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Describe how debit and credit cards are similar and list the three main differences?
Wiki User
∙ 13y ago
Debit and credit cards are extremely similar, they look the same, and can be used in the same way, it is the actual funding side of these cards where the difference comes into play:
1. A Debit card is linked straight to your checking account, and therefore you need to have the money avialable in your account before you can use it for payment. A Credit card is linked to a Credit account with your bank, where they give you money you don't have, and therefore you can make a purchase, even if you do not have a positive balance on a credit card.
2. As you have the funds in your account for a Debit card, you do not pay interest on your purchases, whereas with a credit card you do. However if you have an overdraft facility on your checking account, you may pay interest if you are over drawn.
3. Most of the time with Credit cards, everytime you spend you earn some form of rewards points. Most banks however do not issue these rewards on a Debit card.
Wiki User
∙ 13y ago
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Who is charged for misusing credit cards?
People who misuse credit cards are charged for misusing credit cards.
What is a debit card used for?
A debit card is similar to a credit card, as they typically will contain a Visa, Mastercard or American Express logo. There are two typical types of non-credit cards: gifts cards (which do not have your name on the card) or debit cards (with your name). Debit cards are issued by a bank and generally have conditions for use and monthly maintenance fees. Debit cards can be used in many of the same ways a credit card can: in-person purchases, online purchases, ATM withdrawal (check your card). The difference between a credit and debit card is that debit cards traditionally do not affect your credit rating, whereas credit cards do.
How are debit and credit cards similar?
Their only similarity is the manner in which they are used at the point of sale. If you present a Debit card, the amount of sale is immediately deducted from your bank account. If you present a Credit card, the amount of sale is added to your credit account and then you are billed for payment monthly at a later date.
Do I need to report stolen credit cards to all 3 credit bureaus?
You will not need to report your personal credit cards stolen to the credit bureau. Once you have reported your cards stolen to the credit card companies they are with, they will take care of the rest for you.
How many different types of credit cards?
I think there are about 50 (or more) different types of credit cards in the world.
How are charge cards and credit cards similar and different?
short term credit
What reader reads the magnetic stripe on the back of credit cards entertainment cards bank cards and other similar cards?
A magnetic stripe reader is used to read the information stored on the magnetic stripe on the back of cards like credit cards, entertainment cards, bank cards, and other similar cards. The magnetic stripe contains data such as account number and expiration date, which is swiped through the reader to facilitate transactions.
How are credit cards similar to banks?
Credit cards are issued by banks. They are essentially just a loan at an extremely high interest rate. They are somewhat similar to unsecured or 'signature' loans at a bank.
Are there any differences in military credit cards over normal ones?
There is very little difference between a normal credit card and military credit cards. These cards can be used in the same way as normal ones, and will also have specific credit limits applied. The main difference with a military card is that the interest rates are usually lower than regular credit cards.
Where can one apply for two Juniper credit cards?
One can no longer apply for any Juniper credit cards as they were purchased by Barclaycard in 2004. One can apply for a Barclaycard on their website, and several of their cards have rewards similar to the Juniper cards.
Upon cancellation delinquent travel charge cards may be reported to credit bureaus or similar entities and can affect your credit rating?
True
What credit cards does the Bank of America offer?
Bank Of America offers many different credit cards. It offers cash rewards credit cards, points rewards credit cards, travel and airline rewards credit cards, lower interest rate credit cards, and build or rebuild credit cards.
Where can one go to compare credit cards?
When trying to compare credit cards, one can be easily confused with the abundance of information one can receive. There are many sites which one can compare these cards. Compare the Market has a great tool that can be very helpful. Most major credit cards are listed and can be compared to others offering similar benefits.
Who is charged for misusing credit cards?
People who misuse credit cards are charged for misusing credit cards.
What are airline credit cards and how are they different from regular credit cards?
Airline credit cards are credit cards issued by airlines. They have no real benefits over regular credit cards, apart from the fact that you can collect Air Miles with them.
Are processing rates lower for debit cards vs credit cards?
credit cards
What are some of the dangers of credit cards?
the dangers of credit cards?
