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What is the difference between Credit Card and Debit Card?

What is the difference between Credit Card and Debit Card?

Debit Credit Card: There is a lot of difference between ATM, debit and credit card, know whether or not Debit Credit Card Today everyone has ATM debit and credit cards in their pocket. But have you ever wondered what is the difference between these three cards. So you also know what is the difference between these three.

ATM, debit and credit cards have been in vogue for a long time. If we say that all three had come together, then it would not be wrong. Despite this, many people do not know what is the difference between them. Both of these are being used a lot in Digital India. In this, the importance of debit and credit cards has increased a lot. Although, now a days most of the people are using net or mobile banking, but there would be hardly any person who does not have a debit card. Now banks are urging a lot to take credit cards.

difference between Credit Card and Debit Card

Debit and Credit Card Feature: There is a very slight difference between debit and credit card. Both the cards are used for digital payment but the payment capability and mode of payment of both the cards are different. Understand the difference between both the cards here.

Debit and Credit Card Difference: In today's era, digital banking has made everything from shopping, traveling, dining easy, which involves financial transactions. Digital banking has become very easy due to the debit and credit cards issued by the banks. Digital banking has made all financial transactions so easy that even going to the ATM to withdraw money seems like a huge task. But has this question come in your mind that what are these debit and credit cards? If yes, then know today what is the difference between debit card and credit card issued by banks.

What is the difference between debit and credit card? Difference between Debit card and Credit card

Debit and credit cards are the most popular methods of payment. Because, both of them eliminate the need of carrying cash everywhere. Now you can swipe the card, and voila, the payment is done. However, both of them are very different when it comes to their features and mode of operation. Specifically, the source of funds and method of payment. Before we delve into the difference between debit and credit cards, let us have a look at their basics.

Generally, banks issue two types of cards to their customers, with the help of which you can spend money – debit card or credit card. Although you can do shopping or any payment with both debit and credit card, but because debit card is linked to your savings or salary account, therefore money is deducted from your account by shopping with debit card. While paying with a credit card, money is deducted from the credit card, but you get time to repay it and this amount is later deducted from your debit card.

If you tell their difference in one line, then it will be like this-

  • Debit card lets you withdraw, spend or transfer money from the bank account linked to it. 

  • Credit cards allow you to spend on a line of credit (like a sanctioned loan) and repay later.

Now let us explain the functions and features of both these types of cards in detail-

The table below mentions some of the noticeable differences between credit cards and debit cards-


Credit Card

Debit Card

credit limit

monthly credit limit

No Monthly Credit Limit

Sources of funds

Funds are borrowed from the credit card issuer

Savings Bank Account or Current Account

ATM withdrawal


not chargeable


Interest free credit up to 50 days

no interest

annual fee

Annual fee may or may not be charged

no annual fee


Can be used at all merchant outlets and online

May not apply to some websites

eligibility criteria

Credit card eligibility depends on several factors, including salary, credit history, place of residence, etc.

The eligibility criteria requires you to have a bank account.

security features

Zero Liability Insurance (certain cards)

No Zero Liability Insurance


In a billing cycle all transactions are processed and a final bill is generated which is to be paid within a specified time.

There is no bill as the money is directly debited from your account.

difference between debit and credit card

1. Credit Limit

Credit card will have a limit according to your card, it can be 1-2 lakh or more. With this, you can shop only up to a certain limit, but later you have to pay that amount, but you can use the savings you have in the debit card only up to that limit. 

2. ATM Withdrawal

Withdrawal fees and interest are applicable for withdrawing cash from a credit card. Whereas there is no fee for withdrawing money from debit card. However, both the cards have a daily withdrawal limit. However, credit cards have monthly withdrawal limits. 

3. Interest

If after 50 days you have not paid the credit card, then you may be charged penalty or interest. Whereas you do not have to pay any interest on debit card. 

4. Annual Fee

No annual fee is charged for debit cards, but for some credit cards, the bank does charge an annual fee. 

5. Benefits

Debit card gives you benefits ranging from discount to cashback on online shopping, but in credit card you get many benefits, it includes cashback, discounts, rewards, which you can convert and enjoy flight tickets or other gifts. Huh.

6. Security Features

The security features are the same in both debit and credit cards. OTP (OTP), SMS notification (SMS) or PIN number is asked for online shopping or making some payments with both the cards.

What are the similarities between Debit and Credit cards?

  • Both are plastic cards of the same size and color with lots of numbers written on them.

  • Both are accepted at all payment locations and the method of using both is almost the same.

  • You get the services of both through one or the other banking medium and the companies making these cards manufacture both types of cards, so the symbols written on them are more or less the same.

  • Most importantly, both of these make our financial transactions easy.

  • After knowing the similarities, now let us try to understand both in turn so that it becomes easier to understand the difference.

What is debit card? (What is Debit Card?)

Debit Card | Debit Card

Debit card is such a card, which helps you to withdraw or spend money from your bank account. You can do this with the help of a pre-defined PIN number or password. You can withdraw or spend money only from the bank account to which your debit card is linked.

Generally, as much as the balance in your bank account, you can spend money from the debit account only to that extent. But overdraft facility can also be available in certain categories of salary account or business account. 

With the facility of overdraft, you can spend or make payments within a limit even if there is no balance in your account. It also has to be returned or deposited to you within a specified period.

Now many companies have also started providing Debit Card EMI facility with Debit Card. In this, you get the facility to spend first and later repay the money in installments.

Debit card is a plastic card issued by the bank against your current or savings account. With this, you can spend the amount saved in your account without cash. When you swipe the card at a POS machine, withdraw money from an ATM, or use it to shop online, the amount is digitally debited from your account and your balance is updated. It is important to remember that you are spending only your saved amount, you cannot spend more than the amount available in your account.

How does Debit Card work? (How Debit Card Works?)

If you have an account with any bank, then your debit card is issued by that bank only. It allows you to make any kind of payment, for which the bank also allows you to set a PIN code, which is very important for you. No misuse of the debit card with the help of this PIN code. Can do. Through this card, you can use only that amount, which is already present in your account. If you use or want to use more than that amount, then it is an overdraft amount, for which you have to pay some additional amount in the bank.

How to apply for Debit Card? (How to apply for Debit Card?)

You can easily get debit card through your bank but for that you have to go through a process which is as follows:-

  • To apply for a debit card, you first need to open an account by going to the bank. If you are already maintaining an account with a bank then you do not need to open another account for the debit card.

  • To fill the application for debit card, you have to collect all the information related to yourself like driving license, Aadhaar card number and your current job information as well as you have to submit your email id or registered mobile number to the bank.

  • You can also fill the application form online for debit card application, in that also you have to include all your personal information.

  • After this, after checking all your documents, you are issued a debit card by the bank.

  • Usually, a debit card is issued to any consumer within 7 days or 15 days. After the card is issued, it also gets activated within about 1-2 days or 24 hours.

Benefits and advantages of Debit Card

By using debit card, you can do shopping and at the same time you can avail many other benefits, let us know in detail….

Avoiding fees and service charges

The most important advantage of using a debit card is that by using it, we can avoid any additional charges or service charges by the bank. But to avoid fees and service charges, you have to use your debit card carefully.

Keep full details of expenses

If you pay any amount through Debit Card, then its complete details are sent directly to your registered number or email ID. You can also get its complete information printed from time to time in the passbook issued by the bank.

prompt payment -

Through Debit Card, you can easily and quickly pay any amount anywhere from your bank account only. In this you do not have to face any delay nor do you have to pay any charges.

Complete security

Keeping the purse in the pocket is more likely to be stolen, but if you go shopping or outing with a debit card, you can easily complete all your work without worrying. On the other hand, even if your debit card is stolen, it will not affect the amount in your bank account. No one can use that card, because it has a pin number, which only the owner of that card knows.

Offers –

Some malls, shopping centers and offers are also placed on debit cards for online payment, from which you get some reward amount or discount by doing shopping or bill payment there. This is also one of the biggest benefits, due to which consumers use debit cards more.

Debit Card Limitations and disadvantages

There are as many disadvantages as there are advantages of having a debit card, let us know about the disadvantages associated with debit cards…

Credit not allowed

You can pay any amount through debit card, but with that card you cannot withdraw any additional amount from the bank, that is, you cannot borrow.

Difficult to dispute the use of cheats –

If your debit card is stolen or misused somewhere, then it becomes very difficult to resolve this dispute.

Additional Fee –

If you withdraw some additional amount from the bank through debit card, which is not even present in your bank, then you have to pay an additional fee on debit card transaction to the bank.

What is credit card? (What is Credit Card?)

What is a credit card?

credit card | Debit Card

A credit card is a card that allows you to spend money first and repay later. In this you get a line of credit of a certain limit. Some amount is already put in the line of credit. how much of that you'll use, It has to be returned within a specified time limit (maximum within 50 days). Failure to return the money within that time frame attracts penalty and interest on the balance. Keep in mind that credit card penalties and interest are quite high. Its interest is about 40% per annum. The money that you have not used will be lying on your card as line of credit and no interest or charges will be paid on it. However, to keep some credit cards, you have to pay a fee of Rs 500 or Rs 1000 annually. At the same time, for some credit cards, these charges are not applicable. Apart from this, there is also a facility to withdraw some percentage (normally 30%) of the credit card limit in cash. But for this you have to pay some fee. For example, if your credit card limit is Rs 1 lakh, then you can get the facility of getting cash up to Rs 30,000 out of it. Most companies offer the facility of Credit Card EMI, in which you can make a purchase first and pay it in equal installments.

How does credit card work? (How Credit Card Works?)

Credit cards allow the holder to borrow a limited amount from any financial institution or bank as and when required. But they are also given 1 limited period of time to return that amount to the bank or financial institutions, which can usually be 25 to 30 days or more. If a consumer returns the amount of credit card payment to the financial institution before the time limit, then he does not have to pay any additional fee, but if he does not pay the amount within that time limit , then that person has to pay interest as an additional amount.

How to get Credit Card (How to Get and apply for Credit Card?)

  • To get a credit card, you need some important documents, which include your PAN card, Aadhaar card, and your passport size photo.

  • Along with all these documents, a photo copy of your bank statement and receipt of your income tax return is also attached.

  • After collecting all the documents, you can go to any financial institution or bank and meet an agent who will assist you in the credit card process.

  • When all your documents are thoroughly scrutinized, the process of applying for your credit card is complete.

  • If your documents are completely correct, then after that you are provided with a credit card in an interval of 7 or 15 days.

What are the benefits of credit card? (Benefits of Credit Card)

Just like there are many benefits of using a debit card, similarly using a credit card also gives you many benefits, some of which are as follows:-


You can make any kind of payment through credit card, like booking flights, car rentals or filling petrol and getting all the convenience like grocery shopping, in return you get credit card reward points. From which you also get some rewards in exchange for all the facilities.

Signup Bonus –

Credit cards offer many more attractive features like you get some amount of cashback for signing up with the credit card and also get a huge amount of bonus points. In this, for doing any activity in the form of interest, such as paying something or taking a loan for a long time, a low rate of interest is applied on it.

Cashback Offers –

Many shopping websites and many shops also provide cashback offers on swiping credit card payments, with the help of which the amount is saved above the monthly expenditure.

Insurance facility –

Many types of insurance facilities are also provided by credit card companies while issuing credit cards. Which includes travel car insurance, travel insurance, insurance of security on purchased goods, etc.

Fraud Protection –

Credit cards are very easy to use and are made completely fraud-free by banks to financial institutions. There is no chance of fraud while making any kind of shopping or payment through this card.

Convenient and secure online shopping

This is the era of online shopping and this card provides you so many facilities, which are very secure, through which you can fulfill all your needs by shopping online as much as you want. For which you do not have to pay any fee, instead you are provided with credit points to use for daily purchases.

Sahara is made in less cash –

Suppose you have to do a lot of shopping at home according to some function or some need, and you do not have anything in the form of money. In such a situation, the credit card comes out as your best friend. Because all your shopping is paid for by the financial institution, for which you can pay them back later.

Works in any currency –

Credit card works in different types of currency, due to which we have to do shopping abroad as well, like if you go for a trip abroad, then you can comfortably transfer any type of currency to your currency through credit card. Can convert into, that is, by converting into the currency of that country, you can comfortably shop or pay bills.

Credit Card Limitations

Whatever the thing may be, it has its advantages, but there are also disadvantages, similarly credit cards also have some disadvantages, which are as follows:-

Loan potential

Credit card is such a card, from which you do not have an idea of ​​the amount paid while shopping, that is, you go on shopping continuously while enjoying and in such a situation, if you do not pay that amount back to the financial institution of the bank , then you end up with a huge amount of debt and you are not even aware of it.

credit score

Credit cards all work its full play depends on the credit score associated with the credit card. Therefore, if your credit score decreases somewhere due to non-payment, then you are not even eligible to apply for a credit card in the future.

Fear of extra charges

Suppose you are not able to make full payment of the bills filled by the financial institutions through credit card, then in such a situation you have to pay additional charges. And if you do not pay that amount within the time period, double interest is charged on that interest amount due to which the amount you pay gradually doubles to quadruples.

limited use

If anything is used within a limited and prescribed limit, then it is not harmful to you, but if you start using the credit card beyond a prescribed limit, then it can cause you many losses. Can get compensated.

When and how is it appropriate to use credit and debit cards? (When and How to Use Credit and Debit Card?)

Both credit card and debit card can be used in different circumstances.

Credit and Debit Card use for Business-

There are many types of needs in starting a business, which require finance to fulfill, in such a situation, if you do not have finance, then you can do all the shopping and purchases related to your business through credit cards. For which you are allowed to take loan credit of unlimited amount. In return, you have to pay a monthly amount to the financial institutions. On the contrary, if you pay with debit card to get all the facilities related to your business, then all those payments are done easily from the amount in your bank account and in return you do not incur any debt. Is.

Benefits for business

If you use the credit card repeatedly for your business, then in return you get some rewards and your credit score also increases. But if you do not repay the amount within the limited time period, you have to pay an additional fee for this. If you complete all the payments with your debit card, then you do not have to pay any additional charges and at the same time you do not incur any debt.

Disadvantages for business

You can easily get all your facilities with a credit card, but such a high financial loan is not good for a business. A debt-ridden business never moves towards progress, this is one of the main reasons why you can harm your business. On the contrary, if you meet all the needs of your business using debit card, then you are also provided with additional offers and you can run your business conveniently without any loan.

Precautions to be taken while using Credit and Debit cards

Nowadays incidents of online fraud and card cloning have become common, due to which there is always fear in the minds of people using credit and debit cards. If you take the following precautions while using your card, then there is every possibility of avoiding such frauds-

  • Do not reveal the series of numbers printed on your card to anyone and try not to lose sight of it during use.

  • Do not tell your card password number to anyone even by mistake, it is completely confidential and no bank asks its customer for his password in any way.

  • Do not use sites that do not start with https but start with http.

  • Never store your card online on any site because if your login gets into the hands of the hacker, then the credentials of your card will also get into his hands.

  • Keep changing the password of your cards from time to time, in such a situation the chances of online fraud are reduced.

  • After swapping your card and entering the password at any store, do not forget to take the receipt after the transaction is complete.

  • Avoid using the card at unmanned ATM machines or ATM machines located in secluded places. Hackers use similar ATM machines to clone cards.

  • If you take these precautions, you will be able to enjoy your cashless transaction for a long time without any loss.

What should I choose Debit card or Credit card?

Now that you know the difference between both the cards, the question arises whether you should choose a debit card or a credit card for yourself. To make an informed decision, we have put together a list of features of debit and credit cards, so that you can check which one suits your needs.

What is meant by credit and debit? , Credit and Debit Meaning in Hindi

Whenever there is a transaction from your bank account, the bank informs you about it through SMS. The words Credited or Debited are often used in these SMS. Similarly, banks also issue you two types of cards in the form of Debit Card and Credit Card to spend money. In this article, we will know what is the meaning of the words Debit and Credit in the case of bank account? What are the meaning of Credit and Debit in Bank Account's SMS, statements, and Cards?

Meaning of Credit and Debit. Meaning of Debit and Credit

In the language of banking, Debit means to write in the item of expenditure or to write a loan. While the word Credit means adding money to the credit side or depositing in the account. In relation to the bank account statement of an individual, they mean the following-

  • Debited for: It means that that much money has been deducted or withdrawn from your account number.

  • Credited to: It means that that much money has been added or deposited in your account number.

Use of words Transferred and Withdrawn in place of Debited

Sometimes the words Transferred or Withdrawn are also used instead of Debited in the message when money is deducted from your account. Generally, these words are used in the message received for transfer to direct bank account or withdrawal of money from ATM machine. But, in practical terms, Debited, Transferred and Withdrawn) mean the same thing that money has been deducted or withdrawn from your account.

Difference between Debit Card and ATM Card | Difference between Debit Card and ATM Card

Often people consider ATM Card and Debit Card to be the same thing. Because often the usage of both is understood in the same way. But, in reality, ATM Card and Debit Card have different features. The main difference between them is-

ATM Card: ATM card is such a card, which can be used only for transaction on ATM machine. You can do this transaction with the help of a pre-set 4-digit PIN number. Initially, when the facility of withdrawing money from ATM machines with the help of cards was started, only ATM cards were given to the customers.

Debit Card: You can use debit card for transaction on ATM machine. With their help, you can do transactions on other types of payment systems as well. For example, at business stores, shopping centers, restaurants, online shopping websites, they can also be used for payments. Nowadays, most bank account holders are issued Debit Cards instead of ATM Cards. They require a PIN number for payment or transfer.

Meaning of Debit and Credit in Double Entry Book Keeping System 

In the case of business accounts having double entry system which is a bookkeeping system, the meaning and role of Debit and Credit is quite different from Debit and Credit in bank accounts. In this, all the transactions related to your business are entered in both the debits and credits columns in your account ledger. Source account i.e. the account from which the money comes out, is entered in the credit column on the right side. Destination account i.e., in which the money is deposited and reaches, is entered in the Debit column on the left side. 

  • In fact, in this, under the Debits column on the left, those entries are recorded, which increase your asset account or expense account. Or decrease in liability account or equity account. 

  • Conversely, in the Credits column on the right, entries are made that increase your liability account or equity account, while decreasing your asset account or expense account. 

For example, you are the owner of a business. You decide to invest $500 in your business. Here the source account will be your Owner Equity account. In the Owner Equity account, it has to be entered towards the column on the right side (Credits). Here the destination account will be your Bank Account, so an entry of $500 will also be made in the left side (Debits) column below Bank Account.

Since every transaction is recorded in both the columns, it is called double-entry bookkeeping. Similarly, since every transaction is entered in both columns, total debits and total credits are always equal. This is known as balancing the books.

People also ask

Q: What is credit called in Hindi?

Ans: It means depositing in account, depositing money. Whenever money is deposited in someone's bank account, this thing is called credit in the field of banking.

Q: What is the meaning of credit card?

Ans: Credit card is a financial instrument issued by banks, which has a pre-set credit limit, which helps you to do cashless transactions. The card issuer sets a credit limit based on your credit score, credit history and your income

Q : What is the difference between credit and debit card?

Ans : While credit cards allow you to borrow money from the card issuer up to a certain limit, debit cards allow you to do cashless transactions by drawing funds already deposited in your bank account.

Q: What is credit and debit called in Hindi?

Ans: A debit transaction refers to an asset or an expense transaction, a credit transaction refers to a transaction that will give rise to a liability or a benefit. A debit transaction can also be used to decrease a credit balance or increase a debit balance.

Q : What is the meaning of credit in bank account?

Ans: Credit means deposit in a bank account. This means that the amount was credited to your account in any way. In other words, being credited means that you have deposited money in your bank account, money has come to your bank account from somewhere or someone else has sent money to you.

Q : What is meaning of debit in Hindi?

Ans : Definition And Hindi Meaning Of Debit

Debit in a bank account means withdrawal of money from the account. That is, whenever money is withdrawn from your account, this thing is called debit in the field of banking. The verb form of debit is debited.

Q: What is the credit card limit?

Ans: If someone has a credit card of SBI and the credit card limit is Rs 10,000 per month. So you cannot spend more than Rs 10,000 per month. Credit card limits usually differ from issuer to card issued by the issuer (bank).

Q: What is the benefit of credit card?

Ans: Loan can be easily available

Although you can spend on the basis of the limit given in the credit card, but the biggest advantage of having a card is that the bank gives you a pre-approved loan easily in case of emergency. You can use it as per your need and return it on time.

Q : Which card is best for your business?

Ans: If seen alternatively, both the cards are good for your business if you use them properly. If you use a debit card, then you have to use a limited amount of yours which proves beneficial for your business in future. There is no limit on the use of the same credit card, so if you use a credit card for your business, then it goes up to a limited amount, due to which your business may have to face many losses in the future.

Q: What is Business Debit Card or Business Credit Card?

Ans: Business Debit Card is such a card from which you can directly use the amount present in your bank to meet the needs of your business. On the other hand, a business credit card is a card with the help of which you can get a loan or a loan amount from the bank to meet the needs of your business, in return for which you promise to pay a fixed amount every month to the financial institution and the bank. do to.

Q: Can I get a credit card without a credit score?

Ans: Yes, there are many financial companies in the market that provide credit cards to consumers even without a credit score.

Q: Which card is the right option for online shopping, credit or debit card?

Ans: If we talk about understanding, then shopping online with debit card is very beneficial because it gives more warranty as well as rewards and also includes security in shopping with debit card. If its benefits are counted, then the first benefit is that you will be protected from fraud. Because with this any amount is paid directly by your bank. Even if you want to send an item back, the amount paid is returned to your bank account.

Q: What is cashback?

Ans: Cashback is the amount that you get back some percentage of the amount instead of paying the amount for any transaction. That amount is called cashback amount.


So friends, this was the meaning of the words Debit and Credit and information about their use in banking.

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