Basic differences between a debit card and a credit card.
When you use a credit card, the credit card company essentially extends you a loan for theamount purchased. You typically sign for the purchase, and when they send you a bill, you are obligated to pay your balance. If you do not, the credit card company will charge you interest rates and fees.A debit card is associated with your bank account. When you make a purchase, that exact amount of money is taken out of your bank account within days. When you use a debit card, you typically use a PIN number.The cards look the same, are scanned the same, but are very, very, different.
Head-to-head comparisonWhich offers the best card protection benefits?
Credit Cards.Credit card purchases are covered under the Fair Credit Billing Act. The act states that whenyou purchase something with a credit card, youhave no liability for fraudulent purchases, damaged goods, and products that were never delivered.If you make a purchase with a debit card, the Electronic Transfer Act does provide someprotectionduring a dispute or error. If you notify your bank within two days, your liability islimited to 40000. However, between two days and six days your liability could increase to 100000. Waiting more than six days could mean you have no coverage.Currently, Visa and MasterCard do have policies in place to protect consumers.
But, Visa does have an exception for negligence, and MasterCard also has an exception for those with delinquent accounts or who have reported unauthorized use within the last two years.
Remember, debit cards rely on card policies for protection, while credit card liability is the law.
Which is better if you work for a company that uses a reimbursement system?
Credit cards. With a credit card you have the ability to delay or float payments. This is especially convenient when you use a reimbursement system with your employer. You can make the purchase today and you have 30-40 days until the payment is due. For anyone who makes purchases on behalf of their company, a credit card certainly carries the advantage.
So try to use maximum debit cards than credit card.credit cards are good in need.not desire to show off in front of peoples.