Credit Cards vs. Debit Cards

by contentwriter

Author: Nelly Clarkson

Choosing between a credit or debit card for shopping can be an overwhelming decision. There are many things to think about, from the charges to bonuses and the rewards attached to them. 

Each has its pros and cons, so it is important to pay attention to this article to help you make the right decision.

Let’s review some key differences between credit cards and debit cards to help you decide which is best for you or your business.

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What is a Debit Card?

A debit card is a payment card used to make purchases by deducting funds straight from a checking account. 

When using a debit card, you cannot spend more than your account balance, which is useful to companies concerned about debt. 

Pros of Using a Debit Card:

  • Doesn’t incur debt: If you turn off overdraft protection and related advantages, your debit card may be refused if you run out of money in your account. This can help you to buy what you can only afford while keeping debt at a minimum or zero. 
  • Less charges and no interest. You won’t have to pay interest on a company debit card since you can’t get into debt with it. As a credit card user, you can save a lot of money on interest rates since you won’t have an outstanding payment. 

What is a Credit Card?

Cardholders can use a credit card to borrow money to pay for products and services. You can pay back this loan on a monthly basis with no interest, or postpone payment at an interest rate or any agreed-upon extra costs. Credit cards usually comes with fraud protection as well as other perks and benefits.

Pros of Using a Credit Card:

  • Credit card benefits: Credit card rewards are one of the most significant advantages of using a co-branded credit card for card transactions. Some business credit cards offer reward at a higher rate than the usual rate of most issuers. 
  • Track your financial flow: Another important benefit of a credit card is the ability to finance purchases and monitor your cash flow.
  • Wide Acceptance: Credit cards are widely accepted, making it a fantastic option for shopping at your desired store. 
  • Security: Security is a paramount feature that is expected from all card issuers. The Fair Credit Billing Act (FCBA) protects credit card users against fraud and limits their maximum liability to $50. Some card issuers even offer $0 fraud liability on unauthorized charges, which means users will not be held responsible for any fraudulent activities or purchases on their card. Nevertheless, you should be very careful with your card details and ensure you don’t make payments at uncertified stores or outlet. This may guarantee your safety and protection. 


Now you know the primary benefits and drawbacks of both debit and credit cards for companies. Take into account all of them and choose the one that works for you and your business.

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