At first glance, credit and debit cards may seem the same to you. When you use them, you may not notice the difference. However, each one has different characteristics that you should be aware of. In this article, find the answer to this important question.
How do I know if a card is a debit or credit card?
With both, you can make payments, shop online and withdraw cash from an ATM. But then, you’re probably wondering “how do I know if my card is a credit or debit card?”
Origin of funds.
A credit card and a debit card find the difference in the origin of the funds, since in the case of credit cards they come from a line of credit granted by a bank that has a maximum spending limit and in the case of debit cards they are associated with a cash deposit account and therefore, when using it, you are directly spending the money you have in your bank account.
Appearance.
The cards are physically very similar, but some debit cards do not have the cardholder's name on the front. Additionally, it is sometimes visible next to the bank name if they are credit or debit cards. The other elements, such as the chip, magnetic stripe, card number or security CVV code, can appear on both types of cards.
Interests and commissions.
Although the difference lies in the source of the funds, the two cards are very different, since credit cards charge interest for their use if you do not pay the total amount stated on your monthly statement. In addition, in both cases there may be fees for withdrawing money or using it abroad, but these are not exactly the same charges, so you should check with your bank.
Revolving credit.
A credit card is a payment method that is associated with a revolving account with a credit limit, meaning that any expense you make will have to be repaid and if you do not do so within the established period, interest will be generated.
What does debit card mean?
A debit card is a card associated with an account into which you or someone else puts funds (money), so you only have the total of them and if you run out of them, you have to deposit money again to be able to spend more.
You control your economy.
Using a debit card helps you organize your finances and control your budget, as it will help you not spend more than what you actually have in your account.
Commissions.
Debit cards can also have fees, but they differ from credit cards in that they can be used for account management, for withdrawals from ATMs at other banks or for replenishment.
Now you can answer the question “how do I know if my card is a credit or debit card?” If for some reason you can’t tell them apart, remember that you can always go to a branch and ask an executive.