Decision To Choose Between Debit Card Or Credit Card

Cashless policy is what the nation's apex bank advocate. In this modern era of technological advancement, payment for goods and services comes so easier with the use of electronic payment system.

Shoppers may not need to be present physically to buy items, which indicates that payment can be made online. Usually, payment is done by the use of a card - debit card or credit card. There are still situations one can be in a shop and yet decide not to pay with physical cash. With POS, payment can be made through the use of debit card or credit card. As a spender, which of the cards - Debit Cards or Credit cards best suit your financial goals?

Debit Card

Debit card is a prepaid card that is directly linked to your bank account which you can use to pay for goods online or in shops and also withdraw money from ATM. A debit card allow you to spend only the amount of money you have in your bank account. When you pay for goods, your bank immediately deduct the amount spent. This is more reason why you should always fund your bank account linked to your debit card before making payment online or POS.

Credit Cards

Credit card allow you to pay for goods or services but not linked to a personal bank account but rather to a bank or the financial institution that issued the card. When you use a credit card, the issuer pays the merchant and you go into debt to the card issuer. You are expected to pay back within 30 days or spread it over and incur interest.

Due to security concerns, many have try to inquire of the best credit cards available. Here is an article that highlight the best credit cards of 2016 that will help you make informed decision about your use of credit cards.

Note that the logo of a major credit card company, such as Visa or MasterCard is also on Debit cards. Hence, the logo doesn't make them the same.

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