Credit vs. Debit Cards

There are many differences between a credit and a debit card, but people are unaware of most of them. Before making a choice between the two types, a person should consider many aspects of the question. People, who want to make a good decision, should look at the advantages and disadvantages of credit and debit cards, making a decision after they know the facts.
Many people say that debit cards are better, because they feel like real money. This is true in some way: the card is attached to a bank account funded with money. The card holder cannot spend more money than he has on the account, so it is not possible to end up in debt. Credit cards are similar: the account is funded with money, but there is a credit limit the customer can use. Since it has a 30 day interest-free repayment period, the customer can pay off the bill without paying interest. The problem is that people consider this credit as a loan, and they spend it, without thinking about the bill from the end of the month. This is one reason many people choose debit card to credit cards: they do not want to end up in credit card debt.
A bigger difference between credit and debit card is that debit card payments are withheld immediately, while credit card users can opt to withhold payment until they are sure that they had paid the right person, or they are satisfied with the goods they had bought. This also means that credit card holders have bigger protection against fraud. This is true, between some limits. Credit card holders have zero liability in case of theft, while debit card holders have to pay the first $50 of unauthorized payments. This is not true in every situation, because even the debit card can be blocked if the owner announces the bank in due time. This should happen as soon as he notices the missing of the debit card, but the best is if the owner announces the bank within 24 hours from the theft, this way it is quite probable that he will be granted zero liability. The general truth is that it is easier to steal money from a debit card than from a credit card, especially if the holder does not take care and someone else sees his PIN code.
Another difference between credit and debit cards is that in the first case when people pay using their cards, they do not have to enter a PIN code; it is enough if they sign the receipt. Debit card owners usually have to enter their PIN code, but this is not the best thing to do. Banks still charge debit card owners with a POS fee, and the bank will charge the person as soon as he had entered his PIN code. To avoid this situation, people can tell the shop assistant that they have a credit card even if they pay with debit card, the shop assistant will not know the difference, but the holder will not have to pay the POS fee, and if any problems occur, he can prove with the signature from the receipt that he effectuated the payment.
There are a few situations where debit cards are not accepted. This is very rare, but it is possible. Rental car companies sometimes accept only credit cards, saying that a credit card implies responsibility and creditworthiness. This might not be true, since many credit card users find themselves in credit card debt. This is only an exception, since both credit and debit cards are widely accepted around the world. Most of the time, the sales person will not even be interested if the customer pays with credit or debit card, but some merchants make a difference.
The biggest difference between the two types is that debit card owners do not pay interest, while credit card holders pay interest if they pay their bill late. Credit cards are a little bit safer than debit cards, especially when a person wants to purchase something from the internet. Debit cards are perfect for the everyday small purchases, while credit cards are the best for the bigger, more important purchases. Both cards have their advantages and disadvantages, people should think about their needs and choose the card type which fits them.