What is the difference between a debit card and a credit card?

Debit cards are also referred to as check cards. Debit cards look like credit cards or ATM (automated teller machine) cards, but work like cash or a personal check. Debit cards are different from credit cards. A credit card allows you to pay later, with a debit card your money is deducted from your checking or savings account.

pre-paid-debit-card

Debit means “subtract.” When you use a debit card, you are subtracting your money from your own bank account. Debit cards allow you to spend only what is in your bank account.

Credit is money you borrow from a bank or other financial institution. The amount the issuer allows you to use and the interest rate is determined by your credit history, income, debts, and ability to pay. You may use the credit with the understanding that you will repay the amount, plus interest if you do not pay in full each month. You will receive a monthly statement detailing your charges and payment requirements. You can obtain a Credit Card in any financial bank or use bank websites for get credit cards online. In France for example you can generate your credit card free online ( generateur de carte bancaire en ligne gratuit ).

What you should know about debit cards:

  • Obtaining a debit card is often easier than obtaining a credit card.
  • Using a debit card instead of writing checks saves you from showing identification or giving out personal information at the time of the transaction.
  • Using a debit card frees you from carrying cash or a checkbook.
  • Using a debit card means you no longer have to aquire traveler’s checks or cash when you travel.
  • Debit cards may be more readily accepted by merchants than checks, especially in other states or countries wherever your card brand is accepted.
  • Returning goods or canceling services purchased with a debit card is treated as if the purchase were made with cash or a check.

People that have family members that reside in other countries. Funds can be deposited in your account provided by the debit card company. The family member abroad can access the money using the Visa, Mastercard or ATM card that is issued. This is common place for family members in Mexico, Central and South America and Canada. Envio (money transfer companies that operate in Central America) companies here in Los Angeles charge as much as $15.00 per hundred dollars to send money to other countries.

I wouldn’t recommend offshore pre paid debit card issuers because there is little recourse if they close or move as far as getting your money refunded. There may be astronomical costs for a simple phone call to customer service, if you can reach them at all. Be safe, bank and trust your money with an American bank!

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