Since when the term of plastic money is introduced, people have started it using in a large manner. Now that one card can fulfil all the financial needs, carrying a little cash is also enough. However, many people aren’t aware of the basic differences that a debit card makes from credit cards. Firstly see, what is a debit card, and how it differs from credit cards.
What is a Debit Card?
A card issued by the bank or a financial institution which helps you transfer money online from one account to another is nothing but a debit card. Basically, it’s a payment card which allows an account to account transfer. Almost all the banks in the Gulf countries, especially Kuwait, are offering debit cards with several benefits.
Debit card v/s Credit Card
Though both the cards collectively complete the term plastic money, there are some key differences between both. Check them out-
Debit cards are linked with the bank account through which you can withdraw the amount. There’s a limitation of withdrawing the money as you can get the amount exactly what you have in your account. On the other hand, credit card has a specific credit limit irrespective of the amount you have in your account. It’s nothing but borrowing the money from the bank.
You can use a debit card wherever the credit card is used, but you can’t make it vice-a-versa. Credit card usually needs a signature to purchase anything.
You need to enter pin to complete the transaction whereas credit cards give you amount with a certain period of usually 30 days. You need to repay the amount to the bank within this period.
Debit cards are the best suitable for everyone as it allows you to spend the amount restricted to your bank balance; ultimately, it lets you stay in your budget.
Usually, banks offer debit card in Kuwait when you sign up for the savings account. There’s no any additional charge to be paid to the bank. A few banks offer tap and pay system where you do not even swipe the card; you just tap it on the machine available at point of sale, and the transaction is made. Similarly, such tap and pay cards don’t need to be inserted in ATMs as the money can be withdrawn by just tapping the card and entering the PIN.