Credit Card Or Debit Card, Which One You Choose ?

We now enjoy the convenience way of using automatic teller machine (ATM). The card we use at the ATM is known as a debit card. Today debit cards look exactly like credit cards . Both types of cards can be used at the checkout counter , used to make purchases on the internet, etc. When using debit card to make a purchase, it’s just like using cash. The account that is attached to debit card, is automatically debited at our debit card. The cost of our purchase is deducted from the funds we have in that account.

Credit card is different , when we use credit card to make a purchase we are using someone’s else’s money, specifically the issuer of the credit card, usually a banking institution. We are agree to pay them back the money we borrowed to make our purchase. Plus we also pay interest on the money “loaned” to us at the rate which we agreed to, when applied for their credit card. This is known as the annual percentage rate (APR).

Both Card has different levels of consumer protection that each type of card provides. If someone steals our credit card we’re only responsible to pay the first $50 of unauthorized charges. And, if we notify the credit card issuer before a thief able to make any charges we may be free from all liability. MasterCard and Visa offer zero-liability protection where we won’t pay any charges if someone uses your credit card to make an unauthorized purchase.

The protection offered for debit card fraud is similar but with a few exceptions. Our liability for debit card fraud can jump up to $500 if we don’t report the loss or theft within two business days. Visa and MasterCard also offer zero-liability protection applies to our debit card but only for transactions that do not involve the use of our PIN (personal identification number).

Most people agree that we should use our debit card for the same type of purchases we make as if we were using cash. Therefore, it makes more sense to use debit card than credit card at the grocery store or simillar. Do avoid using debit card for any online purchase or for something which is expensive. Because it is much easier to dispute a charge using credit card. With debit card we are dealing with the merchant directly to resolve any problems with the purchase.

You can read more articles about Credit Cards or debit card at Extra Credit Cards this website is a consumer’s guide to online credit card information. We can learn about low interest credit cards and how to find the best deals when apply for a credit card online or debit card online. Extracreditcards.com provides reviews of business credit card offers, student credit cards, bad credit credit card, Prepaid Debit Cards and secured cards.