Debit Card and Credit Card: What's the Difference?
Created: 01/06/2023, 07:00
By: Sofia Wrede
Do you have a credit or debit card in your wallet?
The two cards are very different - and sometimes only one of them is accepted.
At first glance, they look very similar: both credit and debit cards have a 16-digit number.
The other writing on the cards – including the logos – is also similar.
Both cards have chips, both have a CVC number: a three-digit check digit.
However, a credit card will say “Credit” – often on the back – while a debit card will say “Debit”.
Credit card or debit card: the difference
Credit Card or Debit Card: Do I Need Both?
© Daniel Ingold via www.imago-images.de
Credit cards are usually available from your bank for a fee, while debit cards are free of charge in connection with a checking account.
The biggest difference: With the debit card, the money is withdrawn immediately or within a few days, while with the credit card the amount is only settled later.
You are buying on "credit".
The credit card has this advantage
The biggest difference in using the two cards: Credit cards are accepted in some situations where the debit card doesn't help you.
An example is car rental.
Only about half of all car rental companies in Germany accept debit cards.
Abroad there are even more.
Because: The credit card can be charged in advance with a guarantee.
If the car is damaged, the company has a guarantee.
It doesn't work that way with debit cards - which is why companies are less willing to accept debit cards.
So ask the rental company in advance whether a debit card will suffice.
The same applies to hotel reservations.
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Debit card: For whom this type makes sense
The credit card and the debit card are two very different types of payment methods.
You can see a debit card – like a giro card – as an alternative to a credit card.
The advantage of debit and checking cards when paying is that you have a more accurate overview of your finances.
You can see exactly what you spent in a day and how much money you have left for the month because bills are paid directly.
