Credit Card
Difference between Credit Card and Debit Card
3 min read
•
Aug 30, 2022
Table of contents
There was a time when we only dealt in cash. But if you think of the last transaction you made, chances are you used a cashless mode of payment. Debit & Credit Cards are considered plastic money as they have replaced cash payments across the world & widely accepted for making online payments. While both the cards may look similar, there is a stark difference between a Credit Card and a Debit Card in terms of their mode of operation and features. Let us learn about both cards before understanding the difference between a Credit Card and a Debit Card.
A Credit Card allows you to make cashless purchases on credit with a pre-set limit, operating on a ‘buy now, pay later’ principle, and offering benefits like rewards, cashback, and EMI conversion for high-value purchases. Debit Cards, on the other hand, are linked to your savings or current account, allowing you to make purchases and withdraw cash directly from your bank account. AU Small Finance Bank offers uniquely curated Credit and Debit Cards with attractive features, rewards, discounts, and complimentary benefits.
Difference between Credit Cards and Debit Cards
Let’s understand the difference between a Credit Card and a Debit Card.
| Different Parameters | Credit Card | Debit Card |
| Source of funds | The money is deducted from your Credit Card limit, set by your bank. | The money is deducted directly from your bank account. |
| Spending advantage | You can spend as per the credit limit set by the bank. | You can spend the money that you have in your account. |
| ATM usage fees | You are charged a withdrawal fee and interest when you withdraw cash using your Credit Card at an ATM. | Withdraw cash without any charges, but only up to a certain number of transactions. |
| Interest Free Period | Enjoy up to 48 days of interest-free credit on AU Credit Card. | You don’t have to pay any interest. |
| Annual Fees & Charges | You may be charged an annual fee for using a Credit Card. At AU Small Finance Bank, Annual Fee may be waived off in case you meet the spends based fee waiver condition. | You will be charged an annual fee for your Debit Card basis statement of charges applicable to your bank account. |
| Benefits | Avail discounts, cashbacks, and rewards. For instance, AU Credit Cards offer exciting cashbacks, reward points on top brands. In fact, you can also register for AU Rewardz & accumulate points for transactions done for categories across hotels, shopping, dining, and more. | Avail monthly cashbacks & discounts on top brands with the AU Debit Card range. |
| Customized cards | Now, you can customize your Credit Card as per your needs. AU Small Finance Bank offers LIT Credit Card, India’s first customizable Credit Card that lets you add/modify features and switch on/off the benefits as per your choice. | You can choose the Savings/Current Account basis your needs and opt for a Debit Card that offers you cashbacks, discounts and lounge benefits. |
| EMI facility | Ability to convert big-ticket purchases into easy EMIs with AU Small Finance Bank’s Xpress EMI option | EMI option is currently not available on AU Debit Cards when making a purchase online or offline |
| Liability covers | Avail Comprehensive Protection Cover on AU Small Finance Bank’s Zenith & Vetta Credit Cards covering Air Accident, Card Liability, Credit Shield, Purchase Protection & others |
Which is a better Credit Card or Debit Card?
When considering which is better, Credit Card or Debit Card, you must consider your spending behaviours, financial liabilities, and lifestyle. AU Small Finance Bank’s Credit & Debit Cards range offers
- Exciting benefits like lifestyle privileges, rewards, free insurance, and many others.
- Card controls to switch on/off and securely manage limits for Online, Contactless (Tap & Pay), ATM, Offline and International Transactions.
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