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Credit Card Vs Debit Card Vs Check Card
This is the time of plastic money, and we use the various forms of it every day in our lives. Here is a brief comparison of the popular types of plastic money used: credit card, debit card, and check card.
Credit Cards
Credit Cards are your passport to restricted credit from your banker. You can just swipe the credit card to make purchases on credit, up to the limit allowed by the bank. You only need to pay back the money, alongside certain interest, at the end of a specified time period. Certain credit cards will also let the customers withdraw a percentage of the credit limit allowed from an ATM, if required. This is known as a cash advance and they carry a very high interest rate until you pay it off. Best to use these cards soley for borrowing credit, not cash. Many cards also have perks such as cash back or airline miles. Best to research and find which card benefits your lifestyle the most!
Debit Cards
Debit Cards, on the other hand are directly linked to your bank account. When you swipe your debit card to make purchases, the money is actually deducted from your own account simultaneously. Usually transactions using debit cards are permitted only after you key-in your password, like in an ATM. Make sure you widthdraw from machines that have low fees. Most range from $1.50 to $3.00. Depending on the establishment I've seen as high as $10! Some banks also refund fees for special card members.
Check Cards
Check Cards are similar to debit cards, save the fact that it can’t be used in an ATM to withdraw money. Also, you won’t be asked for a PIN when you use it to make purchases. Instead, you will just be asked to sign the transaction slip at the end of the payment like in a credit card. This is a good option for people who don't want to spend more than they have in their account. You aren't borrowing any money, just withdrawing from your bank account.
Further, liability on stolen credit cards is minimal if you inform the stealth to authorities in time. You might have to make some payments, if the person who stole your card made purchases before you’ve reported the loss. In case of debit cards, if you delay reporting the loss, you may end up being liable for all the withdrawals made/purchases made with the card. In short, time is crucial in reporting the theft.
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