Both the credit cards and debit cards are electronic financial products offering convenience and safety to the card holders. They offer special rewards, such as cash back on purchases made through the card. They can be used to withdraw money from ATMs, depending on the cash limit available on these cards. however, they differ from each other in a number of ways.

1. A debit card is like cash or a personal check whereas a credit card is a loan from the credit card company.
2. A debit card is a ‘pay now product’, whereas a credit card is a ‘pay later product’.
3. In case of a debit card, the customer’s account is immediately debited on payment or withdrawal. On the other hand, a credit card holder can avail credit for a period of 30 – 40 days.
4. An account with the bank, either savings or current, is essential for using a debit card. This is so because the spending amounts are restricted to the balance available in the account of the holder. Such requirement is not essential to obtain a credit card.
5. In the case of a credit card, the issuer offers credit and overdraft facilities. Such a facility is not available with a debit card.
6. The risk of fraud is low in a debit card as compared to the risk associated with the credit card.
7. The debit card business requires installation of advanced telecommunication network. No such network is required for a credit card program.