Concept explainers
Difference between debit and credit card.
Explanation of Solution
Using a debit card is just like using cash because, in order to use debit card, one must have balance in the account so that he/she can clear the transaction made with the debit card. Without having balance in the bank account, one cannot use the debit card. On the other hand, credit card is just like loan that does not require minimum balance in the account in order to use the card. But the holder of the credit card has to pay back the money borrowed with the credit card.
Introduction:
Debit card is a card that allow card holder to transfer money to other’s account or to pay for the purchase of goods and services. It also allows holder to transfer money available in the bank account.
Credit card is a card that allow card holder to transfer money or to pay for the purchase of goods and services. It also allows holder to transfer money above available balance in the account but only up to a certain limit.
Want to see more full solutions like this?
- different types of moneyarrow_forwardBased on your current situation, which of the cards would best suit your needs today? (Credit, debit or prepaid card) Explain why. 2. How would you go about obtaining one of those cards?arrow_forwardDescribe what consumers should know about credit monitoring services.arrow_forward
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub CoPrinciples of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStaxEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning