Cash is gradually disappearing from our lives. Today, debit and credit cards are the two key payment instruments used for shopping in regular stores and online.
According to Rosstat, back in 2020, at least 89% of the adult population of Russia used them. In 2022, the Central Bank of the Russian Federation reported a record increase in the volume of cards issued - their total number increased by 18% and exceeded 389.6 million.
It is obvious that the popularity of "plastic" payment denmark mobile database instruments will continue to grow. Therefore, let's talk about their features, and also outline the criteria by which debit and credit cards differ - terms of service, issuance procedure, requirements for the owner.
The Main Differences Between a Debit Card and a Credit Card
A debit card is a payment instrument that receives money. It can be deposited by the owner, his employer, third parties or the state. He uses it to pay for goods and services, transfer funds to other people and organizations, and withdraw cash from ATMs and self-service terminals.
Important: The money in a debit card account belongs to the account owner.
In the case of a credit card, the situation is exactly the opposite. The money in its account belongs to the issuing bank and is provided as a loan under certain conditions. For example, at a fixed interest rate. In fact, this is one of the simplest forms of credit: the cardholder pays for any purchases with it instantly, without completing a set of documents and visiting the bank. And he repays the debt by simply depositing money into the account.