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Debit And Credit Cards<br />By<br />M.Vivek<br />
Debit Card<br />Also known as Bank Card or Check Card.<br />A debit card is a plastic card that provides an alternative pa...
Credit Card<br />Credit cards allow you to 'buy goods now and pay later' - called 'buying on credit'. <br />They aren't li...
Debit or Credit..?<br />A debit card uses the money you have and a credit card uses the money you don't have.<br />"Debit ...
Advantages of Debit Cards<br />A consumer who is not credit worthy and may find it difficult or impossible to obtain a cre...
Disadvantages<br />Many banks are now charging non-sufficient funds fees based upon pre-authorizations.<br />Many merchant...
Cntd….<br />Debit cards offer lower levels of security protection than credit cards.<br />Laws protect the consumer from f...
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Debit And Credit Cards

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Debit And Credit Cards

  1. 1. Debit And Credit Cards<br />By<br />M.Vivek<br />
  2. 2. Debit Card<br />Also known as Bank Card or Check Card.<br />A debit card is a plastic card that provides an alternative payment method to cash when making purchases.<br />It can be called an electronic cheque, as the funds are withdrawn directly from either the bank account, or from the remaining balance on the card.<br />
  3. 3. Credit Card<br />Credit cards allow you to 'buy goods now and pay later' - called 'buying on credit'. <br />They aren't linked to your bank account.<br />If you don't repay your bill in full by the date shown you're charged interest on the whole amount of the bill for that month. <br />The rates of interest - indicated by the APR (annual percentage rate) - is very high. <br />
  4. 4. Debit or Credit..?<br />A debit card uses the money you have and a credit card uses the money you don't have.<br />"Debit cards" are linked directly to a checking account whereas Credit cards are not.<br />The "debit" networks usually require that a Personal Identification Number(PIN).<br />The "credit" networks require that purchases be made in person and often allow cards to be charged with only a signature, and/or picture ID. <br />
  5. 5. Advantages of Debit Cards<br />A consumer who is not credit worthy and may find it difficult or impossible to obtain a credit card can more easily obtain a debit card.<br />Use of a debit card is limited to the existing funds in the account to which it is linked.<br />A debit card may be used to obtain cash from an ATM or a PIN-based transaction at no extra charge, other than a foreign ATM fee. <br />
  6. 6. Disadvantages<br />Many banks are now charging non-sufficient funds fees based upon pre-authorizations.<br />Many merchants mistakenly believe that amounts owed can be "taken" from a customer's account after a debit card (or number) has been presented, without agreement as to date, payee name, amount and currency, thus causing penalty fees for overdrafts.<br />
  7. 7. Cntd….<br />Debit cards offer lower levels of security protection than credit cards.<br />Laws protect the consumer from fraud much less than with a credit card.<br />

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