Tuesday, November 25, 2008

Basic Definition of Credit and Debit Card

prepaid fuel cards

Previously, we have learned about prepaid fuel cards know how.
As for today, we shall learn a basic definition of credit and debit card. Sound interesting?

We have to familiar ourselves with the term of credit and debit card because it has a relationship with prepaid fuel cards (our prime topic).

Did you know that most debit cards have a visa or MasterCard logo?

A debit card is NOT the same as a credit card. You can use your debit card like a credit card, but there is no credit being extended - it's still taking the funds from your personal account.

When you have a debit card you can process the payments either as a debit or as a credit. If you use it as a debit, for the most part you have to input your PIN when you use it at a point of sale machine, such as at Wal-Mart. If you run it as a credit, you don't need to input your PIN.

Think of your debit card as a check but the transactions usually are posted immediately or almost immediately depending on the bank.

As for credit card - Issued by Bank as a loan with a credit limit and can be used worldwide to purchase goods and services where you see the Visa and MasterCard logos.

It’s allows the holder to pay the retailer by credit (up to the credit limit) and the card holder pays the money back either in full or by minimum monthly payments. The outstanding money attracts interest at a relatively high rate.

Whatever it is, cash is better always because there is no interest will be charged. But, would you like to carry a bulk of cash in your bag or in your pocket?
The solution is use your debit card.

That’s all for today. Hope you have gain some basic knowledge regarding credit and debit card. For further details please get all necessary info from the nearest bank.

Lastly, next article shall focus on how to choose the best prepaid fuel cards. Hope you will enjoy all the benefits.

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