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Banking Awareness : Debit card and credit card

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Debit card
A debit card is a card that allows you to access your bank account from any place at any time. They are easy to use and bring you the convenience of simple cashless transactions. Debit cards have the following features and components that help you conduct banking transactions:  
  • Debit Card Number: this unique number identifies your debit card and is linked with your bank account
  • Expiry Date: Usually in an MM/YY format the expiry date specifies the period of validity of the debit card. The debit card is disabled one it crosses the expiry date. While conducting online transactions with your debit card, you will be asked to input the expiry date, along with the debit card number and CVV
  • CVV: or Card Verification Value is a 3 digit number located on the back of your card near the signature strip. The CVV helps you authenticate the use of your debit card while conducting online transactions.
  • PIN: you will receive the secure PIN no. along with your debit card. You can change your PIN online or at the nearest YES BANK ATM. This is a number that you will be asked to input at POS terminals and ATMs to help secure your transaction. You should not share your PIN with any person.


Credit Card

A credit card is a wallet-size plastic card containing electronic data that can be interpreted by a reading device for credit cards. The data include details about the owner of the credit card, the account number etc.

An owner of a credit card can use to the card as payment for goods or services without having to pay in cash or issue a check.


Differences between a debit card and credit card


Debit Card Credit Card
Only the funds available in the current/savings account can be used to make transactions. Credit available in the credit card account can be used to make transactions.
The availability of funds is based on the investment made to the account. The availability of funds is based on the credit limit set by the lender.
Interest is earned on the deposit available. Interest is levied on the outstanding balance.
EMI facility is not available on debit cards. EMI facility is available on credit cards.
No repayment required. Repayment of outstanding amount can be made either as revolving credit (payment of minimum due amount on the credit card account or payment of more than minimum due on the card and less than total outstanding amount) or the borrower can choose to pay the total outstanding amount by the due date.
Charges include joining fee, processing fee, annual fee, etc. Charges include joining fee, processing fee, annual fee, late payment fee, prepayment penalty/ foreclosure charges.
Monthly bank statement is sent to the borrowers. Monthly credit statement is sent to the borrowers with details of bills, transactions, total credit outstanding, minimum amount due and due date of payment.
Any savings/current account holder can avail a debit card. In order to avail a credit card, the applicant must fulfill the lender’s eligibility criteria. Factors such as the CIBIL score or credit history, existing relationship or transaction history with the bank, debt-to-income ratio, etc. affect the individual’s credit card eligibility and approval.
Fraud liability offered by the Bank/ financial institution is low in the case of a debit card. Unlike a debit card, credit cards come with high fraud liability and insurance cover for losses incurred from the theft and misuse of a credit card.



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