Nowadays, making payments through cards has become so easy that people are adopting it readily. Be it a debit card or a credit card, everyone has some or the other card. But do you know that even though these two cards look similar, their functions are different? All those functions cannot be performed through a debit card which can be performed through a credit card.

When you use a debit card, understand that you are spending the money in your account. This card is linked to your savings or current account. The logo of MasterCard, RuPay, or Visa will be seen shining on it. You can withdraw cash from ATMs and make payments at shops through it. The good thing is that there is no interest on a debit card because it does not give credit.

Credit card: Expenses continue even when the pocket is empty

Now let's talk about credit cards. If you understand it, it is the 'credit partner' of the bank. You may not have money in your account, but you can do shopping, online payments, and all kinds of expenses through a credit card. But remember, this facility is not free. If you do not pay the bill on time, you may have to pay interest and penalty. And yes, you may have to pay a hefty fee for withdrawing cash from an ATM.

Annual fee and spending limit
While most banks do not charge any annual fee on debit cards, there may be an annual charge for credit cards. Spending limits are also different. On a credit card, you are given a fixed credit limit, while on a debit card, the bank has set a limit on daily cash withdrawals and POS (Point of Sale) spending. The debit card is linked to your savings account, while the credit card is linked to your financial institution or issuing bank.

Both are ahead in security.
Talking about security, both debit and credit cards have security features like OTP, SMS alerts, and PIN. You have to face these security features while shopping online.