What is the difference between a VISA/MASTER credit card and a VISA/MASTER debit card?
VISA/MasterCard Credit Cards vs. Debit Cards: Key Differences The key differences between VISA/MasterCard credit cards and debit cards lie in how transactions are processed, the source of funds, and the cardholder's financial responsibilities: 1. Source of Funds Credit Card : When you use a VISA or MasterCard credit card, you borrow money from a credit line provided by the card issuer. You must repay this amount, typically with interest if the balance is not paid in full within the grace period. Debit Card : When you use a VISA or MasterCard debit card, money is withdrawn directly from your bank account. No borrowing is involved. 2. Payment Process Credit Card : You can pay for purchases immediately or over time. There is a billing cycle (usually monthly), and you receive a statement showing the total amount owed. If you don't pay the full amount by the due date, interest is typically charged on the remaining balance. Debit Card : Payments are deducted immediately or withi...