Understand Your Credit Card and How it works
Credit Card vs. Debit Card
Credit card and the debit card are useful to make purchases without taking out some physical bills from their wallets.
The two cards also require the signature of the cardholders when making transactions. there are differences between these two cards, and the most obvious is the source of the funds used for the purchases.
A credit card uses funds from the bank that is verified using the owner’s credit line. When applying for a card, identification is made in order to create an account with the credit card holder’s name. Meanwhile, the debit card takes the money straight from the card owner’s bank account.
A credit card holder receives a statement of account each month, detailing the purchases or cash advance loans made on the card. The debit card holder does not receive any billing statement because the money used for making purchases was already taken at the time of purchase from his or her bank account.
A credit card can inuring charges + taxes especially if the amount borrowed is not returned in full within the given grace period.
The debit card does not charge any fee because the purchases are paid in real-time through the owner’s bank account.
Credit Card ගැන දැනගන්න - ITN Digital with LK Domain Registry - Card Part -1
Credit Card ගැන දැනගන්න - ITN Digital with LK Domain Registry - Card Part -2
By Subash Chandra BowseMBA, PMP, ITIL
