Understand Your Credit Card and How it works
Credit Card vs. Debit Card
Credit Cards and debit cards 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 are verified using the owner’s credit line.
When applying for a card, identification made to create an account with the credit card holder’s name then 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 received any billing statement because the money used for making purchases already taken at the time of purchases from bank account.
A credit card can incur charges + taxes inthe event if the amount borrowed not returned in full within the given grace period.
The debit card does not charge any fee because the purchases 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
