Credit cards and debit cards are the most widely used non- cash means of payment in Germany and the USD area. But where exactly are the big and small differences? What are the advantages and disadvantages of the card types?
The main difference
Any amount spent with the debit card will be debited directly from the checking account. The amount issued by credit card initially charges the credit line, and is collected by credit card statement at the end of the month.
A different billing mechanism is pursued with a debit card than with a full credit card. If a holder pays with his debit card or withdraws money from the machine, it will be withdrawn directly into his account.
Credit card holders have a credit line and can use their card with a high level of acceptance at home and abroad. All transactions made on the card will be debited at the end of the month.
The main difference between a credit card and a debit card is that the latter has no credit line. All sales are collected directly from the owner’s account.
Debit card equal to Visa card?
Both terms have long been used interchangeably. In the meantime, however, care must be taken with the exact name of debit cards, since there are also debit credit cards. It is therefore important to compare three cards with one another in order to find the most suitable means of payment.
Debit or debit card
As already explained, all payments are immediately debited from the account when paying or withdrawing money with a debit card. There is no credit line and the use is often restricted to Germany or the USD zone. The card is not accepted for online shopping; a current account is required to apply.
Full credit card
With a fully-fledged credit card, a credit or credit limit (depending on creditworthiness) agreed with the bank can be exhausted. The debit is made at the end of the month based on the card statement. Credit cards come from global providers and are accepted worldwide. Online payment is possible, a card account is also sufficient, a current account is not absolutely necessary.
Debit credit card
The debit credit card differs from the classic debit card in its worldwide acceptance and the ability to pay online. Regardless of the name, there is no credit line associated with the card. A checking account is absolutely necessary.
As with a classic debit card, sales are debited promptly, but the transaction runs from the cardholder’s bank to the recipient’s institute. The debit credit card differs from a normal credit card in that there is no deferred payment, which is granted by the credit line.
The worldwide application with full control of costs is advantageous. Online shopping is also easily possible with a debit credit card.
If you are looking for a means of payment with excellent acceptance and optimal cost control, you should prefer the debit credit card to the conventional debit card.
Advantages of a debit credit card
The debit credit card is also issued with a poor credit rating, while a full credit card requires optimal Credit bureau information due to the credit line. Debit credit card holders therefore have a wide range of cards from world-famous providers without making any credit commitments. These cards are accepted worldwide, even by car rental companies.
In Germany, an Visa card or conventional debit card meets all requirements. However, those who often go on vacation abroad or like to shop online are better served with a debit credit card. Due to the absolute cost control, the cost traps given with credit cards are avoided. The debit credit card is a variant without borrowing and is now increasingly widespread in Germany.