While debit and credit cards look alike, the two are very different from one another. To clear things up, here are the details:
| Debit Cards | Credit Cards | ||
|---|---|---|---|
 |
Available to virtually all checking account holders, as well as many share draft, savings and other accounts. | |
Adults 18 years or older can build their credit by using a credit card. |
|
Draw money directly from your checking account, helping you keep track of your daily spending. | |
Purchases are charged against a pre-approved line of credit. |
|
No additional processing or future bill payments are required on your part, which means no interest payments. |
|
Allows you the flexibility to make monthly payments for purchases over an extended time period. |
|
Offers two forms of security options: PIN-based and/or signature-based transactions. | |
Signature is the dominant form of transaction authorization in the U.S. However, some credit cards allow for PIN-based cash advances at ATMs. |
|
Debit cards are covered under the Electronic Fund Transfer Act, also known as "Regulation E." |
|
Credit cards are covered under the Truth in Lending Act. |
|
More and more financial institutions are offering rewards for using your debit card. | |
Many credit card companies offer you rewards for making purchases with your card. |
