Credit and debit cards are very similar and even they are accepted at the same places. Many novices still find them similar because they are not clear about their basic difference and usage. Debit and Credit card both are for customer's convenience and the fundamental difference between them is their destination to pull the money. In Debit cards money comes out directly from your current bank account and no interest is charged unless you reach your overdraft limit whereas in credit cards charges are transferred to your line of credit and interest is charged if you don't clear your credit amount at the end of the fixed time period. Debits are moreover like a cheque whereas credits are like personal loan.

Debit cards draw money directly from your account when you make any purchase. In this case the merchant sends transaction id to your bank and later on the amount is transferred to the merchant's account. That is why it is necessary to keep a running balance in your account. Debit mastercard are more popular because they allow consumers to live within their means and they do not have any annual fees. They are either connected to your bank account or are prepaid ones. On the other hand, credit cards are kind of a loan and allow you to borrow money from various local merchants in small amounts.

These cards even charge interest on your purchase amount but that happens only in case when you fail to pay the amount within your grace period. For Australian customers a reliable website is available, i.e. debitcard.com.au to render information related to credit and debit cards. This site even helps them in finding out the best card as per their requirements. Debit Mastercard and Visa Debit are accessible here and before buying customers can even compare their services to select the suitable one.

Some of the basic comparisons between credit and debit cards are:

€ Credit card can only be used as credit card but debit card can be used as both credit and debit.

€ In credit cards users are supposed to pay additional interest on the amount borrowed, which is no where applicable in case of debit cards.

€ Responsible usage and payment of credit card can improve your credit rating whereas all these things do not affect your credit history in case of debit cards.

€ In debit cards higher amount of risk is involved because anyone can easily carry out transactions and can drain the money from account. On other hand such risks are very low in credit cards.