Upper middle class people are usually more often perform non-cash transactions, namely by using their financial card. And leave the old habits with carrying a lot of money that their bustle.
The most common type of card is a debit or credit card. Depends which card they have and want to use it.
A Debit Card based on the Wikipedia definition is an electronic payment card issued by a bank. These plastic cards, also called ATM cards, because the same function that can be used by most people who have a savings book in the bank.
Also to withdraw cash or transfer money in ATM machines is also the same way to use it.
While the Credit Card is commonly called a "debt card", because its function can be used to borrow money to the issuing bank with a certain limit and get paid before maturity.
Payment can be paid in installments or paid off at once. When late, you will be fined by a card issuing bank. Unfortunately there are still many people who are not familiar with the difference between debit cards with this credit card.
In terms of Mechanism
Both types of cards are both issued directly by the bank and must follow the rules applicable to the bank. Both cards also need PIN and signature when dealing in certain merchants. And also can do withdraw cash. But there are some quite striking differences between the two.
What are the differences? Check out the following reviews.
Debit Card :
- Issued by the bank for customers who open a savings account, and usually has a bank logo or network that has worked together. Like Visa and Mastercard.
- The customer must have a balance in the passbook, and the transaction
limit is based on the amount of the debit card owner's balance.
- There is no annual fee, and direct transaction costs are deducted from the debit card owner's balance.
- Withdraw cash made at ATM of the issuing bank, free of charge or free of charge.
- Still limited if used to transact online.
- Customer does not need to have a savings account in a credit card issuing bank.
- The customer does not need to have a balance in the savings account, because the nature as a card that can bring the loan. Have certain limitations, as well as in daily transactions.
- Charges will be sent each month, and can be paid in full or in installments. If paid in installments, then interest will be charged on the next bill in accordance with the policies of each bank.
- Draw cash at ATM is charged a high withdrawal fee.
- There is an annual fee fee, stamp duty and payment charge.
- Transactions on credit cards require a signature, while PIN is only used for cash withdrawals at ATM machines.
- If you make an online transaction, it takes the last three digits on the card.
Because they do not need to carry a lot of money when they want to shop and make transactions, both cards are the same as electronic payment cards, but these two cards have several different benefits, including:
Debit Card :
1. Moving savings: Having a debit card is like bringing your savings around because it can be used to withdraw money from your savings at an ATM machine or transfer to another account.
2. Practical: You simply go to the ATM, which is available everywhere and swipe the debit card to take money from your savings account, certainly with no nominal exceeding balance in account.
3. Can be used for shopping: Debit cards can be used for shopping by swiping cards on an EDC machine in every place, such as a store, supermarket, department store, salon to a particular restaurant that receives it.
4. No interest or penalty: The use of debit cards for shopping will not be subject to interest or penalty for being used when swiping the card comes from the debit card owner's balance.
5. No monthly installment: You will be free from monthly installments because the transactions you make are based on the amount of money in savings. Shopping will be immediately paid off your savings.
6. Can conduct transactions in bulk: Can conduct transactions in large numbers up to tens or hundreds of millions for not exceeding the balance savings.7. No debt: If using a debit card, you are not considered to be owed by the bank because the money you use is your savings.
Credit card :
1. Ease of shopping online: The rise of e-commerce sites by offering various products, which can be accessed via computer or smart phone (smartphone) facilitate credit cardholders because online shopping sites provide credit card payment facilities.
2. Many promos are offered: Every bank that issued a credit card, usually provide promo or discount shopping with the merchant to its customers. In addition, you also have the opportunity to get rewards from credit card issuers, either in the form of cashback, points to prizes directly.
3. Easier deals abroad: The most common problem faced when traveling abroad is when making transactions. If carrying cash, the risk of loss or exhaustion will be higher. However, with credit cards, transactions abroad will be easier and safer.
4. Shopping can be paid later: Each credit card transaction will be paid on the next bill. If all bills are paid in full and on time, you will not be charged interest. As for those who pay by installments, you also have the opportunity to get the installment without interest 0% alias, but only for certain credit services.
5. Can be used to pay for sudden needs: Conditions require sudden funds suddenly you may have experienced. Credit card is one solution to get funds to pay for unexpected needs temporarily and then you just pay it in installments.
6. Pay all bills: For credit card holders, you do not have to bother making phone, electricity, insurance and so on every month because by registering everything on credit card, you can pay directly every time the bill arrives.
7. Safer than abuse: No need to worry if your credit card is lost or stolen because your money will not be lost immediately because it can be tracked or blocked. While debit cards are more vulnerable to abuse because if blocking is not done immediately, then your savings will disappear, not left.
8. Make it easy to control spending: You will more easily control spending by credit card. The trick, record all the transactions you have done to match the expenses that use credit cards. If using e-statement, transaction history will be stored in email that can be accessed at any time.
Disadvantages of Credit and Debit Cards
Although it has many benefits, it turns out debit and credit card cards also have some shortcomings. This deficiency must be known us as its use in order to prevent or minimize losses in the future.
Debit Card
- - You can not shop or make transactions over balance in your account. It will be useless when you need big funds to surpass your balance in quick time, such as when paying hospital bills in large par.
- - Very minimal promo or offer from debit card issuing bank or merchant in cooperation with the bank. While many credit cards or even flood promos and offers.
- - Vulnerable abuse
Credit card
- - There is interest for every transaction. The bigger the transaction, the credit card interest will be greater.
- - There is a deadline or credit card bill payment deadline. If you are late to pay, then the interest that must be paid will increase.
- - When needing cash, withdrawing money at an ATM machine using a credit card will be charged interest higher than your credit card interest.
- - Vulnerable banking crime
After knowing and knowing the benefits and disadvantages, of course you can decide to keep using a debit card as a non-cash payment tool, or add to your collection of electronic cards, by making a credit card.
What makes a debit card easier is because you simply become a bank customer and make sure your balance is always filled so you can always use it.
Meanwhile, to have a credit card is slightly more difficult because there are several requirements that must be met, such as account books, payroll, ATM card and identity card.