Using debit and credit cards and their differences

The debit card is a financial instrument linked to a bank account that allows operating with the institution through automated teller machines (check balances, make deposits or cash withdrawals, pay services and send transfers among other transactions) or make payments in different stores. Imagen alusiva sobre cómo usar tarjetas de Débito y Crédito

The card main characteristic is that the amount used is automatically deducted from the holder´s account; therefore, the account must have the necessary funds available for use.

The credit card is a payment instrument that mast be administered by a financial institution or a credit card company and it shall be granted to the applicant if he/she meets the requirements. The institution shall provide a credit amount to the credit card holder to operate and such amount shall be connected to the applicant´s income.

Unlike debit cards, the funds to be used in the case of credit cards must not be previously credited in the account, a debt is automatically generated as the credit card is used to withdraw cash or make payments.

Generally, this debt must be cancelled monthly whereof the institution sends a credit card summary of all the transactions effected, expiration date and outstanding amount.

This amount may be cancelled in whole or in part and the outstanding debt shall accrue interest.

A credit card advantage is the possibility of paying in instalments.

 

Debit card

Credit card

Does it grant cash?

Yes

The money must be previously deposited in the account

Yes

Hasta el límite de crédito otorgado

Can it be used to pay goods and services?

Yes

Yes

Does it grant credit?

No

Yes
Upon expiration, the outstanding balance accrues interest

Which is the payment method?

Instant debit on the account

Monthly payment upon reception of the credit card statement

Is there a tariff for the use of the card?

Yes

Yes