How well do you know your credit and debit cards?

Credit and debit cards have made financial transactions faster, simpler, and effortless. Although both financial instruments look alike, there is one significant difference between credit card and debit card. This distinction is that the debit card uses the money in your bank account and credit card purchases are more like a loan that you pay back on a monthly basis.

In order to use a debit card, you will need to have a specific bank balance, and this is not required for credit cards. Despite having poor penetration, the average occupant of a tier 1 or 2 city has at least one credit card and/or debit card in their wallet. However, not all users understand which one to use for their purchasing needs.

As a collaborative commercial platform, Innoviti offers several purchase options to the customer on both debit and credit cards. Each swipe on the innoviti terminal comes with a guaranteed cashback upto rupees 999. With a wide range of offers to choose from, the Innoviti terminal emerges as the preferred PoS machine in the market.

Credit card vs Debit card

Some key pointers to note are:

  1. Credit cards give you access to funds based on a predetermined line of credit, which has to be repaid within a stipulated period, often in monthly installments
  2. Debit cards take funds available in your bank account, and if there are no funds, you aren’t able to transact and your card is declined by default at payment terminals.
  3. Debit cards and credit cards offer the same level of protection and require personal identification numbers (PIN) and/or card verification value (CVV) for authorization, and also, they do not charge annual fees.

What is a credit card?

A credit card is issued based on the individual’s credit score and financial track record. It functions on the ‘line of credit,’ that decides the maximum amount a person can spend. Credit cards charge a monthly rate of interest for the money used, and these are issued by several banks. Typically the first 45 days of the billing cycle are not charged. After that, interest is charged on the total usage of funds.

Credit card charges

Credit card charges vary depending on the issuing bank, and each bank has a different interest rate. It could be anywhere between 0.5% to 2.5% per month.

What is a debit card?

A debit card is issued when an individual opens a bank account and it is given along with the cheque book by many banks as long as funds are available in the bank account. The card will be declined if there are no funds in the account.

Now that you’ve familiarized yourself with the two basic bank instruments, let’s explore some interesting but important facts on credit and debit cards.

Debit Card Charges:

Seldom are debit card owners charged a fee for their cards. However, each bank offers debit cards with specific specifications and services. For instance, some cards will have to maintain a mandatory minimum balance. Sometimes there are even certain limits on the monthly transactions of a debit card.

Ten facts about credit cards

Here are some facts that one should be aware of while using a credit card.

  1. Credit cards are issued by banks and other financial institutions even if you do not bank with them.
  2. Credit cards are accepted globally as long as they have a logo of a VISA, MasterCard, or American Express. However, you are charged a conversion fee for purchases made internationally.
  3. A credit card allows you to spend money based on the credit line. Sometimes overspending will be authorized.
  4. 100% of online and retail stores accept credit cards.
  5. Minimum payments are generally low; a certain amount must be paid within the billing cycle. However, interest rates can be high.
  6. Credit cards are given based on the credit score strictly.
  7. Anybody who is above 18 years of age is eligible for a credit card.
  8. Credit cards have an upper limitation for expenditure and are highly prone to declination.
  9. They are good tools for establishing a good credit score.
  10. They act as an excellent financial backup when an individual is strapped for cash.

Ten facts about debit cards

Everyone with a bank account will have a debit card issued by the bank—some facts to know.

  1. Debit cards are issued to account holders of the bank.
  2. They do not have any annual fees.
  3. An issuing amount is charged on the debit card.
  4. Debit cards can only be used when funds are in the bank account.
  5. They are more secure compared to credit cards.
  6. They can be used worldwide.
  7. It is available for anyone with a bank account, including teenagers.
  8. You cannot overcharge a debit card.
  9. You cannot add another person to your debit card facility.
  10. You can withdraw cash from any ATM in the world.


A credit card number is a 16 digits unique number along with a CVV code at the back of the card.

Since both look the same, it is difficult to identify. However, the debit card will have your home bank’s name on it.

Innoviti genie is a versatile tool that accepts a diverse set of debit and credit cards allowing the merchant to leverage several payment options tailored to fit the purchase needs of a given customer. Transacting at this terminal isn’t merely hassle free but is fast, reliable and eliminates the chases of the double debit burden that often plagues other PoS terminals. As a pioneer of the collaborative commercial platform, the merchant has at his disposal a world of brand and bank offers that is sure to keep drawing customers back to his store.