Debit Card:
- It takes money directly from checking account.
- When your card is swiped, the funds are transferred from your account.
- Access to cash not only at ATM's but you can often get cash back at point of sale.
- No interest charges.
- Transaction could be declined if you try to spend more than you have in your account.
Credit Card:
- You barrow money from a lending institution and pay back some or all of it each month.
- When your card is swiped, the credit card company pays the vendor for the purchase.
- Make a purchase even if you don't have cash on hand or in your account.
- High interest must be paid to bank.
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