The main difference between a debit card and a credit card is the method of payment. On a debit card, the payment is charged directly to the holder’s checking account. Thus, they only allow collection up to the limit of the funds in the account. With the credit card it is possible to pay even if funds are not available, since it is possible to postpone the payment until the following month. In this way, the holder contracts a debt with the bank.
Before granting a credit card, the bank studies the viability, making sure that the client is solvent and assigns a maximum credit limit for that card. The credit can be returned in different ways: at the end of the month (a set day of the month following the one in which the purchase is made), by means of a percentage (which we will disburse every month) or a fixed fee (this modality is known by the name of revolving, and consists of paying a fixed amount established).
Credit cards allow you to finance: pay in installments and make your purchases without having to disburse the total payment as long as the limit granted by the Bank is not exceeded. This implies that interest is charged to the holder in the case of deciding to postpone payment. On the other hand, with debit cards, the amount is charged directly to the cardholder’s account, and is deducted directly from the balance.
Credit card vs debit card at the ATM
There are also differences if you want to withdraw cash at an ATM. If you use the debit card at an ATM of the financial institution that issued it, normally, you will not have to pay any commission. On the other hand, if you withdraw cash with your credit card, it is possible that the bank will charge you interest for advancing that money. Withdrawal of cash by credit card is against the credit limit granted by the bank and not against your checking account.
On the other hand, credit cards usually have a series of free insurances that, for example, protect you in the event that you buy a defective object.
Both debit and credit cards are very practical in your day-to-day life and, in the case of the latter, they are a very good option in case you need financing for unforeseen events or purchases of large amounts.
Use of credit and debit cards | Frequent questions
What is a credit card?
It is a means of payment with which, without the need to bring cash, several operations of various kinds can be carried out, up to a limit amount.
What is a credit card good for?
It is used for payments in affiliated establishments, such as supermarkets, department stores, pharmacies, hospitals, etcetera; You can also make purchases via the internet or by phone, make hotel reservations, have cash at ATMs, pay for services automatically such as cell phones, cable services, among others.
How can I get a TDC?
You must go to any bank branch and fill out the corresponding application, accompanying it with proof of income, official identification, (IFE, PASSPORT) and proof of address.
What is the credit limit of my TDC?
It is determined by your income level, your credit history, that is, if you have previously used another type of credit such as a car mortgage or a commercial home card and if you have paid on time as well as if you have more credit cards.
How can I increase the credit limit of my TDC?
Generally, using your card properly and paying on time, your bank can increase the credit limit based on your good credit performance and the increase in your income.
In which businesses can I make payments with the TDC for the acquisition of goods or services?
In practically all businesses that have a sticker indicating that they accept a credit card (VISA, MASTERCARD).
How can I find out the balance due on my TDC?
It appears on the account statement that must arrive monthly before the date established by your bank as the limit to pay.
How do I know what is the interest rate that the bank will charge me for the unpaid balance of my TDC?
The information appears on your account statement duly itemized, if you have any questions, you should go to the nearest bank branch or call the Call Center of your bank.
What are the different means of paying my TDC balance?
You can go directly to the bank or if you have a checking account, request that your minimum payment be automatically charged.
Is it correct for commercial businesses to charge an additional commission for paying with TDC?
No, the establishments that do so are falling into a discriminatory practice towards credit card users, so the bank to which the terminal belongs must be informed so that it calls attention to your establishment.
Can I use my TDC outside the country?
Virtually all cards issued in the country are accepted abroad.
Can I withdraw cash from an ATM with my TDC? Does it have any cost?
Yes, although the cost of withdrawal varies from bank to bank.
If you go to an ATM of a bank other than the one with your credit card, they will charge you a commission for using their ATM.
Debit cards (TDD)
What is a debit card?
It is a means of payment generally linked to a savings or checking account, the advantage it has is that you do not load cash and you only spend what you have in the account and you do not pay interest.
What is a debit card good for?
Like credit, it is used practically to pay in any establishment such as self-service and department stores, hospitals, schools, pharmacies, etc.
How can I get a TDD?
Opening a savings account, a checking account or a payroll account at the bank of your choice.
Can I use my TDD abroad?
If generally all debit cards have international acceptance
What is the maximum amount to make purchases with my TDD?
The balance you keep in your account.
How many withdrawals can I make from an ATM of my own bank without being charged a commission?
It varies from bank to bank but the generality charges a commission until after the 10th withdrawal.
What is the maximum amount of cash I can withdraw from an ATM with my TDD?
In some banks the limit is $ 4,000 and in others it is $ 5,000. daily pesos.