Bank cards differ in how they are used, their features and their fees. Chief among them are debit cards and credit cards, two of the most widely used payment methods in everyday transactions.

Although both allow electronic payments and cash withdrawals, there are fundamental differences between the two, particularly in the source of funds, how repayment works and the fees charged for use.

In this report, Banky explains the difference between a debit card and a credit card, the main benefits of each, and how to choose the right card for your needs.

First: What is a debit card?

A debit card is linked to the customer's bank account, and the value of purchases or cash withdrawals is deducted directly from the balance available in the account.

Main benefits of a debit card:

  • Cash withdrawals from ATMs.

  • Purchases at stores and points of sale.

  • Online electronic payments.

  • No debt to repay later, since transactions are made from your available bank balance.

  • Helps you track expenses and control spending in line with your account balance.

Second: What is a credit card?

A credit card is a card through which the bank lets the customer use a pre-set credit limit to buy products and services or make financial transactions, with the customer repaying the amounts used at a later date according to the statement and the bank's terms.

Main benefits of a credit card:

  • Purchases without needing a sufficient balance in your bank account at the time of the transaction.

  • A grace period for repayment, according to the card's terms.

  • Installment plans on purchases at merchants contracted with the bank.

  • Rewards programs, points and discounts, depending on the card type.

  • Use for local and international purchases within the set limits and rules.

What is the difference between a debit card and a credit card?

The key difference is that a debit card relies on your own money already in your bank account, while a credit card lets you use a credit limit provided by the bank, with an obligation to repay the amounts used.

Choosing the right card therefore depends on how you use it, whether you prefer to spend from your available balance or to benefit from credit facilities, grace periods and rewards programs.

How do you compare cards and pick the best one for you?

Because choosing the right card depends on more than its type, Banky lets you compare more than 400 bank cards from different banks, helping customers find the card that matches their needs and means.

By comparing on Banky, you can find out:

  • The types of cards available and each card's features.

  • Withdrawal and purchase limits.

  • Card issuance and renewal fees.

  • Fees and commissions linked to usage.

  • The lowest bank card fees, and the best choice on cost.

  • Extra benefits and offers that banks provide to cardholders.

With Banky's comparison tool, compare more than 400 cards, learn their details and fees, and choose the card that best suits your usage and budget.