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

The primary difference between a credit card and a debit card is how they are funded. A credit card is a type of loan that is issued by a financial institution and it allows a person to borrow money up to a certain limit. This borrowed money then must be paid back with interest. A debit card, on the other hand, is linked directly to a bank account and is funded by money that is already in the person’s checking or savings account. When someone is using a debit card to make a purchase, the money is taken out of their account and is not a loan. In Georgia, there are rules and regulations that must be followed when it comes to credit cards and debit cards. Credit cards must be registered with the state and companies offering credit cards must be licensed with the state. Furthermore, agreements between credit card companies and consumers must comply with Georgia’s Credit Card Law which limits the fees and interest that can be charged. On the other hand, debit cards are not subject to the state’s credit card laws. In conclusion, the main difference between a credit card and a debit card is the way they are funded – credit cards are issued as loans while debit cards are funded by existing money in a bank account. In Georgia, there is a Credit Card Law that outlines the fees and interest that can be charged by credit card companies, whereas debit cards do not fall under this law.

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

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