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

Credit cards and debit cards are both forms of electronic payment that are widely accepted by retailers. However, there are some key differences between them. Credit cards are issued by financial institutions and allow the cardholder to pay for goods and services on credit, meaning that the cardholder does not have to pay the full amount right away. The cardholder is then responsible for paying back the full amount, plus any interest and fees that have been charged. In Illinois, the Credit Card Responsibility and Disclosure Act regulates the terms and conditions of credit card agreements in order to protect consumers. Debit cards, on the other hand, are linked directly to a bank account and allow the cardholder to access the funds in their account to pay for goods and services. When a debit card is used at a retailer, the funds are immediately withdrawn from the cardholder’s bank account. In Illinois, the Electronic Funds Transfer Act regulates the use of debit cards to protect consumers and their financial information. In summary, the main difference between credit and debit cards is that credit cards allow the cardholder to access funds that are not immediately available, while debit cards allow cardholders to access the funds that are already in their bank account.

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

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