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

The primary difference between a credit card and a debit card is the way the cardholder pays for goods and services. A credit card is a type of loan with a credit limit. When you use a credit card to purchase goods or services, you are borrowing the money from the card issuer and must repay the debt with interest. A debit card, on the other hand, is linked to a checking account, and when you use it the funds are taken directly from your bank account. In Montana, both credit cards and debit cards are subject to credit card laws which generally protect the consumer from unfair practices. These laws include disclosures of fees and rates, a provision for the consumer to dispute charges they feel are inaccurate, protection from unfair or deceptive advertising, and limits on when a card issuer can change terms and conditions of a cardholder’s agreement. Debit cards may also be subject to additional limitations in Montana, such as a $50 daily maximum on cash back transactions. Furthermore, credit cardholders are usually protected from certain liability for fraudulent charges, while debit cardholders may be responsible for some or all of them. Overall, credit cards and debit cards are similar in many ways, but the primary difference lies in the way payments are made for goods and services. Credit cards are a type of loan, while debit cards are linked to a bank account. In Montana, both credit cards and debit cards are subject to credit card laws which protect the consumer from unfair practices. Additionally, debit cards may have additional restrictions placed on them.

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

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