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

The major difference between a credit card and a debit card is how they are funded and how each transaction is processed. A credit card is a form of loan given to the cardholder by a financial institution, such as a bank, credit union, or other lender. The cardholder then uses the credit card to purchase goods and services and is responsible for repaying the loan, usually with interest. The financial institution will charge a fee for each transaction processed on the credit card. A debit card, on the other hand, is connected directly to the cardholder’s bank account. When the cardholder uses the card to make purchases, the money is immediately taken out of the bank account, with no additional fees or interest. Debit cards are usually associated with a checking account, and can also be used to pay bills. In New York, credit and debit cards are subject to the same laws and regulations. Both cards must follow the same guidelines when it comes to consumer protection, disclosure of terms and conditions, and dispute resolution. It’s important for consumers to understand the differences between credit and debit cards so that they can make the best decision when using either one.

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

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