What Are Debit Cards And Cash Cards And How Are They Different Than Credit Cards

Debit cards & cash cards

How is a credit card different from a debit card? A debit card lets you use money only from your bank account.

So when should you use your debit card vis-á-vis your credit card?

• If you have money in your account, it is advisable to use your debit card to avoid falling into a debt trap. However, if you are in need of credit, you will have to use your credit card.
• It is better to withdraw cash from an ATM using your debit card since no interest is levied on such withdrawals.
• For online transactions, debit cards are not as widely accepted as credit cards. It is, therefore, better to have a credit card for e-commerce transactions.
• A debit card is slightly less susceptible to frauds since your risk is limited to the amount of money available in your account.

A relatively-new financial product that has been introduced in the cards market is the cash card. This product offers the convenience of a debit card without the necessity of having a bank account. A person can buy a cash card off the shelf for a specific value and then use it instead of cash. The acceptability of cash cards is quite low as of now, but they provide a convenient alternative for people who are not eligible for or do not own a credit or debit card. A few popular cash cards available in the Indian market are Itz Cash, Done Cash and iCash.