Debit Cards vs Credit Cards

by Wesley Gordon There is an ongoing battle between debit cards and credit cards. Which one is the most preferred payment option? Credit card is a form of payment wherein issuers lend money to the consumer to be paid to the merchant. It allows the consumer to revolve their balance at the cost of having interest charged. On the other hand, a debit card is an alternative payment method to cash which is directly withdrawn from the cardholder's bank account. It is almost as good as cash. Most banks prefer debit cards over credit cards because you are charged with a small transaction fee everytime you use a debit card. Some banks even offer rewards points redeemable for prizes each time you use your debit card. However, businesses who plan to accept debit cards as form of payment need to add a PIN pad in addition to a credit card terminal used to process transactions. When it comes to credit cards, they are used by customers especially when they are low on cash. Credit cards are convenient and hassle free and offers more protection compared to debit cards. The Fair Credit Billing Act protects the customers from fraud charges if the card is lost or stolen. Credit cards also allow you to be able to purchase in large amounts. This is because it is easier to apply for a debit card compared to a credit card, so it's not an effective way of determining whether the customer is a good risk. To be able to accommodate different forms of payment options, accepting both credit cards and debit cards, find a supplier that can provide both of these solutions. You will see how advantageous this can be.   (Wesley Gordon is a 42-year old Online Marketing Director for a Payment Processing Industry. He's been in the business for over 15 years now, traveling around the world, attending lectures and seminars. Aside from spending time with his wife and three kids, he also blogs. His blog can be seen at <a href="http://acceptcardsnowblog.blogspot.com/">http://acceptcardsnowblog.blogspot.com</a>.)

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Debit Cards vs Credit Cards