ATM cards, Debit Cards, and Credit Cards are the digital cards offered by banks. These cards have their unique features along with limitations. Among them, an ATM is the most common as it can be used to withdraw money from an ATM machine. They are directly linked to your bank account however you can’t perform payments with this card. But people can use debit and credit cards to pay for online shopping. But most of them have confusion about Debit and Credit cards. Let’s learn about them in detail.
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5 Key differences between credit card and debit card
In terms of looks and online payment, debit and credit cards are the same but they share lots of differences. Let’s look at the differences in detail.
- Statement and transactions
A debit card enables you to conduct transactions by depleting the funds in your deposit accounts, but a credit card enables you to borrow money from a bank up to a predetermined limit. When you use a credit card, a bill or account statement is delivered to you after each billing cycle.
- Purchase process and allowance
Typically, a credit card only permits purchases; cash withdrawals are permitted with some limit and charges. However, anytime you use a debit card to make a purchase, the funds are immediately taken out of your account. Another thing is that a debit card allows you to withdraw cash whenever you need it, whereas a credit card requires you to pay your bank on a monthly basis.
- Privileges and security
When it comes to benefits, credit cards offer a wide range of alluring incentives in the shape of reward points, cash back, savings on dining and travel, etc. However, there are restrictions with a debit card. Speaking of security, credit cards come with more robust security features, whilst debit cards have less security compared to credit cards.
- What fees are applicable?
A credit card may be subject to a number of fees, which includes application fees, annual fees, late payment fees, check-bounce fees, etc. But you only have to pay fee for a year to debit cards.
You can be charged additional PIN regeneration fees if you ask for a NEW Debit Card PIN. Otherwise, a debit card is free when you open a savings account.
If any customer opens Sarbashrestha Bachat Khata account under ambassador, pride or partner, the customer can get 5 years free services like mobile banking, debit card, internet banking along with many other unmatched and unparallel features.
What to Use While Shopping- Credit Card or Debit Card ?
Coming to shopping, both credit cards and debit cards have benefits and drawbacks. Despite a narrowing security gap over the past few years, credit cards continue to dominate debit cards in terms of convenience. Using credit cards for the majority of your purchases is generally beneficial for most people.
Another aspect that makes a credit card great for online shopping is that it has a spending cap, which can help you in controlling your purchase habits, whereas a debit card doesn’t have one. But a debit card might be the best option if you are concerned about mounting debt. However, you must watch out for shopping scams.
All in all, a credit card is mostly used for online shopping, while debit cards are used for physical shopping.
Which Bank to choose to get Debit Cards and Credit Cards in Nepal?
Finding the No.1 Bank in Nepal may not be tiring task as you can find most people calling NIC ASIA Bank so. The bank aspires to provide its clients with premium banking products in order to bring the greatest joy in life. We ensure the utmost safety to our online banking as well as traditional banking facilities. Moreover, NIC ASIA is directed towards gifting innovation in digital banking in Nepal through its iServe and many other features. Adding to the list, we have credit cards and debit cards that offer numerous facilities to you.
Perks of Having NIC ASIA’s credit card or debit card
VISA Credit Card is another privileged credit facility of NIC ASIA Bank. This 5-year valid Credit Card limits up to 2.5 times of Gross Monthly Income, not exceeding NPR 500,000. The credit cardholder can also enjoy special discounts on shopping in specified outlets. We also offer Zero Percent Financing Facility(ZPFF) for VISA domestic credit card customers to ease their purchase of consumable goods/services in comfortable Equated Monthly Installment.
In terms of debit cards, the NIC ASIA Visa Debit Card can be used to make purchases at merchant locations using POS (Point of Sales) terminals and/or withdraw cash from ATMs that hold the Visa logo. With Debit Cards, you must be aware of Per Transaction Limit, Daily Transaction Limit, and Monthly Transaction Limit in Nepal and India.
[Read more about NIC ASIA Visa Debit Card.]
You can apply for both of these cards through a common digital channel, NIC ASIA Bank’s website
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