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Debit card

There are major three of debit cards:

• Visa
• Mastercard
• Maestro

When people choose to pay with any of the above, the amount they spend gets deducted directly from their bank balance. All types of debit cards function in a similar way: the customer pays with their card (through chip and PIN, contactless, via telephone or online) and then the money withdrawn directly from the account.

Debit cards can be useful as an alternative for carrying cash, but research shows people spend more on impulse with plastic, as they`re less restricted.

Credit card

Credit cards are similar to debit cards but the key difference is customers paying with credit i.e., amount will paid after sometime in future date.

When someone takes out a credit card they`ll be given a credit limit - the amount they`re allowed to spend and when they use it they`re agreeing to repay the balance plus interest.