Although a debit card looks just like a credit card, it works quite differently from a credit card.

Difference Between Debit and Credit Cards

It is possible to use a debit card as a credit card in most of the cases such as in gas stations, restaurants, and many other merchants. But the difference between the both is that a debit card instantly withdraws

money from your bank or investment account to pay for any purchases made with the card, and thus, there is no credit involved.

In contrast, credit cards allow a customer to make purchases until a set spending limit is reached, after which a statement will be sent out with the balance and available payment options.

When using a debit card, the purchases are instantly deducted from the consumer’s account, and thus the consumer never spends more than what they have available in the associated account.

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The associated card issuer, from time to time, issues convenience checks to credit cardholders by email. In fact, most consumers receive them at least once a month. Although these may seem tempting, and look like “free money”, they are far from it. Thus, make sure you understand all the terms and conditions before you use them.

How Convenience Checks Work

It is possible to use convenience checks like any other check. You can give them to whoever accepts checks as payment, including merchants, family, friends, or yourself if you wish, to deposit funds into your own checking or savings account.

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When it comes to credit cards, American’s are least educated people around the world. Our knowledge about them comes mostly from friends and family or credit card sales people. After a long search on forums and blog comments I have come up with the list of 10 things that most of people should know about their credit cards and they don’t. It’s my contribution to help you learn more about your own credit card rights and providing you means and methods to protect them

1) Your Credit Card is Not Valid Till  You Sign it

There is a panel on the back of your card that says “Not Valid Unless Signed”. A large number of people ignore this or just write  “SEE ID” or “CHECK ID”. They become very shocked when some diligent merchants refuse their card.

Let’s have a look at what VISA’s procedures says about what should happen when a customer presents an unsigned card:

1. The merchant will ask for customer’s ID like Driving Licence or Passport.
2. Customer will be asked to sign the card. If he signs it, the signature on the card will be compared to the signature on his ID.
3. If customer refuses, the card will not be accepted.

It is a known fact that most of the merchants don’t follow this policy, but some like UPS are quite strict.

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