What are the advantages of a debit card over a credit card

Main advantages of bank cards

A significant difference between a debit and credit card can be seen in the annual maintenance fee. Debit cards may have a zero fee or a negligible amount, while a credit card can cost several thousand RUB.

Important advantages of bank cards:

• All funds are stored on the card. Cash can only be withdrawn at an ATM. Therefore, all types of cards keep your savings and borrowed funds safe, preventing their loss.
• Bank cards can be used to pay for services and make purchases online. For example, booking plane tickets or buying goods in an online store.
• When traveling abroad, there is no need to carry cash. It is enough to deposit money into the account, and upon arrival in another country, the account will automatically convert to the dollar or euro equivalent.
• With a debit card, it is possible to earn interest on your own savings. A similar procedure is provided for credit cards if the loyalty program allows for the placement of cash in the card account.
• Debit cards have overdrafts. Some credit institutions provide a small loan if you do not have enough of your own savings in the card account. That is, you receive a loan for a few weeks and can use the debit card as a credit card element. As a rule, an overdraft is granted for no more than 2 months of your salary and for a period of no more than 2 months.
• If you lose control of your bank card, just call the credit institution, and the bank will block the card. Next, you need to order a reissue of the bank card. The funds remain safe and sound.

This is the main pool of positive properties of cards and their main distinctive features.

At the same time, there are negative aspects to using bank cards.

• Despite the abundance of terminals and equipment for accepting bank cards, many still accept cash. For example, a one-time trip on a bus or trolleybus requires payment for the ticket in cash.
• Cash withdrawals with debit and credit cards involve a small commission. While you can withdraw from a debit card at your own bank's ATM without interest, a credit card involves a high fee for cash withdrawals, even at your own bank's ATM.
• Low level of security. Some banks still issue cards with a low level of security. In this case, it is recommended to provide additional schemes against unauthorized access to your banking product.
• To protect the card and conduct transactions, you must remember the PIN code. This is a numeric sequence, usually 4 digits. If you forget this code, the bank will offer you a reissue, or a fee will be charged for changing the PIN. It is advisable to memorize this code and keep it "in your head"; otherwise, writing it down in an accessible place, including on the bank card itself, can lead to a thief using your card in case of theft or loss.

The main feature for all cards is ensuring security. Never give your card to anyone, as according to the terms of credit institution agreements, only the owner of the banking product is responsible for the use of the plastic.

Advantages of a debit card

• Let's describe important points and indicate the difference between a debit and credit card in everyday use. Positive aspects of a debit card:
• A debit card is issued with only one document – a passport. If you are applying for an overdraft, the conditions are the same as for a credit card regarding the issuance of the banking product.
• The maintenance fee is the lowest or non-existent.
• You can withdraw cash at "native" ATMs without any commissions.
• You can make payments both online and in physical stores that have special equipment for reading card information.
• You can transfer money to another person using the bank's own ATMs or online banking.
• Several banks offer interest on personal savings held on the card.
• The banking product can be used when traveling outside of Russia.

A downside of a debit card is the annual maintenance fee, though this rule does not apply to all financial institutions in the country.

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Advantages and disadvantages of a credit card

When deciding whether a debit or credit card is better, let's look at the pros and cons of a credit card.

• The card account contains funds that belong to the bank.
• You can withdraw cash, but it is extremely disadvantageous as banks set fees and commissions for these transactions.
• You can take advantage of the interest-free grace period.
• You can repay the debt early.
• Partial debt repayment is allowed, but the bank sets a minimum payment.
• The card is designed for travel within Russia and abroad.

Additionally, there are cashback loyalty programs when you make cashless payments at partner stores. All credit organizations set an interest rate for the banking product. The average rate ranges from 9% to 34%. Paying interest is comparable to loan terms. When getting a credit card, you need to provide additional documents and information confirming your solvency. If you fail to fulfill your obligations under the allocated credit line, the bank charges interest and penalties.

Final information

Summing up the available data and concluding which card is better—debit or credit—we take into account that each card type has its own distinct characteristics.

• Debit cards are a system where you can not only store your savings but also receive your salary. Organizations participating in payroll projects often cover the costs associated with the annual maintenance of the banking product. To get a debit card, it is enough to provide only a passport. Rejections for issuing debit cards are almost non-existent, except in cases of fraud.
• Applying for a credit card is much more complicated, as obtaining the banking product requires financial proof of the applicant's solvency. In this case, you will need salary information, copies of employment records, and other information confirming your solvency.

You can use remote channels to get cards. We recommend using our financial product matching service, where you can apply for a card online.

Please note that a card with an overdraft is considered a debit card, but it does have some credit card features.