So, are you going to charge or credit? Have you ever wondered which one to use, or intend to apply for a card and still don’t know the difference of functions? In today’s post we explain to you and leave tips on when is the best time to use each one.
Why does the shopkeeper request this information? Well, debit or credit are different functions, and for that, the card machine needs to know which one to forward the payment. An erroneously chosen function will be canceled. Basically we can distinguish credit as: buy now and pay later. Already the debt, buy now and pay now!
How the debit function works
This means of payment is linked to a checking account, salary savings or other type of bank. The customer when passing the debit card in the machine has the amount automatically discounted from your balance. An important feature for those who have doubts is that this function does not allow the installment of purchases. We can then classify it as a spot purchase. An example of this card is Visa Electron.
One of the benefits of debt is that you do not need to withdraw, so there is no need to carry cash in your wallet. Much more security right! We indicate the debit card for small everyday purchases such as restaurants, bakeries, supermarkets. Oh and the tip for those who use this type of payment, is always asking for that discount at the time of shopping, since we are talking about a cash purchase, right?
How does the credit card work?
This is the dream of most people. This is because it is the opposite of debit card. The credit function does not require a bank account balance. The customer buys today and has up to 40 days to pay the invoice, which arrives at the consumer’s address monthly. If you are about to apply for your card, read about the expiration of your card statement and be smart not to get caught up in debt. Enjoy and see here these credit cards.
Another very nice benefit, besides not paying your purchases on time, is that you can pay larger amounts, several times and without interest. In this function you can spend the limit that was offered to you by the financial institution, based on your income report, consumer history, etc. If you want to know more about how the bank approves the customer, read here.
We advise you to use this payment for large purchases, with the possibility of installments. Or even in online stores, with a world of offers, enjoy shopping with a credit card.
There is still the multiple card, which contains the debit and credit function. Usually offered to account holders. Just inform the shopkeeper the payment method.