Debit or credit card, with which to pay?

The differences between the debit card and the credit card are mainly twofold. The first concerns when and how the account is debited, the second related services.

On a daily basis, on vacation, how to manage your expenses? Is it better or more convenient to use a debit or credit card? The question arises all the more since the debit card has evolved a lot. Update and advice.

Attention to the limits of the different cards

The differences between the debit card and the credit card are mainly twofold. The first concerns when and how the account is debited: when paying with the debit card, your account is immediately debited (provided the amount is available on your account), whereas if you pay with the card credit, you pay at the end of the month or in installments. The second concerns linked services: the credit card is the only one, for a payment, to offer certain insurances (loss, non-receipt of a purchase, cancellation of a trip), assistance services, etc., according to the Terms of use. Note again that the debit card has a daily limit and a monthly limit. These two limits vary by institution. The limit of your credit card, in turn, depends in particular on your financial situation.

New debit card features

The debit card has recently evolved, in particular to better respond to new consumer habits (increase in online purchases). Thus, the new debit card acts as 2 in 1, as it offers functionalities previously reserved for the credit card, such as online payments. So what to do on a daily basis? You can use both, since they are used for purchases in stores as well as on the net.

What to do abroad?

And abroad, on vacation? The mix is ​​a good formula, without forgetting… a little cash in the currency of the country of destination. But the credit card remains the ideal partner, because it offers insurance for travel (including hotel reservations) or for substantial expenses (plane tickets).

Article published in 24 Hours, February 20, 2023