Money debit versus credit cards · Debit versus credit cards in Money
All Destinations | Europe | Asia | North America | Africa | South America | Oceania | Hotels
Debit versus credit cards in Money
Debit versus credit cards in Money
Debit cards are linked directly to a bank account and immediately deduct the amount of the purchase or withdrawal from the account. Credit cards are cards that are not linked to an account with funds in it, but that instead charge against a credit line, which must be repaid at a later date. If the charges are not repaid before the end of a grace period (usually 0-25 days), interest will be charged.
ATM-only cards (aka ATM cards) (often without a Visa or Mastercard logo) are intended only for use to withdraw cash at ATMs. See "Debit and ATM cards: Risks/trade-offs" below.
When using an ATM to withdraw cash, it is much more expensive to use a credit card than a debit card. Using a credit card, you will typically be charged a cash advance fee of ~3% on top of foreign exchange and other transaction fees. In addition, most card issuers will start charging interest on your cash advance the day you pull money from an ATM (i.e., they won't give you a grace period) unless you have a credit balance on your account. In addition, the interest rate for cash advances is generally much higher than for purchases. In most cases, cash advances are limited to a small portion of your overall credit line.
Despite the fees you or the merchant pays, when making point-of-sale purchases, it is usually better to use a credit card than a debit card. If your card is stolen, you can easily dispute the charges on a credit card, while a stolen debit card may lead to an overdrawn bank account requiring many additional hassles (again see Risks/trade-offs..." below). Credit card companies will also protect you if you are charged more than you agreed to pay, if you pay for something and never receive it, or if your card is cloned (duplicated) without your knowledge and then used for fraud without being physically stolen. You'll often receive a better exchange rate if you have the merchant charge the amount in local currency. That way, you receive the bank's exchange rate...usually substantially better than that offered by merchants.
Credit cards also may include other benefits such as cancellation insurance for flights (usually only in the case of serious sickness), theft or loss insurance for goods (usually only if stolen within 90 days of purchase and a proper police report is filed), collision insurance for rental cars, and emergency health insurance in certain situations while you are travelling.
Credit cards may provide rewards programs that give you free flights or cash back after a certain amount of spending. The cards may be linked to a frequent flyer program. If you have an American Express card, in case of a lost or stolen card, you can obtain cash advances and replacement cards easily, by visiting and American Express Office.
The Most Frequently Asked Travel Questions about Money
Where To Stay & Best Hotels in Money - updated Jun 2024
SAVE up to 75% on Last Minute deals! Search for discount Money hotels, motels, apartments, hostels, guest accommodations and vacation resorts. Book now and pay at the hotel. Instant email confirmation!
>>> SEARCH FOR DEALS <<<
WHERE TO TRAVEL NEXT IN 2020
Money Travel Guide from Wikitravel. Many thanks to all Wikitravel contributors. Text is available under Creative Commons Attribution-ShareAlike 3.0, images are available under various licenses, see each image for details.