Monday, July 25, 2016

Difference between Credit card, Debit Card and Smart Card

Credit Card Debit Card Smart Card
1. A Credit card is basically an electronic card with magnetic data strip or a chip, issued to customers by banks and other credit agencies. 1. Debit cards are magnetic strip and chip enabled cards, issued to customers by their respective banks. 1. A smart card contains a special embedded microprocessor, which is a computer processor or a microchip.
2. credit cards are lines of credit when you use a credit card, the issuer puts money toward the transaction.This is a loan you are expected to pay back in full unless you won't to be charged interest. 2. Any time you use a debit card to buy something, money is deducted from your account with a debit card you can really only spend the money you have available to you. 2. Smart cards applications benefit consumers where their life and business habits intersect with payment processing technologies.
3. credit cards in the U.S are not very secure and of themselves many still deted card technology.However consumers are not held liable for this poor security. 3. A PIN makes them secure so long as no one steals the card number and PIN as long as you don't lose the card itself.If the card is stolen, debit cards are very insecure . 3. Smart cards offer more security and confidentially than any other financial or transaction storage card the market.They are a safe place to store sensitive or personal information .
4.Credit Card Not required to be connected to a checking account. 4. Checking or saving accounts . 4. Smart cards links directly to the Internet .
5. Credit cards are mostly used in online payments, to sell things or the web. 5. Debit cards can be used with a PIN almost everywhere retail stores, gasoline, resturants and pay phones. 5. Smart cards widely used in telecommunications industry.
6. For the merchant credit card transactions result in immediate credit to the merchants bank account. 6. Debit cards are more readily accepted by merchants than are checks.especially in countries where check cashing and check processing are not widely used. 6. The retail industry widely uses applications of the smart card more specially to identify and reward customers.