Question

What is a difference between using a debit card and a credit card to pay for a purchase?

A) Debit cards require the use of a PIN for transactions, whereas credit cards don't necessarily need a PIN.
B) Debit card transactions directly deduct funds from your bank account, while credit cards involve borrowing money that you pay back later.
C) Credit cards offer the flexibility of swiping or inserting for transactions, while debit cards typically require inserting.
D) When using a debit card, the funds for the purchase must be available in your account, whereas credit cards extend a line of credit for purchases.

Answer 1

The difference between a debit card and a credit card is that a debit card requires available funds in your bank account, whereas a credit card provides a line of credit to borrow and repay later. Option B)

Step-by-step explanation:

The main difference between using a debit card and a credit card to pay for a purchase is how the transaction affects your bank account and your borrowing from the lender. states that debit card transactions directly deduct funds from your bank account, while credit cards involve borrowing money that you pay back later, which is correct. That is, a debit card allows for the direct and immediate transfer of funds from your checking account to the seller, while a credit card represents a short-term loan provided to you by the credit card company, which you are obligated to repay later.

Furthermore, when you use a credit card, it does not change the quantity of money in your account or in the economy; it is simply a means to temporarily access funds provided by the card issuer. Therefore, the correct answer to the question of what is a difference between using a debit card and a credit card to pay for a purchase is When using a debit card, the funds for the purchase must be available in your account, whereas credit cards extend a line of credit for the purchases.