Difference between Credit Card and Debit Card | AU Small Finance Bank
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Understanding The Difference Between Credit Card and Debit Card

    There was a time when we only dealt in cash. But if you think of the last transaction you made, chances are you used a cashless mode of payment. Debit & Credit Cards are considered plastic money as they have replaced cash payments across the world & widely accepted for making online payments. While both the cards may look similar, there is a stark difference between a Credit Card and a Debit Card in terms of their mode of operation and features. Let us learn about both cards before understanding the difference between a Credit Card and a Debit Card.


    What is a Credit Card?

    A Credit Card helps you make cashless purchases on credit. It works on the principle of ‘buy now, pay later’ and comes with a pre-set credit limit based on age, income, credit score, credit history, etc. The bank replenishes your credit limit after you pay your Credit Card dues. You can also convert high value purchases into small EMIs.

    AU Small Finance Bank’s uniquely curated Credit Cards let you explore a world of privileges, earn rewards, cashbacks, avail offers from top brands & enjoy complimentary benefits.


    What is a debit card?

    A Debit Card is linked to your savings or current account that you can use to make cashless purchases and cash withdrawals from ATMs. With a Debit Card, the funds are digitally debited from your bank account. AU Small Finance Bank offers tailor-made Debit Cards with attractive features, lifestyle benefits, discounts and cashbacks from top brands and complimentary benefits.

    Read More: - What is a Debit Card


    Difference between Credit Cards and Debit Cards

    Let’s understand the difference between a Credit Card and a Debit Card.

    Different Parameters Credit Card Debit Card
    Source of funds The money is deducted from your Credit Card limit, set by your bank. The money is deducted directly from your bank account.
    Spending advantage You can spend as per the credit limit set by the bank. You can spend the money that you have in your account.
    ATM usage fees You are charged a withdrawal fee and interest when you withdraw cash using your Credit Card at an ATM. Withdraw cash without any charges, but only up to a certain number of transactions.
    Interest Free Period Enjoy up to 48 days of interest-free credit on AU Credit Card. You don’t have to pay any interest.
    Annual Fees & Charges You may be charged an annual fee for using a Credit Card. At AU Small Finance Bank, Annual Fee may be waived off in case you meet the spends based fee waiver condition. You will be charged an annual fee for your Debit Card basis statement of charges applicable to your bank account.
    Benefits Avail discounts, cashbacks, and rewards. For instance, AU Credit Cards offer exciting cashbacks, reward points on top brands. In fact, you can also register for AU Rewardz & accumulate points for transactions done for categories across hotels, shopping, dining, and more. Avail monthly cashbacks & discounts on top brands with the AU Debit Card range.
    Customized cards Now, you can customize your Credit Card as per your needs. AU Small Finance Bank offers LIT Credit Card, India’s first customizable Credit Card that lets you add/modify features and switch on/off the benefits as per your choice. You can choose the Savings/Current Account basis your needs and opt for a Debit Card that offers you cashbacks, discounts and lounge benefits.
    EMI facility Ability to convert big-ticket purchases into easy EMIs with AU Small Finance Bank’s Xpress EMI option EMI option is currently not available on AU Debit Cards when making a purchase online or offline
    Liability covers Avail Comprehensive Protection Cover on AU Small Finance Bank’s Zenith & Vetta Credit Cards covering Air Accident, Card Liability, Credit Shield, Purchase Protection & others  

    Which is a better Credit Card or Debit Card?

    When considering which is better, Credit Card or Debit Card, you must consider your spending behaviours, financial liabilities, and lifestyle. AU Small Finance Bank’s Credit & Debit Cards range offers

    • Exciting benefits like lifestyle privileges, rewards, free insurance, and many others.
    • Card controls to switch on/off and securely manage limits for Online, Contactless (Tap & Pay), ATM, Offline and International Transactions.

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