Protection and Perks: A Look at The Security and Benefits of Using Debit and Credit Cards

Are credit cards safer than debit cards? Does one offer more perks than the other? In the debit card vs. credit card debate, one should remember that some advantages and disadvantages come with using both. In this article, we will do a breakdown of both types of card’s security features and advantages.  

Debit Cards

Debit cards possess multi-layers of security. The EMV chip in the debit card is an additional security measure that protects the debit card holder’s information when they make transactions. The chip helps encrypt information, ensuring that all confidential financial data is preserved and protected.

In addition to the built-in security measures that protect a debit card, banks also protect their customers by enforcing fraud prevention monitoring.

Debit cards function on a PIN, an additional security measure that helps prevent unlawful activities from taking place. It is a verification step that protects debit card holders from fraudulence in case they misplace their cards.

If your debit card is stolen, reporting it missing as soon as possible is indispensable. If any unauthorised transactions occur after you have submitted your card as missing, you will be protected from incurring any losses. However, if you fail to report your card missing in time, you are liable to suffer the damages that may follow.

Benefits of Using a Debit Card


  • Provides convenience: cash withdrawals from ATMs, in-person and online card payments.

  • Only allows spending that fits your budget

  • The overdraft option enables you to make purchases even when your account is low on funds.

  • Reward points accumulate.

Credit Cards

Certain benefits that credit cards possess are more convenient than debit cards. For example, credit cards offer more protection in case of fraud or theft. Since credit cards function on credit, fewer damages occur when such an activity takes place. Moreover, almost all credits come with zero liability protection, making it safer and more hassle-free for customers. 

In the realm of shopping, credit cards have begun to offer more rewarding deals than debit cards, creating an incentive for shopping enthusiasts. These rewards emerge in the form of cashback, discounts, and reward points that can be used by credit card holders to avail of great deals. In fact, you can get more benefits with the best credit card in India.

Furthermore, many credit cards also come with a free life insurance perk. Credit cards also tend to possess a better return policy if you aren’t satisfied with your purchase. With a debit card, the seller’s return policy limits your ability to return a product. However, if you made the transaction with your credit card, you can contact your bank and ask them to assist you with the process. The bank will then investigate the matter and decide if you need a refund.

However, unlike debit cards, credit cards do not have the additional security feature of a PIN, meaning that it is easier to commit illicit acts with an ill-gotten credit card. So, it is important to take good care of both your debit and credit cards and report them missing to your bank as soon as possible. 

Furthermore, there are additional charges that come with using a credit card. These charges can be seen through convenience fees, interest rates, and late payment fees. Therefore, credit card holders need to ensure that they are not losing out on benefits by maintaining low additional costs in their credit card usage.

Finally, the biggest risk of using a credit card is that you are liable to spend outside your budget. Since all your purchases are made on credit in this transaction, individuals must be extremely careful while managing their finances. Failure to effectively monitor spending can lead to debt and other financial problems that may impact one’s financial planning and credit scores. While a credit limit is applied to credit cards, the credit limit may not necessarily match an individual’s actual spending capacity. So, be wary of spending too much.

As can be seen, there are many pros and cons when looking into the debit card vs. credit card debate. It is important to decide what suits you. The best solution might be to own both a debit card and a credit card so that you may enjoy the best of both worlds and use the most appropriate card at the appropriate time.

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