1.

DEFINITION AND PURPOSE:

Overview: What is Debit Card and Credit Card?
Credit and debit cards share similar physical Financial institutions supply debit and credit
attributes, presenting a sleek and compact cards, which are payment cards that let
design for ease of use. Both cards typically customers make purchases and conduct
feature a prominently displayed card transactions without utilizing cash. Debit
number, or printed on the front, along with cards are promptly deducted from the user's
the cardholder's name and the expiration bank account, while credit cards are mostly
date. Additionally, a security code (CVV/CVC) used to borrow money from the card issuer
is often positioned discreetly on the front or to make purchases.
back, serving as an additional layer of
This guide clarifies the differences between
authentication for online and telephone
Credit and Debit Cards, enabling users to
transactions.
make informed decisions specified to their
The reverse side of the card may house a
needs. With clear explanations, it empowers
magnetic stripe or an embedded chip,
users to confidently navigate card usage.
utilized for transaction processing and
enhanced security measures. This uniformity
in appearance ensures familiarity and
consistency for users across various financial
institutions, fostering convenience and
accessibility in everyday transactions.

2. COMPONENTS:
Type of Card: Debit or Credit
Card Number: Unique 16-digit number identifying the cardholder's account.
Expiration Date: Date when the card expires, usually printed as month/year.
Cardholder Name: Name of the individual or entity to whom the card is issued.
Security Code (CVV/CVC): Three or four-digit code used for online and telephone
purchases to verify card authenticity.
Magnetic Stripe/Chip: Technology used for card authentication and transaction
processing.
Issuer Logo: The logo of the financial institution that issued the card, displayed
prominently on the front of the card.
Signature of the Cardholder: This signature serves as a form of verification and
authorization for transactions made with the card.
3.DEBIT AND CREDIT CARD USAGE:
Credit and Debit Cards work together with card readers and payment
networks to facilitate transactions:
Swipe or Insert: When making a purchase, users swipe or insert
the card into a card reader at the point of sale.
Authorization: The card reader communicates with the card
issuer or bank to authorize the transaction.
Verification: For online or phone transactions, users enter the
card number, expiration date, and security code, which are
verified by the card issuer.
Transaction Processing: Once authorized, the transaction is
processed, and funds are either borrowed (for credit cards) or
deducted (for debit cards) from the user's account.
Statement: Users receive a monthly statement detailing their
transactions, including purchases, payments, fees, and interest
charges (for credit cards).
Key principles governing Credit and Debit Cards include security,
convenience, and responsible spending. Users should safeguard
their cards, monitor transactions regularly, and make timely
payments to avoid fees and interest charges.
4.REFERENCES: BPLANS. (N.D.). HOW TO WRITE A
FEDERAL TRADE COMMISSION (FTC). (2020). CREDIT, DEBIT, AND
BUSINESS PLAN. RETRIEVED FROM
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HTTPS://WWW.CONSUMER.FTC.GOV/ARTICLES/0205-CREDIT- HTTP://DISQ.US/T/2Y48NX9
DEBIT-AND-CHARGE-CARDS
MANNING, M. (2018). THE CREDIT CARD CATASTROPHE: THE FREEPIK. (N.D.). CREDIT DEBIT
20TH CENTURY PHENOMENON THAT CHANGED THE WORLD.
NEW YORK, NY: HARPERCOLLINS.
CARD. RETRIEVED FROM
HTTPS://WWW.FREEPIK.COM/FRE
WEST, L., & FINCH, E. (2019). DEBIT CARD: THE ESSENTIAL GUIDE E-PHOTOS-VECTORS/CREDIT-
FOR GETTING OUT OF DEBT AND STAYING FINANCIALLY FREE. DEBIT-CARD
NEW YORK, NY: PENGUIN RANDOM HOUSE.