Credit card? Debit card? What’s the difference?

Credit cards and debit cards

Simply put, a credit card is a “card that allows you to pay later.” If you really want something but don’t have the money on hand right now, you can use a credit card to pay later. In contrast, a debit card can be described as “a card that carries cash with you.” You load money onto your bank account or debit card and can use it within that limit. For example, if you have 100,000 yen in your bank account, you can use the debit card linked to that account to make purchases up to 100,000 yen.

Benefits of a credit card

Credit cards not only allow you to pay later, but they also symbolize social status. Those who can spend large amounts are generally considered to have higher social credibility. Furthermore, in other countries, having a credit card serves as proof of identity when staying at hotels, making it a valuable asset for gaining global credibility.

Benefits of debit cards

Unlike credit cards, you can only make purchases within the limits of the amount you currently have in your account. This prevents you from overspending and reduces unnecessary purchases. Since it’s linked to your bank account, you don’t need to carry cash around even if you want to buy something expensive, eliminating worries about theft. Another major advantage is that anyone can create one, making it usable for people who don’t want or can’t get a credit card.

Payment processing services are systems that complete payments using electronic money. Therefore, they offer the advantage of smooth and efficient payment processing.