Can a Credit & Debit Be on One Card?

Banks offer debit cards as a convenient alternative to cash. When you open a bank account, a debit card is generally issued with your account. A major credit card, however, is only available through an application with a credit card company. When people refer to using their debit card as a credit card, they mean that their debit card is actually a check card.

Debit Transactions

Debit card transactions are secured by a personal identification number (PIN). Each time you use your card to make a purchase, you are required to enter your PIN. Unlike a credit card, a physical debit card is required to make purchases. The merchant swipes your card and allows you to use a terminal to enter your identifying information. The money you spend is deducted from your bank account at the time of purchase.

Check Card

When you present a check card to a merchant, you are usually asked whether you want to pay using credit or debit. A check card allows you to use your debit card as a credit card, which means you can pay for items online and by phone as you would with a credit card using only your credit card number. The number on your debit card is used to verify your account, not to make purchases. However, the money you spend from your check card is still drawn from your bank account. The transaction is usually delayed several days, similar to transactions made with a credit card.

Credit Cards

When you use a credit card, you are not using your money. Instead, credit cards work as small, short-term loans from creditors. The money in your bank account remains untouched when you use a major credit card to make a purchase. This is the primary difference between debit cards and credit cards. A debit card will never extend both a line of credit and access to money in your account.

For this reason, many credit card supporters contend that the question of debit or credit is never available to consumers as they are always forced to use their personal money with a debit card. Also, increased protection from fraud is available using a credit card that is not standard with debit cards.

Considerations

Check cards help you manage your money without the risk of accumulating too much debt. Each time you spend money on a credit card, you owe a credit card company. Supporters of debit cards do not want credit and debit on the same card because it could lead to unnecessary debt. The only debt that incurs with the use of a debit card is overdraft fees. However, as of 2011, consumers are automatically opted out of overdraft protection, which means your card is denied when you attempt to make a purchase on your debit or check card and sufficient funds are not available.