Many of us are using ATM Debit Cards and Credit Cards. Hardly some people know the Difference Between Debit Cards and Credit Cards in Pakistan and also what benefits they have for us. we use the Debit Card solely for getting cash from ATMs. So, in this article, you’ll know the difference between debit cards and credit cards in Pakistan as well as the benefits they have for us. You will also learn the difference method to use these debit and Credit cards in daily life. First I would like to define the ATM Cards here:
Use of ATM Cards in Pakistan
The Auto Teller Machine (ATM) Card is very similar to the debit card. By using this card, you can easily get cash from any ATM machine in your locality. The annual charges of using ATM card is less than that of debit card. The ATM card I am using as of December 2019, only charges me around 500 rupees per year.
So, if you have a bank account and want to get the cash only then the ATM cards are the best option for you. Today, all the ATM cards of all the banks in Pakistan are connected with 1-Link Network. That’s the reason you can go to any bank for the opening of an account. All ATMs of the banks will work in the same way.
One thing you must recognize here and that is when you go to the bank for opening an account. Many of us feel that when I have an ATM or Debit card then why I required a cheque book. Although it is very necessary for you. As our banking system is lacking many modern technological things. For example, if you go to an ATM machine for taking cash, who know that the machine is out of order. Who knows your bank link is down.
Maybe you forgot to renew your ATM card. And, maybe you have lost your wallet containing your ATM card. So, in these scenarios, if you order a cheque book not big but at least having 10 pages, it will be beneficial for you.
Use of Debit Cards in Pakistan
Similar to the ATM card, the Debit card is also connected with your bank account. You can use this Debit Card as like ATM card. But the Debit card has much more to do with as compare to ATM card only. The major difference between the two is the logo of VISA and Master Card.
You cannot find these logos on any usual ATM card. The benefit of these logos is, you can do the shopping inside and outside of Pakistan. You can pay your utility bills. You can go shopping in any big mall and you don’t require cash to pay your bills.
the only thing you should undermine is the amount in your bank account. Because the Debit Cards work only when you have money in your bank account. Without the money in the bank account, you cannot purchase anything. But Credit Cards have much more benefits than these ATM and Debit Cards like:
Use of Credit Cards in Pakistan
The Credit Card has all the qualities that an ATM and Debit Card has. More than this you can do shopping, you can buy anything with this credit card even if you don’t have money in your bank account. Even you can withdraw money from ATM machines like Debit cards. These Credit Cards have different categories. These Categories are; Silver, Classic, Gold, and Platinum. There is a credit limit based on these categories.
A Silver category credit card can avail 50,000 credit limit. For a gold credit card, this limit is between 2 lacs to 5 lacs rupees. And for a platinum credit card, this limit goes to roundabout 10 lacs. The original Credit Limit can be different from bank to bank.
When you used a Credit Card to buy something then, there is a specific date on which you have to return the spent amount to the bank. If you do not pay the spent amount in the bank then the bank starts adding markup on the said amount. As the whole amount what you have spend is like a credit that you have taken from your bank. that’s why this card is called the “Credit Card”.
To conclude what has been said above is there are three kinds of Cards that a bank issue to its customers. All of these cards have some benefits and some limitations. One should know these limitations and benefits before start using these ATM, Debit and Credit Cards.
You can also read about NayaPay the 1st E-Money service of Pakistan.