SecureParents™

Each one of these can have their own lengthy and complicated explanation. Here we will attempt to provide a simple overview of each. A debit card is similar to when you write a check, it is a direct withdraw from your bank account. This is also similar to an ATM card, in fact debit cards are often tied to your ATM card. Credit cards are a loan made by the bank that issued you your credit card. The loan is payable 30 days after the purchase. If you choose not to pay the loan you are charged interest. Visa and Mastercard are two very well know credit cards (did you know that Visa is really nothing more then an association of over twenty thousand financial institutions from around the world). A charge card is somewhat similar to a credit card. A charge card gives you a short term loan, only 30 days at which you are expected to pay the amount in full (such as American Express). If fraud is committed, credit and charge cards are more secure as they offer you more protection. First, unlike debit cards the money is not immediately taken from your bank account, this gives you time to resolve and dispute any issues. Second, many credit and charge cards have advance mechanisms to identity and stop fraudulent charges (such as someone in Romania buying 20 laptops with your credit card). Third, in many cases if fraud does occur you are not liable, or if you are liable it is only for a nominal amount, such as $50.00. The Fair Credit Billing Act (FCBA) gives you legal protection not only in cases of fraud but in billing errors. Finally, credit and charge cards can help build your credit rating, debit cards will not help.