Debit card vs credit card: what's the difference?
By SendPay Business · · 2 min read
A debit card spends money already in your account. A credit card borrows money you pay back later. They look almost the same and work on the same card networks, but the protection, fees and risks are different.
The key differences
- Debit: spends your own money straight from your account, with no interest to pay.
- Credit: borrows up to a limit, with interest if you don't clear the balance in full.
- Prepaid: spends only what has been loaded onto the card in advance.
Protection when things go wrong
In the UK, credit card purchases between £100 and £30,000 are covered by Section 75 of the Consumer Credit Act, so the card provider can be jointly liable if the seller fails. Debit and prepaid cards don't have Section 75, but you can still ask your provider to try a chargeback.
Which to use
Debit cards suit everyday spending and staying within budget. Credit cards suit bigger purchases where extra protection matters, as long as the balance is paid off. Prepaid cards suit budgeting, travel and giving money to others.
Where SendPay fits
SendPay's Card Issuing Platform lets you issue branded virtual and physical cards to your customers, powered by licensed partners. Virtual cards cost 20p each and physical cards £4 plus shipping. You can preview your platform before you pay.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
How long will a credit card balance take to clear?
Our free credit card payoff calculator shows how many months a balance takes to clear at your monthly payment, and how much interest it costs.
Credit card payoff calculator →What is a card scheme?
The networks like Visa and Mastercard that run card payments.
What is a card scheme? →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.