Difference Between Credit Card & Debit Card
Credit and debit cards may look similar and sometimes offer similar benefits, but they function differently. Here’s a detailed comparison to help you understand the key differences:
| Feature | Credit Card | Debit Card |
|---|---|---|
| Function | A short-term loan extended by the card issuer that requires repayment | A means to spend money directly from your savings or current account |
| Spending Limit | Can spend within the pre-fixed credit limit | Can spend only up to the balance available in the account |
| Payment Method | Card issuer pays for your purchases, which you repay by the monthly due date | Amount is deducted directly from your bank account |
| Interest Charges | Interest charges apply in case of late or partial payments | No interest charges are applicable |
| Rewards & Benefits | Generally offers enhanced rewards, cashback, and other benefits (varies as per the card) | Usually offers basic rewards, cashback, and limited benefits |
| Credit Score Impact | Directly impacts your credit score | No direct impact on credit score |
Rupay Credit Cards on UPI
RuPay is a domestic card payment network and currently the only one offering credit card benefits on UPI transactions. In June 2022, RBI allowed the linking of RuPay credit cards to UPI apps, enabling quick payments while earning benefits on UPI spends.
Initially, only a few credit cards were available on the RuPay network. However, most card issuers, including HDFC Bank, SBI Card, Axis Bank, ICICI Bank, and more, now offer RuPay variants of their existing cards or are launching new cards on the RuPay network.
Additionally, while some cards—such as HDFC UPI RuPay Credit Card—are designed for UPI transactions and offer accelerated rewards on UPI spends, other RuPay credit cards offer a base reward rate or cashback on UPI payments.
What are Credit Card Reward Points?
Most credit cards come with a rewards program, allowing you to earn reward points on every spend and redeem them across various categories as per your needs.
With a rewards credit card, every time you make a purchase—whether by swiping your card for a PoS transaction or spending online—you earn a certain number of reward points. Some credit cards offer accelerated reward points on specific categories or partnered brands, while others offer the same rewards across all categories.
Cardholders can accumulate these reward points and redeem them for vouchers, merchandise, air miles, cash credit, or even convert them into airline or hotel loyalty points as per the card issuer’s policy.
While reward points can offer significant savings, one important factor to consider is that most credit cards have an expiration date for their reward points. Typically, reward points expire within 2-3 years from the date of accumulation. Therefore, it is advisable to keep an eye on your reward points and redeem them on time to maximize benefits.