Although credit cards and debit cards are quite alike regarding the features, there are some significant differences between these two cards.
Undeniably, they are similar in terms of 16-digit card numbers, personal identification number (PIN) codes, and expiration dates. In the gambling industry, credit cards and debit cards are the popular solutions to transfer money since they are trustworthy and convenient.
Despite the new regulation in the UK that bans the use of these methods, they remain the most commonly used options for gambling payment worldwide.
Since the majority of sportsbooks, online casinos, and poker sites accept the use of these cards for their simplicity, it is important some people be able to differentiate them. So, what are the essential differences between a credit card and a debit card?
Credit Card Features
A credit card is a card that allows the customers to borrow funds from a financial institution, commonly a bank. Obviously, cardholders signed an agreement to pay the money back which comes with interest depending on the bank’s terms and conditions.
On this credit card, the users are able to make transactions at credit card gambling sites in a way that a financial institution pays the gambling operator but the cardholders receive the bill and pay the bank back.
Credit Card Categories
The good news for the gamblers is that credit cards are divided into four categories like Standard credit cards, Secured credit cards, Rewards cards, and Charge cards.
The Standard cards let the users have a renewable balance up to a certain credit limit. This means that these cards allow a line of credit to the players.
Concerning the secured credit cards, these types of cards are typically for the gamblers who have limited or damaged credit that obliges these cardholders to place a repayable security deposit.
In this security deposit, the users hold it as a guarantee until the account closure.
Moreover, for the rewards card, as its name suggests, the customers will benefit from various rewards including rewards points, miles for making purchases, and cash back.
And concerning the charge cards, these sorts of cards require the gamblers to pay their balance in full enabling the users to spend unlimited funds. However, the customers are required to pay their balance in full at the end of each billing cycle.
Advantages of Using Credit Cards
- The Best Protection Against Fraud. Compared with debit cards, Credit cards provide much better protection to the players. For example, in the loss or theft of their cards, they have to report it in a timely procedure. $50 is their maximum liability for deposits made after the card disappeared.
Furthermore, with the Electronic Fund Transfer Act, the customers will be protected from loss or theft provided that they report it within 48 hours.
- Users can Dispute Unauthorized Purchases. With the Fair Credit Billing Act, the customers can dispute when their purchases are unauthorized or when their goods are damaged or lost.
Nonetheless, with debit cards, the customers are not allowed to dispute their purchases and debit card theft victims have to wait for an investigation before getting their refund.
Debit Card Features
A debit card is a card that enables gamblers to make payments by deducting money directly from their account. Thus, contrary to a credit card, the customers do not need to loan from their financial institution.
This means that on the debit card, the users make purchases or transfer money directly from their savings.
Debit Card Categories
Unlike the credit card, only two types of debit cards are available for those who do not want to carry cash or physical checks; Standard debit cards and Electronic Benefits Transfer (EBT).
As far as a Standard debit card is concerned, it is one of the most popular types of debit cards in the gambling industry.
Visa and Mastercard are the most used enabling the users to manage their finances in a more convenient way. As for EBT, a card-based system is used in the US to issue food stamp benefits to beneficiaries.
Advantages of Using Debit Card
- Convenience. Debit cards provide a convenient way of making payments allowing the players to complete transactions easily and quickly.
With these options, the users are able to deposit instantly and the withdrawing process can take between 1 and 5 business days. However, you’re not able to proceed with big payments.
- No Debt. Another benefit of choosing debit cards is the freedom to transfer money to any gambling platform.
As a matter of fact, with this payment option, even the gamblers who don’t have the funds can make a deposit and gamble on their preferred game or sports. Hence, they don’t have to carry around cash or checks.