Debit cards and credit cards are convenient ways to carry money without having to carry cash. The difference is on what funds the card uses in making a purchase.\r\n\r\nWith a debit card, you are using money that is available in your checking account. \u00a0A debit card purchase is similar to cash as you\u2019re not borrowing money to make a purchase. When funds run out of your checking account, your debit purchase will be declined.\r\n\r\nA credit card, on the other hand, is using credit to make a purchase. The credit is authorized by the credit card issuer and you\u2019re required to repay the advance on the due date. Finance charges may accrue for using credit for purchases as well as additional fees.