CREDIT & DEBIT CARDS

A credit card allows the holder to borrow funds from the issuing bank up to a pre-approved credit limit, whereas a debit card directly draws funds from the cardholder's linked bank account.

A digital card number generated for secure online purchases only.

RBI's Master Direction on Credit Card and Debit Card – Issuance and Conduct Directions, 2022 governs the issuance and conduct of credit and debit cards by banks and non-bank entities in India.

Preloaded card not linked to a bank account, unlike a debit card.

The billing cycle is the period (typically 30 days) between two consecutive statement dates; the grace period (usually 20–50 days) is the interest-free window within which the cardholder can repay the full outstanding amount without incurring finance charges.

Daily transaction cap set by the issuing bank for safety.

The Minimum Amount Due is the smallest payment a cardholder must make by the due date to keep the account in good standing; it is typically 5% of the total outstanding or a fixed minimum amount, whichever is higher, and paying only MAD results in interest being charged on the remaining balance.

Monthly bill showing transactions, dues, minimum payment, and due date.