Question

Shreya owns a café in Bengaluru. She wants to explore different electronic payment methods to streamline transactions with customers. She also weighs the pros and cons of accepting debit cards and credit cards.

Compare these two methods of payment to help Shreya choose a suitable method of transaction.

Answer 1

Basis	Debit card	Credit card
Status	Bank account is a prerequirement.	Bank account is not a mandatory requirement.
Credit facility	This facility is not available.	This facility is available.
Payment	Payment is made immediately by directly debiting the bank account.	Payment is made later after using the card.
Security	It is not required.	It is required.
Interest	Money is not borrowed on credit, so no interest is charged.	Interest is charged if the cardholder fails to repay the borrowed amount on time.