[italkcash]

The confusion surrounding the credit and debit cards is somehow extreme, as most people tend to be unable to define what makes a card, a credit card, and what makes a card, a debit card.

First of all, debit cards can be issued to everyone, as there is no credit on them (thus the name debit).

Obtaining a credit card does NOT mean that you can go out and rent a suite at the Hilton just because you have a credit card. If the hotel decides to reserve the money on your card (which they would do in 99% of the cases), they will actually deduct a specific amount on the card. Now this is possible on debit and credit cards, but policies define that debit cards are high risk, therefore hotels require credit cards. Now back to if they decide to reserve an amount.

If you credit card has 10$ on it, and the room costs 200$, then even if it is a credit card, it will NOT work. Why is that then. Well first of all, credit cards does not allow for unlimited charge, it only allows for charge on what is available on the card. Basically the only difference between the credit and debit card is that the bank usually issues a credit line on the card (2000$ or so) that is paid back in full or whatever the agreement is with the bank.

Now people would assume that having a credit card gives more freedom, which it does, but that does not mean charging huge amounts more than the card allows. You can do it to some extend and have the account go into minus, but every card has limits, or anyone would buy a Ferrari on it and leave the country. Anyway, post your experiences with debit or credit cards, I still hear different opinions regarding how it works due to different bank regulations etc.