In its pursuit of disseminating awareness through the (Diraya) campaign launched by the Central Bank of Kuwait and Kuwait Banking Association for the second year in a row, Kuwait Finance House (KFH) is keen on sending out a set of messages and instructions through its special channels on social media, to enhance awareness on financial transactions and achieve the highest level of financial inclusion. KFH sought to spread awareness on the types of banking cards, available means of protection and security, and the significance of being extra careful and cautious when using the cards locally and globally in direct purchase transactions or online.

He noted that there are seven main differences between debit card and credit card. The first card depends on deducting the due amount from the customer’s bank account directly while the credit card depends on deducting the amount from the credit limits granted to the customer. Accordingly, both cards have different advantages and uses but are similar in other aspects.

He added that both cards are mostly made of plastic with a magnetic stripe and a smart chip by a bank or a financial institution. Broth cards provide withdrawal, purchase, and e-payment options locally and globally. The cards are renewed at certain determined periods, and both follow a global payment system.

Differences

KFH emphasized that the debit card is connected to the customer’s current or saving account and used in payment, purchase, and cash withdrawal transactions. The transaction value is deducted from the balance available in the account. The credit card is used in payment/ purchase transactions and cash withdrawal through a certain credit facility limit.

Following are the main differences between the two cards:

Available balance: The balance available in the debit card represents the balance available in the customer’s current or saving account. The customer may not withdraw amounts or conduct any purchase transactions exceeding the balance available in the account. However, the balance available in the credit card is construed as a credit facility limit through which purchases or cash withdrawal may be conducted as a debit.

Debt Settlement Period: for credit cards, the due amount is paid in instalments as determined by the bank issuing the card, while in debit cards the debt amount is settled within 30 days maximum.

In the same context, KFH stated that there is another type of cards called (Prepaid Card) for which account opening is not a pre-requisite. The mechanism of obtaining this card demands that the customer shall charge the card with a certain amount. The card shall enable the customer to conduct purchase and withdrawal transactions locally and globally within the limits of the said amount. This card is suitable for those who wish to control their spending easily and securely without the need for any guarantees or income to obtain this card.

Means of Security

KFH indicated that the cards are secured and encoded. The customer receives a special code upon performing any transaction for confirmation. The secret No. will be private for the customer and should not be disclosed by bank employees or commercial stores to any party whosoever.

KFH reiterates the significance of adopting utmost care and attention when using bank cards to prevent any attempts at fraud or stealing of card details and available balance. KFH also emphasizes that in case of card loss the bank must be notified immediately through the related bank application or the bank’s call center which is available round the clock to prevent any fraud acts by others.