Debit Cards vs. Credit Cards. The key difference between credit cards and debit cards is that each time a consumer uses a credit card, he or she is incurring debt to a credit card issuer. Debit cards, on the other hand, are a financial instrument whereby the consumer is using his or her own money that is being withdrawn from an existing banking account that has already been funded. This major difference means there are 10 disadvantages of debit card use. 10 Debit Card Dangers... Many people make the assumption that credit cards and debit cards are basically the same, and although there are some similarities between the two card types, the main difference has some ramifications that give the debit card some fundamental disadvantages. Here is the key difference between the two: Credit cards are a financial instrument whereby the consumer borrows money from the credit card  issuer. Each time a consumer uses a credit card, he or she is incurring debt. The consumer usually has the choice whether to pay the debt balance in full immediately or to pay it off over a period of time with interest. Debit cards, on the other hand, are a financial instrument whereby the consumer is using his or her own money that is being withdrawn from an existing banking account that has already been funded. This major difference means there are 10 disadvantages of debit card use. Protection against fraudulent use: Debit cards don't offer as much protection against fraudulent use as credit cards do. While debit cards are offering more protection than they did in the past, the exact protection can vary from one card to another. This is especially true if a debit card has been taken and is not been reported as stolen in a timely manner. It's important to contact your bank to find out exactly what protection you have and what you are liable for in the event of fraud occurring.Merchant disputes: If there is a dispute regarding a purchase you make, you are in a weaker position when you use a debit card vs. a credit card. This is because the merchant already has your money when a debit card is used