The difference between credit and debit cards
In this guide we’ll cover the basics, helping you to make the most of your cards.
You can use credit and debit in cards similar ways, but there are differences which are handy to know about, and could influence what you choose to use them for. These include:
- Card features and benefits.
- The costs for using your card at home and abroad.
- Your responsibilities if you choose to use credit.
Understanding the costs
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One thing which could sway your decision between using a Lloyds Bank credit or debit card, is any additional transaction costs:
Card transaction type vs costs table
Transaction type
Debit card costs
Credit card costs
Transaction type
Cash equivalents, including gambling transactions, using your card to make transactions at casinos, betting outlets and bookmakers, and buying online lottery tickets or gaming chips, share trading or spread betting, buying foreign currency, sending money orders or wire transfers (other than balance transfers or money transfers), buying coins, banknotes or digital currency, paying government or court fines, enforcement penalties, fees or costs, online trading such as share dealing or investments, purchasing or topping up electronic money, payment cards, mobile wallets or account dashboard services.
Debit card costs
Free
Credit card costs
A cash transaction fee and interest may apply.
Transaction type
Cash withdrawals at a Lloyds Bank Cashpoint or branch
Debit card costs
Free
Credit card costs
A cash transaction fee and interest may apply (this service is now only available at a Lloyds Bank Cashpoint).
Transaction type
Cash withdrawals at another cash machine or branch
Debit card costs
Lloyds Bank won’t charge, but the owner of the cash machine may. Check for charges before you go ahead.
Credit card costs
In addition to any cash machine charges, a cash transaction fee and interest may apply.
Transaction type
Card purchases
Debit card costs
Free
Credit card costs
Free (If you do not pay your balance in full every month, then interest may apply).
Transaction type
Buying foreign currency from Lloyds Bank
Debit card costs
Free
Credit card costs
A cash transaction fee and interest may apply.
Transaction type
Buying foreign currency or travellers cheques from another branch, agent, or bureaux de change
Debit card costs
Lloyds Bank won’t charge, but other providers may. Check for charges before you go ahead.
Credit card costs
In addition to other provider charges, a cash transaction fee, foreign currency fee and interest may apply.
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Again, it depends on the terms and conditions of your Lloyds Bank accounts, but additional charges usually apply when using a credit or debit card abroad.
Other things to consider

Where next?
Important legal information
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.