Credit cards and debit cards may look identical, but they are quite different. A credit card is issued by a financial institution, typically a bank, and it enables the cardholder to borrow funds from that institution while A debit card is a payment card that makes payments by deducting money directly from a consumer's checking account, rather than on loan from a bank. Only credit card bears a risk for the issuer. Debit cards do not bear risk to any parties. So, the above statement is false.