The correct answer is option 3. Explanation & Key Takeaways: • Debit cards allow you to spend money by drawing on funds you have already deposited at the bank. • Debit cards usually require a PIN (Personal Identification Number) for transactions, especially at ATMs and point-of-sale terminals. • Credit cards may require a signature for transactions, but increasingly use PINs and contactless technology. • Credit cards allow you to borrow money up to a certain limit, to be repaid later along with possible interest. • Interest rates are applicable only to credit cards if the balance is not paid in full by the due date. Related Concepts: • Debit card transactions are directly deducted from the user's bank account. • Credit card users can earn rewards, cash back, or air miles which may not be available with all debit cards. • Credit scores can be positively or negatively affected by the use of credit cards, depending on the user's spending and repayment behavior. • Fraud protection is strong for both credit and debit cards, but credit cards may offer more comprehensive protection in case of unauthorized transactions. • Overdraft fees are generally not applicable to credit cards, but debit card users may face them if they opt into overdraft protection services and exceed their account balance.