First, let's talk about the similarities: Both label printing methods require a thermal printhead that applies heat to the surface being marked. The printhead consists of tiny heating elements (dots) that heat up in selected areas to produce the desired printed image. Therefore, the fairly generic term thermal printing can be used for direct thermal label printing and labelling as well as thermal transfer printing and labelling. Their print resolution is determined by the size, number, and arrangement of heating elements, measured in dots per inch (dpi). Typically 203, 300 or 600 dpi. The higher the number, the higher the print resolution and quality.Thermal transfer labels
The actual difference between the two methods is the surface heated by the printhead: Thermal transfer printing uses a wax-based or resin-based ribbon that transfers the ink to the label when heated. Direct thermal printing, on the other hand, uses thermal labels that turn black where they are directly heated.Thermal transfer labels