Well, originally there was a big difference, now there can be little difference. A tote bag is a large bag, originally it was always made of cloth, with two handles. There are no interior or exterior pockets. It is made to "tote" (carry) things around, especially while shopping or travelling. A handbag is traditionally much smaller and is meant to carry around personal things that a woman needs in everyday life. However, nowadays women have handbags that are the size of tote bags and there is a specific class of handbags called "totes". It allows you to carry more things every day and to shop, all out of the same bag! Men, who do not carry handbags, can carry a tote bag for shopping or travelling.