- 1 Debit cards
- 2 What is a Debit Card?
- 3 Types of Debit Card
- 4 Debit Card | Advantages and Disadvantages
Friends! In this cashless world, everyone wants to make use of debit cards and credit cards. But mostly, every one of us is not much aware of this. So, today we are going to learn little more about the debit card. In the following article, we will see Debit card wiki, what is debit cards, how debit cards work, debit card balance and limit. In the last, we will also see debit card advantages and disadvantages.
Little About Debit Cards
Debit cards, popularly known as a check card or bank card, or debit card is a type of plastic card which makes us able to perform transaction while shopping online or for any other purpose like online money transfer from debit card to a bank account, and so on. In fact, we can say it as an electronic check. Since you can withdraw money directly from your bank account, check your account balance by using an ATM or POS machine without going to the main bank. In some of the cases, the debit card is specially composed for the Internet use only, in such a circumstance there is no any physical card.
Currently, the use of debit cards is spreading more rapidly in numbers of countries and also replaced the check. You can perform a transaction of large amount cash in some of the circumstances. Like the credit card, a debit card is also accepted for shopping through telephone and internet. In debit cards, the amount is transferred previously to the carrier’s bank account rather than paying for it later with a Credit card.
With the help of debit card, you can immediately withdraw cash by using it as ATM card or a check guarantee card. With the help of Debit card, customers can withdraw cash as well as purchases, the merchant can offer “Cashback” or “Cash Out” facilities to his customer.
What is a Debit Card?
Like the credit card, the debit card is also a type of plastic money that is used for performing a cashless transaction. With the help of debit card, you can make a transaction without going to your bank. Nowadays, the use of debit cards is increasing more quickly in numbers of countries. As like the credit card, Debit cards are also used for the cashless transaction, shopping online, transferring money online, etc. But the only difference in the debit card and credit cards. In the debit card, the amount is transferred previously to the carrier’s bank account rather than paying for it later such as the Credit card.
Your debit card is directly interlinked with your best, nearby bank. Sometimes it is time-consuming and tough enough to stand in queue for a single and low money withdrawal. So, to provide comfort, the bank’s invented this plastic card, named debit cards. With the help of debit card, one can perform many activities like transferring money from one account to another, online, or online shopping or paying for something by just swiping it and more from this.
How does Debit card work?
Everyone knows how does the debit card works. If you are not familiar with it then here is some information on how a debit card works.
First of all swipe your debit card in the ATM or PoS machine, so that it can detect the codes, printed on your cards. After getting codes, ATM or PoS will automatically show an access massage for your debit card. For getting access your card, you have to insert your debit card PIN (Personal Identification Number) in the machine, then after it is easy. Just follow all the instructions, seen on the machine and move ahead as per your need. You can check balance, withdraw money, transfer funds from one account to another account, get balance statement, can change debit card pin
See below debit card transaction process flow
Types of Debit Card
How many types of debit card are there? didn’t know? Don’t worry!! In the following section learn little about types of debit cards. The following are the main types of debit cards.
Visa Debit Cards
Such types of debit cards are assigned by the bank’s tieing up with the VISA payment service, offering Verified by Visa (VbV) stage for performing transactions online.
Visa Electron Debit Cards
Visa Electron debit cards are much similar to the Visa debit cards. The only difference between these two is that Visa Electron debit cards provide the facilities of overdraft while Visa debit cards do not.
Mastercard Debit card is the superlative debit card that allows their customers to access their funds worldwide to perform transaction online by using their personal bank accounts on MasterCard SecureCode stage.
Contactless Debit Cards
By using this debit card, a customer can make a transaction with a single touch or just tap or waving their contactless debit cards around the POS machine or terminal. This debit card is better than other. As this debit card work on Near Field Technology (NFC) to make the electronic payments safer than earlier.
RuPay Debit Cards
Basically, launched as the domestic card in a scheme by NPCI. RuPay debit cards allow online transaction including shopping online and transferring money from one account to another on ATM transactions and Discover network promoting the National Financial Switch network.
Maestro Debit Card
Established in 1992, the Maestro card from the MasterCard is excellent premiere and international debit card service which get popularity in very short time over more than 100 countries in the world.
Maestro debit card can be easily identified by a signature logo, printed on cards of all partner. One can easily get access to his funds by using a robust or universal network of cooperative ATMs or POS outlets and also the online resources.
Debit Card | Advantages and Disadvantages
Debit Card | Advantages
Following are the advantages of the debit card. Learn them, it’s for you.
- A convenient alternative to the cash: It is safer than cash and checkbook. Since, It is easy to carry and handling a debit card rather than carrying a cash checkbook, especially when traveling.
- Instant service of money withdrawal and transfer: A debit card with you, will assure instant transfer of money and also provide the receipts services to check the debit card balance. You need to make use of an ATM or a Point of Sale (PoS) machine for a larger transaction.
- Offer Exciting Feature: Shopping with a debit card is beneficial. Since A debit card can change your entire shopping experience more rewarding with the banks offering impressive features like reward points, free insurance coverage, cash back offers, along with purchasing options for collected points.
- Saves Money and Time: Debit cards also saves lots of money, if counted normally. Use of debit cards promotes the habit of responsible spending as the cardholder can spend money up to much amount which he posses in his account as debit card limit or balance.
- Managing Budget: Using debit card is also helpful in managing a better budget and also good money management as the transaction were to be recorded.
Debit Card | Disadvantages
Besides having such amazing benefits of the debit card, there are also some of the disadvantages of using debit cards.
- Internet scams are common: Purchasing online by using a debit card is not good all times. Take care while using the debit card. Your data can get mislaid in cyberspace and may fall into the illegal hands.
- Keeping Record is Mandatory: If you are using a debit card, then you have to note each and every transaction, you make. So that you are not at the risk of over drafting from your bank account.
- Hidden fees: If you are using a debit card in ATM branch of a different bank, then you have to pay for it, for using that service.
- Services are not always assured: Many platforms do not allow a debit card such as an ice cream store or a cutlery store.
- When your debit card lost or stolen? If your card gets lost or stolen in a case, Your data can get mislaid in cyberspace and may fall into the illegal hands.
Have a Good Day!!!