A debit card is a card issued by a commercial bank. It can be used for payment of goods and services. It is basically an alternative to a bank check or plain cash. The payment through debit cards is made by withdrawing the amount instantly from the payee’s bank account. The debit card also serves as an ATM card.
Debit Card Facts
As with credit cards, debit cards have gained wide acceptance. Debit cards are used for purchasing services and goods, including telemarketing products and online purchases.
Debit cards are plastic money. They allow cardholders the unique advantage of accessing their bank accounts electronically. This can be done from anywhere and at anytime.
Today, debit cards have gained wide acceptance. Corporate executives, international students, globe trotters, businessmen, and many others use the debit cards for its advantages. Debit cards are devoid of any interest, unlike its credit counterpart, and debit cards eliminate the necessity of carrying cash.
Debit cards functionally represent a bank check so that it is also known as a check card. During transactions, the debit card holder can swipe the card in the designated terminal, or the seller or shop owners will swipe the card for the cardholder. The transaction is processed, and the debit card holder keeps a tab on the transactions by using his PIN or by signing the sales receipt. In most countries, debit cards double up as ATM cards, which are used for cash withdrawal. Debit cards can also act as check guarantee cards.
Debit card features
A debit card features certain typical characteristics on either side. In the front of the card is the logo of the issuing bank, name of the cardholder, EMV chip, date of expiration of card, hologram, and card number. The back side of the debit card contains a magnetic stripe, card security code, and signature panel.