Debit Card !

 

It is a plastic card which is provided by the bank.  For this it is necessary to have a bank account.  Debit cards are most commonly used for making online payments and withdrawing money from ATMs.  Using this, you can do cashless, payment, easy and secure way.

Debit cards allow customers to make payments by directly debiting the money from the bank account.  Credit cards do not provide credit like debit cards.  For this it is necessary to have money in the bank account.  Eliminates the need to carry cash here.  There is a 16 digit number on the debit card which is known as the debit card number.

This number is unique and primarily represents and identifies the debit card.  The first 6 digits of the debit card number is the issuer identification number, also known as the bank identification number.

These numbers indicate the name of the company that issued the card such as MasterCard or Visa The next 7 to 16 digits indicate the bank account details.  i.e. the name of the bank, type of card and other unique identification that identifies the specific bank account.

Debit card types.

1. Online Debit Card 

 Whenever the online debit card is reflected from the transaction in the user's account, then this debit card requires electronic authorization.  Online debit card transactions are secured with a personal identification number verification system for added security.  The PIN must be validated during each transaction.

2. Offline Debit Card

This usually includes those on major cards such as Visa or MasterCard.  This type of card requires the signature of the card holder for verification during each transaction.  Offline debit cards have a limited daily limit for the value of the transaction.  Transactions using offline debit cards may take two-three days to reflect in the users' account balance.

3. Prepaid Debit card

These cards are also called reloadable debit cards.  To use this type of debit card, the user has to first pay the full amount and later use the money as per his choice.

Benefits of Debit Card.

• You can withdraw money as per your requirement through Debit Card.  
• How can anyone steal from your wallet but it is very difficult to steal money from debit card.
• This eliminates the need to carry cash.
• Some online stores also offer cashback facility on payment by debit card.

Disadvantages of Debit Card.

• Banks levy various charges on debit card holders which can be in the form of a large amount.
• If someone steals your card and you don't report immediately then he can withdraw money from the card with the help of PIN number.
• If you do not have money in your bank account, you cannot make payment with debit card.