Debit Card

Debit card is popularly known as easily accessible plastic cash, which offers electronic access to your savings account in any bank via ATM machines or card swipes. It has functions similar to those of credit cards, with the major difference being the fact that the amount is directly and immediately deducted from the user’s account instead of […]

Debit card is popularly known as easily accessible plastic cash, which offers electronic access to your savings account in any bank via ATM machines or card swipes. It has functions similar to those of credit cards, with the major difference being the fact that the amount is directly and immediately deducted from the user’s account instead of the money being paid by them at a later date. They have got names like bank cards, cash cards or check cards. With the widespread usage of debit card in the world, a debit card issued from one country is often valid to be used in some other country. Debit cards may also be used for making payments of the purchases made over phone or internet. You can apply for debit card online or offline. Nowadays you might not even need to apply for a debit card to get one, because it is readily offered if you open a new savings account.

The primary four issuers of debit cards around the world are – American Express, Discover Card, Master Card and Visa. Apart from these there are some country specific debit cards popular in those countries along with a few more. To name a few UnionPay in China, RuPay in India and Maestro in the United Kingdom are some of the country specific debit card issuers.

Benefits of Debit Cards

  • Using Debit card is a safe and secure option and it is a good alternative for cash, because it reduces the risk of fraud, theft and misuse.
  • Debit cards are easy to carry, can be handled easily and can be conveniently utilized while travelling in comparison to cheque book or cash.
  • With a huge number of ATM machines available all around, Debit card offers both the ease of instant cash and the provision of merchant transactions at Point of Sale (PoS) terminals.
  • Using debit cards for purchase is also a rewarding experience because of its features like cash back offers, bonus points, free insurance coverage along with a range of redeeming options for the points accumulated.
  • Debit cards also helps in keeping a track of your spends.  Regular email and SMS alerts with the details of transactions made through debit card helps in maintaining a record of your expenditures. Also one can make the most of their debit card by making use of a feature called customization of add on benefits.
  • Using debit cards ensures that you spend responsibly, because the permissible limit of spending depends upon the money in your account. Recorded transaction makes the task of maintaining budget and money management much easier.

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