Commerce and Management Sciences World

Commerce, Financial Accounting, Human Resource Management,, Cost Accounting, Principles of Business

You are here: Home / Principles of Banking / What is Debit Card and Its Types

What is Debit Card and Its Types

By

What is Debit Card

The debit card, also known as electronic or plastic money, is a financial instrument issued by a bank or savings bank that allows the customer to access the balance available in their current account associated with the card. In fact, the payment in a debit card carries directly the charge in the account of which it is the holder.

Likewise, the debit card facilitates the acquisition of the articles and products that are desired in the shops and establishments that accept it as a means of payment, while allowing cash withdrawals from its network of ATMs and other operations (such as recharging A mobile phone with the prepaid card, complete transfers, etc.)

You may also like to Read

In any case, it is called a “card” because it consists of a noun- transferable plastic device, the size of a business card, with the logo and name of the bank, an identification number, the name of the holder, the date of (Expressed with month and year) and that also has a magnetic strip in which information is stored with the identification of its owner and other related data.

Types of Debit Cards

They can be categorized into three categories:

  1. Adult Debit Cards:

are the most common; Are associated with a current account and no commission is paid if money is withdrawn from the ATMs linked to the bank or card issuer.

  1. Youth Debit Cards:

These cards have advantages associated with the age of their holders; That is to say, the banking strategy in offering this service is to attract future clients and promote savings in young people. They exist from cards for newborn children, to the young card “Dollar -30″ and ” Dollar+30″, which include discounts on accommodation, transport, cultural activities or courses, among others.

  1. Prepaid Cards:

 in this case, the holder charges an amount of money to be able to perform operations until consuming the amount. One type of prepaid cards is virtual ones or, in other words, those that only serve for the payment through the Internet.

Advantages of Debit Card

  • Avoid having to carry cash always in your pocket.
  • It facilitates to know at all times the expense that is being done with the card.
  • It allows withdrawing cash from ATMs 24 hours a day without any interest charges, as long as it belongs to the same ATM network.
  • There are certain discounts, raffles, and points in some trades to pay with the card (promotions).

Safety recommendations for Debit Card

  • Take care of the privacy of your secret key and avoid sharing it with third parties.
  • Change your personal identification codes (PINs) periodically.
  • Use secret codes difficult to guess.
  • Memorize your secret code; Avoid carrying it in writing.
  • Count your money discreetly.
  • Be sure to remove the card after the operation at the ATM and wait for the screen to return to the beginning.
  • Follow only the recommendations given on the ATM site. Avoid advice from strangers.
  • Do not perform operations at the cashier with strangers nearby.
  • Remove and keep receipts obtained at ATMs, thus preventing third parties from using them for your benefit.
  • Check your bank account balances regularly.
  • If the ATM retains your card, lock it and give immediate notice to your bank.