What is a debit card?

Oksana Logunova
Oksana Logunova
February 27, 2013
What is a debit card?

Bank debit cards are becoming increasingly popular. They can be called a wallet, only an electronic wallet. In it you can store funds in unlimited quantities. And you can be sure that such money will not be torn, and no one will pull it out from you. Let's find out more about what a debit card is and where it can be applied.

Debit Card Details

A plastic card, which is a registered payment document issued by the bank to its depositors for the possibility of non-cash payment of services and goods by them, is called a debit card. At the time of payment from the account of the cardholder the funds are withdrawn immediately.

Externally, these cards are no different from credit. You can pay with debit cards as cash. When paying for goods and services with such a card, you spend money from your personal bank account.

In any commercial bank in our time, debit cards are serviced.The balance on such cards must always be positive, that is, you cannot spend more money than is on the card. This distinguishes debit cards from credit.

Debit cards with interest

Many banks now offer cards with interest on the funds that are on it. Some banks require that the account be a specified amount, which is required for the accrual of interest. Some make their accrual from absolutely any residue. You probably had to hear the name “Piggy Bank Card” or “Income Card” - this is a debit card with interest.

Difference Debit and Credit Cards

A debit is a subtraction. Whenever a payment is made by debit card, the amount of this payment is deducted from the balances in the bank account. You can spend on this card only within the limits of the balance available in the bank account. In other words, it is a fast banking transaction that takes place between the outlet and your personal account.

A loan is funds borrowed from a bank. Use the meansreceived through a bank loan, it is possible, but it must be remembered that the bank will have to pay interest and commissions for the use of borrowed funds if the entire loan amount is not paid before the grace period provided by the bank expires.

Where to use cards

Debit cards have become a necessary attribute of the lives of many people. They are used in many different areas. This and various service departments, retail chains, restaurants, hotels, gas stations, payment for various services on the Internet and more.

A fairly wide network of ATMs provides the possibility of cashing in case of need, funds, and also allows you to pay utility bills, replenish telephone bills and transfer funds to other accounts.

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