Two decades ago, the number of debit cards in circulation was approximately 19 million. This figure is projected to cross 34.4 million by 2016. The history of debit cards shows that they have largely been used to pay for food and drinks.
The same financial institutions offer both debit cards and credit cards. Both cards offer special rewards, such as points and cash back on purchases made through the card. Debit cards and credit cards can be used to make online payments with the help of the Pin number assigned to them. They can be used to withdraw money from ATMs, depending on the cash limit available on these cards.
Debit cards and credit cards differ in some significant ways. In the case of a credit card, the issuer offers credit and overdraft facilities. This facility is not available with a debit card, which will only debit payments from existing and available funds within the cardholders account. A credit cardholder therefore has a monthly bill to pay in every month that the card is used. If they don’t pay that bill, high interest charges are applied. A debit card holder is free from the hassle of paying those bills, and from the risk of building up large debts to credit card companies.
Debit cards are offered by banks in the following forms:
Debit cards offer the following benefits:
Debit cards, however, do entail certain limitations, such as:
The banks issuing debit cards include:
Debit cards are becoming more popular because they use the funds from the cardholder’s savings or checking account, offering convenience and safety.
Find an overview on the debit card companies which have been acting as a substitute for cash while traveling or buying things from the market:
Debit Card has been used as an alternative mode of payment these days. Find detailed on the meaning and definition of debit card as well as the processes involved in getting a debit card:
Charges made by various debit card providers differ from companies to companies and banks to banks. Find detailed charges on debit cards:
Online debit card ensures a faster mode of processing and making the transactions. Get an overview on online debit card:
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