What is a Debit Card

By: EconomyWatch   Date: 6 October 2010

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EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

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In order to know what is a debit card let us first know the definition of a debit card. A debit card is a plastic card which one can use as an alternate method of payment.

What is a debit card used for can be understood by going through this text.

The debit card is accessed through the ATM(automated teller machine). Using the debit card is the same as writing a cheque for withdrawing money. The debit card transaction deducts the money spent, directly from the balance that is present in the bank account.

By going through a manual on debit card one can know what is a debit card certification. It is very handy for the first time users of the debit card.

The debit card is an ISO 7810 card physically. In order to know what is a debit card logo one can look up the logos of Maestro, Visa or Mastercard.

There are different types of debit card. The most popular ones are:

  • Visa Debit Card.
  • Mastercard Debit Card.

    The type of debit card usage allowed is country or region specific, they are accepted in different regions and countries depending on the administrative rules of that place.

    What is a debit card, like in different countries

  • Maestro Debit Card and Solo Debit Card in the United Kingdom.
  • Carte Bleue Debit Card in France.
  • Laser Debit Card in Ireland.
  • "EC electronic cash" Debit Card in Germany.
  • EFTPOS Debit Card in Australia and New Zealand.

    A debit card can have both the logos of Visa as well Mastercard.

    What is a debit card compatibility and how important it is evident from the fact that one might be hindered from accessibility across networks. This leads to inconvenience on the customer's part.

    In order to know what is a debit card usage disadvantage one can go through the following details.
     

  • Unless required, one should opt for a plain ATM card rather than a debit card.
  • If one uses a debit card at all one should not give it to any merchant who cannot be trusted.
  • The debit card information and details should never be given on the Internet.
  • What is a debit card swiping may be a question which one might be curious to know. Every shop has a terminal for swiping cards wherein the necessary transaction details take place where the money spent is deducted from the account.

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