International Debit Cards Benefits
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Most people know what a debit card is but not all understand the difference between domestic and international debit cards. Simply put, this type of debit card is one that is accepted around the world. With this card, the individual could still make purchases and/or make payments on bills but the primary advantage is being able to go to a bank, credit union, or ATM and withdraw cash when needed.[br]
Most people know what a debit card is but not all understand the difference between domestic and international debit cards. Simply put, this type of debit card is one that is accepted around the world. With this card, the individual could still make purchases and/or make payments on bills but the primary advantage is being able to go to a bank, credit union, or ATM and withdraw cash when needed.[br]
Today, international debit cards work in most countries although there are some of the more remote locations that might not. This type of debit card is backed by Visa or MasterCard and the card itself would display the issuing company’s logo. That way, the card has international recognition, which is what makes it easier to be accepted in foreign countries.
Some of the primary features associated with international debit cards include ATM usage. Again, just as with a domestic debit card, this type could be used to withdraw cash from an ATM in hundreds of countries. Now, if the money were withdrawn from an ATM not associated with the issuing bank or credit union, the cardholder would be charged a fee and in foreign countries, this would be higher than the $2 to $5 charged in the US. For this reason, it would be best for international debit cards to be secured with a bank that has international presence so fees would be waived.
Just as with a domestic card, international debit cards would be linked to a primary account at a bank or credit union. Typically, debit cards are connected to a checking account although they can be connected to a savings account too. Let us say that the cardholder was visiting India, Paris, Mexico, or some other country and wanted to buy something for $200. If that person had $2,000 in his or her checking/savings account, the $200 would be deducted and the purchase processed just as a normal credit card.[br]
Today, most countries use up-to-date processing terminals so the transaction would be completed in real time. For those countries that have older equipment, it might take a few minutes for charges on international debit cards to process. Regardless, the money would be deducted from the cardholder’s available balance at the bank or credit union back home.
In addition, most international debit cards issued through a bank without locations around the world can still be processed. In this case, the issuing bank or credit union would tie up to another bank so the purchase or payment would go through without any problem. With this, people can travel and enjoy the convenience and efficiency of international debit cards. This works great for banks that do not have international presence.
Obviously, carrying international debit cards while traveling overseas provides consumers with protection in that carrying around a significant amount of cash could put that person at risk for theft or worse. Then, since these cards can only work with the set PIN, security is even better. Additionally, if a card were to be lost or stolen, the cardholder would contact the issuing company, which would immediately, any further purchases/payments would be locked out.
The only drawbacks to using international debit cards is that in some countries and depending on the bank or credit union that issued the card, bank tie up may not be possible. In this case, purchases/payments/ATM withdrawals would be impossible. Also, the cardholder might experience restrictions on cash withdrawals in some countries or have a fix limit on the amount of foreign exchange.
