What is a debit card
A debit card is a type of bank card that enables the holder to have access to his/her account. A debit card enables the holder to withdraw cash at an ATM machine and to make payments for goods and services at POS terminals or online.
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Debit card explained
A debit card is a small plastic card that normally details the card holder’s full name, bank account number, expiry date of the date and a unique security code. Not all banks offer the same types of debit cards and many debit cards have different features and advantages and so it is advised to seek guidance from a professional consultancy when wishing to obtain a debit card. A debit card is a card unique to the holder which enables the holder of the card to gain access to the money held in his/her bank account. Debit cards will vary from bank to bank and may also require certain requirements to be met i.e. payment per month to have the debit card.
There are two main types of debit cards, one which has a stored value and enables the holder of the card to make a payment from that, and one which relays a message to the bank of the card holder to enable the withdrawal of funds.
Some debit cards are designed specifically to be used online to purchase goods and services on the internet and as such there is no physical plastic card given to the ‘card’ holder. Debit cards are particularly favored as a method of payment when paying for products over the phone or online as online purchases can be traced and offer a high level of protection and security for the card holder.
When a payment is made with a debit card, the amount purchased will be debited directly from the cardholder’s bank account however the funds many not necessarily come out of the cardholder’s account immediately, instead the amount will be frozen in the account until it can be debited.
Debit cards enable customers to request cash back at POS terminals when they pay for goods or services with their debit card.
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