What does Debit card mean?
A debit card is released by a financial institution, and allows customers access to their own account in order to withdraw money or pay for various goods and services. This takes out the bank as an issue in acquiring a consumers money from their account, since they can just visit the nearest automated teller machine and get some cash or they an just buy items using their debit cards. The debit card also removes the need to pay with checks as this can be tricky at times, while purchases with a debit card are automatic and instant, in transferring the money from the consumer’s account to the business’ bank account.
Convenient and secure are two of the attributes of the debit card, a client accessing his or her account could not be any simpler, also there is no hassle with writing checks as a means of payment. These cards are also safer when it comes to payment because of the requirement of a code to access funds on an account, also checks can be stolen easily.
The critical difference between debit and credit cards, even though they look similar, is that a credit card creates a loan on the account, while a debit card uses the already available funds on the same account. Debit card users have an option of the transaction authorization, they either do it by signature or by their PIN number. This does not make any difference from the consumer’s point of view, but it’s a hassle for any merchant whi has to deal with these types of transactions. The signature transaction uses one type of payment, while the PIN transaction uses another type, each involving different charges.