Debit card sultana.pptx INFORMATION FOR STUDENTS

NOTES FOR STUDENTS

1. welcome debit card

2. Introduction of debit card Debit card may look like credit cards but it is important to keep in mind in how they impact your finances. Debit cards can function in two ways like an ATM card for immediate withdrawals of cash from an account or like a check when buying something. The money used to pay for the transactions is usually deducted from your account with in one or two days.

3. Meaning of debit card Debit card is an plastic card issued by a bank enabling the holder to purchase goods and services to immediately debit their account at the issuing banks

4. Advantages of debit Alternative to cash: Debit cards acts as an alternative mode of payment for executing various cash related financial transactions. It can be used for the purchase of goods and receipt of services. Thus, it helps to avoid carrying huge amount of cash while travelling and minimise risk of loss due to thefts, damage etc. Nominal fee: Bank issuing a debit card charges an annual fee for the issuance and maintenance of card. This fee charged is very nominal in nature. Immediate transfer of funds: Debit card ensures immediate transfer of funds in the merchant’s or dealers bank account. Such a transfer of funds takes place almost instantly at the moment of purchases of goods and receipts of services. Instant withdrawal of cash: the debit card facilitates instant withdrawal of cash from any nearest ATM. This helps its holder to avoid a personal visit to bank’s office premise and wait in a long time consuming queue. Cash back: In some instances there can be cash back to the card holder. Card holder gets back a percentage of the total amount spent on purchases made using his card. Easy to obtain: Since you are not applying for credit, once you open an account, a debit card is typically included. Safety: You don’t have to carry cash or a cheque book. Your debit card requires a PIN (personal Identification number). Readily Accepted: When out of town or the country, debit cards are usually more widely accepted than an out of town cheque.

5. Disadvantages of debit card No grace period: Unlike a credit card money for debit card transaction is immediately or quickly deducted from your account. Cheque book balancing: Balancing your account can be difficult unless you record every debit card transactions. Monitoring your spending through online banking can help. Debit card have pre set spending limits. The financial institution that issues the debit card sets the spending limit. A transaction cant be stopped like it can with a cheque. Funds are immediately deducted from the customers account, so there is no delay or flout time like you have with a cheque. Debit cards cannot be used for deferred billing purchases

6. Some guidelines of debit card Guard your debit card against loss or theft. Keep it in a safe place just like cash, credit cards or cheques. If you loose your debit card notify your financial institution immediately. Choose a PIN number that only you know. Don’t use your phone number or birthday date. Guard your PIN number. Memorize it and never write it on your card. Keep receipts from all your debit card transaction and keep track of your spending. Review your statements immediately and investigate any unknown transactions.

7. Types of debit card Check card VISA debit card Master card debit card Maestro card Prepaid debit card ATM card EMV card

8. Check card Check card: A check card is a general term for a type of debit card that functions like writing a cheque. This card withdraws money directly from your account to pay for a purchase. Typically a check card is backed by VISA or Master card and can be used at most merchants. Keep in mind that using a check card wont improve your credit score. If you are looking to build your credit history its better to use a credit card for the majority of your purchases.

9. Visa card VISA debit card: When you use a VISA debit card the transaction can be processed in one of two ways. One option is to use your PIN number to verify the purchase. In this case, the request for payment is sent directly from a merchant to your banker. With a VISA debit card the transactions can also be authorised via the credit card network.

10. Master card debit card Master card debit card: Master card debit card function the same as VISA debit card with no practical differences between the two. VISA and Master card are actually just payment processing networks, which means they handle the transactions between the bank and the merchant. Both master card and VISA are widely accepted, both in the US and internationally

11. Maestro card Maestro card: Maestro card is a debit card service owned by master card, more commonly seen in Europe like a typical debit card, Maestro card require a PIN to verify the transaction. If you are a frequent international traveller you can use your Maestro card. Maestro debit card allows you to immediately withdraw funds in the local currency.

12. Prepaid debit card Prepaid debit card: a Prepaid debit card offers some budgeting advantages over other card. In order to use a prepaid debit card you first have to purchase one and load funds onto the card before you can make purchases you can load your check card, prepaid card or online transfer. This type of debit card is not linked directly to your bank account.

13. atm card ATM card: An ATM card is not associated with a credit card network like VISA or Master card. You can use your PIN number to authenticate a transaction with your ATM card. But the signature option is not available and the transaction will be sent directly from the merchant to your bank rather than through the credit card network.

14. Emv card EMV card: An EMV card is a debit card with an extra layer of security. EMV cards have an embedded computer chip, which is much harder to copy than magnetic stripes. The technology rolling out quickly in the US and many cards now have EMV technology.

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