How A Debit Card Works.

By Jane Hudson


Debit cards can be used as a convenient method of payment, which is now popularly used nowadays. The card can be used to make purchases of services or products. You can also use them in other countries which is quite beneficial for business owners who need to travel a lot.

Credit Cards, Debit Cards, and Differences There is one major difference in debit cards and credit cards; the money which is contained within the card is either yours (if you have the former) or it is either borrowed from the bank (if it is the latter).

What Is The Difference Between Credit Cards And Debit Cards? A debit card holds a debit balance while a credit card holds a credit balance. Debit cards allow you to make purchases of goods and services or the ability to withdraw cash, but with your own money. Credit cards give you the ability to make purchases by borrowing money from the bank. If you look at this through a bank's perspective, debit cards are used to withdraw cash from an account, likewise, credit cards increase a bank's liability as the user is using the money borrowed from the bank.

What Debit Cards Do The holders of a debit card or issuers open an account which has a certain credit limitation which is also set by them. The holder or issuer of the card can avail its use as long as they stay within that certain limit to pay for the purchases of the goods and services purchased by the owner. If the card has been exhausted, the owner or holder is required to refill it by making a transaction within the account. The holder can access the cash by withdrawing it from ATMs or by swiping them through card reading machines.

Co-Branded Prepaid Card Co-branded prepaid cards are like debit cards, but are an outcome of a merger between a company and brands. Such cards typically have 2 or more logos on them. If for instance a business merges with brands such as MasterCard or VISA one of the logos will be of the company and the others will be of the brands it partnered with.

How And Where Can Debits Cards Be Used? You can use your debit card anywhere you wish to. It may be the mall, a local store, a gas station, hotel, motel, resort, spa, restaurant, movies, anywhere at all. There are two methods in which you can use your card to withdraw cash:

Where & How Can Debits Cards Be Used? There are numerous places where you can avail the use of your debit card. It can be in the mall, stores, hotels, motels, resorts, spas, restaurants, gas stations, or theatre.

The main and most popular methods to access your cash are: Card Reader Machine ATM

Another way to access you money is through card reader machine. This kind of machine is used by shops, stores, and gas stations. It is kind of like a mini ATM, but instead of taking out cash you simply pay from your account directly.

Debit card is a safe way to carry your money as it is a very useful tool and is convenient as well. However, for business owners co-branded prepaid cards can pay off.




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