DEBIT CARD & CREDIT CARD-BANKING

                             


How many types of cards are available to a customer?

Cards can be classified on the basis of their issuance, usage and payment by the card holder. There are three types of cards:

1. Debit cards
2. Credit cards 
3. Prepaid cards.

These cards can be issued by banks or other entities too. We will discuss each type of card and the issuance authority for particular type of card.

DEBIT CARD:-

1. Debit card is a plastic card which provides a alternative payment method to cash when making purchases.
2. Functionally, it can be called an electronic check, as the funds are withdrawn directly from either the bank account, or from the remaining balance on the card.
3. It is also known as BANK CARD or CHECK CARD.
4. Debit Card means the card which can be used to withdraw cash up to the limit present in customer’s bank account.
5. So to get issue a debit card, one should have a bank account.
6. This means that debit cards are only issued by banks which are linked to the customer’s bank account number.
7. So, in the case to use a debit card, one should have enough balance in his bank account.
8. They are used to withdraw cash from ATM, purchase of goods and services at Point of Sale (POS)/E-commerce (online purchase) both domestically and internationally (provided it is enabled for international use).
9. It can also be used only for domestic fund transfer from one person to another.