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Thursday, 19 February 2015 05:58




Debit Card


debit card (also known as a bank card or check card) is a plastic payment card that provides the cardholder electronic access to his or her bank account(s) at a financial institution. Some cards may bear a stored value with which a payment is made, while most relay a message to the cardholder's bank to withdraw funds from a payer's designated bank account. The card, where accepted, can be used instead of cash when making purchases. In some cases, the primary account number is assigned exclusively for use on the Internet and there is no physical card.

The development of debit cards has generally been country specific resulting in a number of different systems around the world, which were often incompatible. Since the mid-2000s, a number of initiatives have allowed debit cards issued in one country to be used in other countries and allowed their use for internet and phone purchases. Payments using a debit card are immediately transferred from the cardholder's designated bank account, instead of them paying the money back at a later date.

Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash. Merchants may also offer cashback facilities to customers, where a customer can withdraw cash along with their purchase.

Type of Debit Card and System: -

There are currently three ways that debit card transactions are processed:

EFTPOS (also known as online debit or PIN debit)

Offline debit (also known as signature debit)

Electronic Purse Card System.

Although many debit cards are of the Visa or MasterCard brand, there are many other types of debit card, each accepted only within a particular country or region.

Example: - RuPay in India

Note: - The debit card had limited popularity in India as the merchant was charged for each transaction. The debit card was mostly used for ATM transactions. RBI has announced that such fee are not justified so the transaction has no processing fee. Most Indian banks issue Visa debit cards, though some banks (like SBI and Citibank India) also issue Maestro cards. The debit card transactions are routed through Visa or MasterCard networks in India and overseas rather than directly via the issuing bank.

The National Payments Corporation of India (NPCI) has launched a new card called RuPay.




Last Updated on Thursday, 19 February 2015 06:33