Debit card

Debit cards are universal payment instruments used for instant purchases in any currency at payment terminals, online, and to withdraw cash from ATMs (Automated Teller Machines).

The cards are linked to your bank account and quickly give you access to your funds.

Usually, we imagine a debit card as a piece of plastic like any charge card. But a debit card can be physical or virtual. It is connected to the user’s bank or credit union account. With debit card payment solutions, you can purchase things and withdraw cash from ATMs based on the number of funds in your account within the daily limit.

Card network debit cards

A few card networks offer their services globally. VISA, Mastercard, Maestro, Discover, and American Express have the largest market shares. They provide enhanced debit transaction protection with:

• Two-Factor Authentication method
• Chip-based technology
• Additional security features
• 24/7 support.

The latest chip-based technology is a global standard for making card payments and using contactless payment methods. It prevents card cloning, card skimming, and other malpractices.

With network-enabled debit cards, you can securely dive into online shopping, book tickets, complete other payments, and withdraw funds from cash machines.

Co-branded debit cards

Retailers of consumer goods or services can partner with card networks to provide co-branded debit card programs. Cards from these programs have the retailer and debit card issuer logos. With co-branded cards, you can earn merchandise discounts, bonuses, and other rewards to use in stores within the network where they are accepted.

White-label debit cards

The private-label debit card programs offer branded cards with the client company’s logo, design, and other customizations. Use these cards for your business needs, highlighting your brand’s identity.

If you struggle to pay off your credit card debts, a debit card is the best way to control your spending. You can also teach your kids about about how to save money by spending less, so they can adequately use their prepaid cards.

Debit cards’ and credit cards' appearance is almost identical. You can pay for things or get money from ATMs using both. Credit cards allow you to borrow money from the bank, while debit cards would only allow you to spend funds available in your bank account.

In the latter case, the bank immediately deducts the money from the account. For credit card operations, the merchant refers to the card company. The card company pays the seller, then bills you for the purchase. The entire process may take up to a few days. At the end of the month, a specific amount of money is taken from your account. If you cannot pay the whole sum, you will have to pay interest on the remaining balance.

Pros

• Less likely to create debt

  No more overspending habits. Banks limit your debit card transactions with the amount of money in your account.

• Convenience

  Feel free to keep track of your spendings, plan your budget, and efficiently manage your finances with real-time monitoring of your payments.

• Safety

  In case of loss, you can get a new card with access to full amount available in your account. It’s much better than losing cash.

• Reliability

  If the service provider goes out of business or your order paid by a debit card is damaged, lost in transit, or does not match the description, you will receive a full refund.

Cons

• Avaliable funds only

  You can’t use credit to pay your bills or to withdraw money from ATMs. You must monitor changes in your bank account to process payments successfully.

• Limits on daily operations

  The amount of money you spend on the daily basis is limited. To increase your spending possibilities, you need to contact your bank.

• Overdraft fee risks

  With a debit transaction, it is easy to create an overdraft. You will have to pay fees for using it.

• Fewer bonuses

  Credit cards have much more bonuses and protection measures than debit cards.

Set spending limits, choose your PIN code, customize other protection methods, and discover additional features to ease any purchase or cash withdrawal.

Below is a list of settings you can use to protect your bank account from fraud, phishing, and other threats.

VISA 3D Secure

VISA debit card protection works against unauthorized card usage in the case of it being stolen, lost, or otherwise compromised. Usually, you receive a one-time password to your email address or cell phone. You must validate each transaction you make through this unique personal code.

NFC technology

NFC is a wireless data transfer method. It allows mobile gadgets to share data with other devices in close proximity. This technology enables contactless payments through Apple Pay, Google Pay, and other contactless payment methods.

Instant push notifications

Set notifications to track changes in your debit card account. Receive messages in a matter of seconds.

Deposit protection

Financial institutions take measures if the system spots a suspicious transaction that may be fraudulent. Phone service specialists will call you to confirm that you made the purchase. Experts will support you if your card is being used in fraudulent activity.