Debit Card Bank Card Prepaid Debit Card Check

What is Debit Card?

A debit card by definition is a bank card which gives a customer electronic access to their funds immediately.

It is really a substitute for a check. It is a plastic card with your account information programmed onto the card. This card allows you to make purchases that are deducted from your checking account right away. Transactions that are not processed immediately will be processed within a twenty four hour period. They speed up transactions and are much more convenient than writing a check.

Debit card purchases require a signature or a personal identification number (P.I.N). Some terminals will ask for a zip code instead of (.PI.N) number. Some merchants will require photo identification the time of purchase. Most debit cards are attached to some type of a bank account, but you can also purchase a prepaid debit card. Prepaid debit cards can be purchased at retail and grocery stores. These types of debit cards deduct payment from the balance of the card every time the card is swiped.

Debit cards are used in all type of transactions, and it is an accepted form of payment in most part of the world. It can be used to make Internet purchases, pay bills on-line, withdraw money from your accounts at the automatic payments machines (A.T.M). You can book hotel and travel reservations with, and you can even pay your taxes with your debit card.

Using your debit card to rent a car can become problematic. Some rental car companies will accept debit cards, but the car rental industry prefers credit for theses transactions. A rental car company will put an authorization hold of between three hundred to five hundred dollars on your account whenever you use your debit car to rent a car. You will receive a refund of your money upon returning the car, but this can take up to two weeks.

It is not a credit and should not be confused for one. All transactions are being paid for by the monies that you currently have in your checking accounts. It is also subject to overdraft fees. Spending more than your available at the time of the transaction will incur fees. You will be charged a standard overdraft fee for each transaction that you overdraw. You have the option to opt out of the overdraft protection plan, but your purchases will be denied if the funds are not available.

The convenience of having and using  the debit card is so popular that it has surpassed the use of credit cards.