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What is a Debit Card?

IndianMoney.com Research Team | Updated On Monday, November 17,2014, 05:49 PM

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What is a Debit Card?

 

 

Debit Card is to put it in a nutshell; it's an ATM card on the move. This one can be used to make payments at merchant outlets by swiping. The best thing is "You don't have to worry about your cash flow problems anymore". The amount gets automatically debited to your checking account immediately.

A Debit Card offer for on-line electronic payment from your savings/current accounts for purchase and access to ATMs for cash withdrawals and enquiries. It can be used both as an ATM card and as a method of payment instead of cash and cheques when purchasing of goods and services in India and overseas.

Today more than 60 million people have debit cards that carry the logos of the two major payment card companies. That number is likely to grow radically as debit cards become increasingly popular. Many debit cardholders confuse debit cards with standard ATM cards. Not all debit cards are equal. Debit cards with the logo of one of the two major payment card companies are ATM cards with clout. They can be used to obtain cash from ATM machines, and also to make purchases anywhere the logos on these cards are accepted. Increasingly, debit cards join the key elements of ATM cards, credit cards and cheques-- besides giving instant access to cash and worldwide receiving. The funds come directly out of your checking account and because purchases and ATM withdrawals are listed on your monthly statement, you can track your spending.

Debit cards are typically used as substitute for cash and cheques to pay for everyday items such as groceries, restaurant meals, and department store purchases. You don't have to carry cash or cheques. And, unless you dip into an overdraft line of credit tied to your checking account, you don't run up interest charges.

 

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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