Debit cards are registered payment and settlement plastic cards that depositors use to make non-cash payments for goods and services with reserves from their account to withdraw cash from an ATM. This payment instrument does not allow exceeding the number of funds on the card account.
There are no significant differences between the systems. The difference lies in the settlement currency, which matters if the purchase is made abroad. For Visa cards, the currency is US dollars. For MasterCard – euros in the EU countries. Differences may affect the conditions for making payments abroad, promotions, and bonuses from payment systems.
The national payment system (BELKART cards) uses the BELKART-Maestro system to pay for purchases abroad. The BELKART debit card also has advantages: it is cheaper to issue and maintain.
Plastic cards are divided into classes according to their functionality and security. The most common gradations: Standard, Classic, Gold, Platinum. The higher the course, the safer and more functional they are, for example, the ability to make remote payments and additional services (gifts from banks and their partners, various discounts). These gradations are not noticeable when paying for goods in stores, but the Standard level is not enough for payments on the Internet.
Using debit cards
In our country, the first debit cards began to appear in the 90s. Their goal was to reduce the share of cash turnover and provide the population with a convenient tool for mutual settlements.
Today, citizens use a debit card to:
- Replenish the account, withdraw, store, and accumulate cash.
- Pay for goods in retail stores and on the Internet through a personal statement.
- Receive wages, pension accruals, allowances, and scholarships.
- Transfer funds from your account to other accounts.
- Pay loans, utilities, etc.
If the card is lost, a person must contact the bank with a request to block it or do it on their own through their account. You can get a new card at the bank branch where the card account is opened. It will protect the user from attacks on his funds by scammers.
Benefits of having a debit card
- Convenience – no need to carry banknotes with you, which require a separate place, and the ability to make payments outside the country.
- When saving time, you don’t have to look for the right amount and wait for the change when paying for a purchase.
- Efficiency – You can quickly receive money at any time.
- Security – no need to worry about the safety of money. When paying through a terminal or ATM, you will need a pin code known only to the owner.
- The possibility of accumulation – many banks charge% (interest) on the card account balance.
- Gifts – banks offer loyalty programs to customers (a receipt of cashback, overdraft services, online services, etc.).
The dissimilarity between a debit card and a credit card
Externally, plastic carriers almost do not differ from each other. Sometimes, you can find the inscription Debit or Credit on the front side. To avoid unpleasant surprises, users need to know the difference, such as creating debt or writing off commissions.
- Source of income: The debit card stores the plastic holder’s own money, which he earned or received as income. A credit card permits you to spend funds that the bank lends to the user under a signed agreement. In this case, the person must return the paid money within the prescribed period. If there is a delay, interest for use is charged at an increased rate.
- Getting cards: To apply for a credit card, you need to collect a package of documents. Debit cards are issued at the client’s request, which is a private person or an employer.
- Interest accrual: The credit card owner pays interest for the use of the loan provided by the bank. With a debit card, interest is accrued on the balance of money on the card account.
- Limit: A credit card has a credit limit or an overdraft line. Debit cardholders are limited to the amount that is available on the account.
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