Debit card


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Debit card

A card that resembles a credit card but which debits a transaction account (checking account) with the transfers occurring contemporaneously with the customer's purchases. A debit card may be machine readable, allowing for the activation of an automated teller machine or other automated payments equipment.

Debit Card

A card entitling the owner to make automatic withdrawals from a bank account to make purchases or to receive cash. That is, when one uses a debit card, the issuing bank transfers funds from the holder's account to the seller electronically. The holder of a debit card may therefore use it to buy a good or service. Debit cards operate much like credit cards but, while credit cards are essentially short term loans, debit cards are more like electronic checks. They are also called check cards, bank cards or, less commonly, asset cards.

debit card

A plastic card that may be used for purchasing goods and services or for obtaining cash advances for which payment is made from existing funds in a bank account. Because a debit card provides about the same float as a checking account (one to three days), it is a less desirable method of payment than a credit card. These cards are often part of the comprehensive all-in-one accounts offered by many brokers.

Debit card.

A debit card -- sometimes called a cash plus card -- allows you to make point-of-sale (POS) purchases by swiping the card through the same type of machine you use to make credit card purchases.

Sometimes you authorize a debit card transaction with your personal identification number (PIN). Other times, you sign a receipt just as you would if you were charging the purchase to your credit card. You can also use the card to make ATM withdrawals.

When you use a debit card, the amount of your purchase is debited, or subtracted, from your account at the time of the transaction and transferred electronically to the seller's account.

You have some of the same protections against loss with a debit card as you do with a credit card, but there is one important difference. While $50 is the most you can ever be responsible for if your credit card is lost or stolen, you could lose much more with a lost or stolen debit card if you don't report what has happened within two days of discovering it.

If you delay reporting a missing card, you could lose up to $500. And if you wait more than 60 days after receiving a bank statement that includes a fraudulent use of your card, you could lose everything in your account including your overdraft line of credit. You can find the specific rules on the Federal Trade Commission website at www.ftc.gov.

In addition, if you purchase defective merchandise with a debit card, there are no refunds. Most credit card issuers do not, generally speaking, make you pay for defective products.

References in periodicals archive ?
We plan, however, to expand the acceptance of debit cards to Maestro Cards (often used as debit cards, mainly in Europe) as well as the local payment Benefit-Gateway, used here in Bahrain for locally issued debit cards.
Using a debit card frees you from carrying cash or a checkbook.
When the debit card is used, the bank automatically transfers the change of a purchase rounded to the next dollar to a savings account.
2319, the Consumer Debit Card Protection Act, introduced by Representative Barrett, limits consumer liability to $50 or less for all unauthorized debit card transactions, including those that require a PIN.
Credit card, debit card, checking and prepaid trends: key demographic groups Debit card usage rationales & influences Debit's competitive advantages: Convenience, safety & spending control Views of checking account/debit card holders & higher-frequency debit card users Bank account opening motivators By segmentation group and demographic Account fee reductions influence on opening a checking account By segmentation group/demographic Fees to use a debit card By segmentation group/demographic Card association debit trends & strategies Discover Financial Services, Inc MasterCard Incorporated Visa Inc.
The report is being released today to precede Monday's meeting of the state Assembly Banking and Finance Committee, which will consider a bill that caps debit card liability for consumers at $50 and requires banks to replace customer's money in two days after the fraud is reported.
Ghana International Bank Unveils MasterCard Debit Card 56
In announcing the change, which will take effect in November, Visa went further in protecting consumers for loss or theft than MasterCard International, which last month capped consumer liability for fraudulent use of debit cards at $50, the same as for credit cards.
The information in this release was originally published in the September 2006 issue of Cardbeat([R])as part of a larger study on debit card purchase authorization.
Not content with just lowering their costs, some banks are also imposing a small fee on each debit card transaction.
Like Visa's credit cards, UJB Financial's Visa brand debit card is accepted at some 11 million Visa locations worldwide.
95 flat fee for Federal balance-due tax payments, no matter the amount, when initiated with a debit card at incometaxpayment.