A debit card (also known as a bank card or check card) is a plastic card that provides the

cardholder electronic access to his or her bank account/s at a financial institution. Some cards
have a stored value with which a payment is made, while most relay a message to the
cardholder's bank to withdraw funds from a designated account in favor of the payee's designated
bank account. The card can be used as an alternative payment method to cash when making
purchases. In some cases, the cards are designed exclusively for use on the Internet, and so there
is no physical card.
[1][2]

In many countries the use of debit cards has become so widespread that their volume of use has
overtaken or entirely replaced the check and, in some instances, cash transactions. Like credit
cards, debit cards are used widely for telephone and Internet purchases.
However, unlike credit cards, the funds paid using a debit card are transferred immediately from
the bearer's bank account, instead of having the bearer pay back the money at a later date.
Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for
withdrawing cash and as a check guarantee card. Merchants may also offer cashback facilities to
customers, where a customer can withdraw cash along with their purchase.
Contents
[hide]
1 Types of debit card systems
o 1.1 Online Debit System
o 1.2 Offline Debit System
o 1.3 Electronic Purse Card System
o 1.4 Prepaid debit cards
2 Advantages and disadvantages
o 2.1 Consumer protection
o 2.2 Financial access
o 2.3 Issues with deferred posting of offline debit
o 2.4 Internet purchases
o 2.5 Overdraft fees

[edit] Types of debit card systems


Debit card


An example of the front of a typical debit card:
1. Issuing bank logo
2. EMV chip
3. Hologram
4. Card number
5. Card brand logo
6. Expiration date
7. Cardholder's name


An example of the reverse side of a typical debit card:
1. Magnetic stripe
2. Signature strip
3. Card Security Code
There are currently three ways that debit card transactions are processed: online debit (also
known as PIN debit), offline debit (also known as signature debit) and the Electronic Purse
Card System.
[3]
One physical card can include the functions of an online debit card, an offline
debit card and an electronic purse card.
Although many debit cards are of the Visa or MasterCard brand, there are many other types of
debit card, each accepted only within a particular country or region, for example Switch (now:
Maestro) and Solo in the United Kingdom, Interac in Canada, Carte Bleue in France, Laser in
Ireland, "EC electronic cash" (formerly Eurocheque) in Germany, UnionPay in China and
EFTPOS cards in Australia and New Zealand. The need for cross-border compatibility and the
advent of the euro recently led to many of these card networks (such as Switzerland's "EC
direkt", Austria's "Bankomatkasse" and Switch in the United Kingdom) being re-branded with
the internationally recognised Maestro logo, which is part of the MasterCard brand. Some debit
cards are dual branded with the logo of the (former) national card as well as Maestro (for
example, EC cards in Germany, Laser cards in Ireland, Switch and Solo in the UK, Pinpas cards
in the Netherlands, Bancontact cards in Belgium, etc.). The use of a debit card system allows
operators to package their product more effectively while monitoring customer spending. An
example of one of these systems is ECS by Embed International.
[edit] Online Debit System
Online debit cards require electronic authorization of every transaction and the debits are
reflected in the users account immediately. The transaction may be additionally secured with the
personal identification number (PIN) authentication system and some online cards require such
authentication for every transaction, essentially becoming enhanced automatic teller machine
(ATM) cards. One difficulty in using online debit cards is the necessity of an electronic
authorization device at the point of sale (POS) and sometimes also a separate PINpad to enter the
PIN, although this is becoming commonplace for all card transactions in many countries.
Overall, the online debit card is generally viewed as superior to the offline debit card because of
its more secure authentication system and live status, which alleviates problems with processing
lag on transactions that may only issue online debit cards. Some on-line debit systems are using
the normal authentication processes of Internet banking to provide real-time on-line debit
transactions. The most notable of these are Ideal and POLl.
[edit] Offline Debit System
Offline debit cards have the logos of major credit cards (for example, Visa or MasterCard) or
major debit cards (for example, Maestro in the United Kingdom and other countries, but not the
United States) and are used at the point of sale like a credit card (with payer's signature). This
type of debit card may be subject to a daily limit, and/or a maximum limit equal to the
current/checking account balance from which it draws funds. Transactions conducted with
offline debit cards require 23 days to be reflected on users account balances.
In some countries and with some banks and merchant service organizations, a "credit" or offline
debit transaction is without cost to the purchaser beyond the face value of the transaction, while a
fee may be charged for a "debit" or online debit transaction (although it is often absorbed by the
retailer). Other differences are that online debit purchasers may opt to withdraw cash in addition
to the amount of the debit purchase (if the merchant supports that functionality); also, from the
merchant's standpoint, the merchant pays lower fees on online debit transaction as compared to
"credit" (offline) debit transaction.
[edit] Electronic Purse Card System
Smart-card-based electronic purse systems (in which value is stored on the card chip, not in an
externally recorded account, so that machines accepting the card need no network connectivity)
are in use throughout Europe since the mid-1990s, most notably in Germany (Geldkarte), Austria
(Quick Wertkarte), the Netherlands (Chipknip), Belgium (Proton), Switzerland (CASH) and
France (Mono, which is usually carried by a debit card). In Austria and Germany, all current
bank cards now include electronic purses.
[edit] Prepaid debit cards
Prepaid debit cards, also called reloadable debit cards, appeal to a variety of users. The primary
market for prepaid cards are unbanked people,
[citation needed]
an umbrella term used to describe
diverse groups of individuals- typically with poor credit ratings- who do not use banks or credit
unions for their financial transactions.
[4]

The advantages of prepaid debit cards include being safer than carry cash, worldwide
functionality due to Visa and MasterCard merchant acceptance, not having to worry about
paying a credit card bill or going into debt, the ability for anyone over the age of 18 to apply and
be accepted without regard to credit quality and the ability to direct deposit paychecks and
government benefits onto the card for free.
[5]

Some of the first companies to enter this market were MiCash, RushCard and Netspend who
gained high market share as a result of being first to market. However, in the past few years there
have been several new providers that carry a number of other benefits, such as money remittance
service, card-to-card transfers and the ability to apply without a social security number.
[citation
needed]

[edit] Advantages and disadvantages

The examples and perspective in this article deal primarily with the United States and
do not represent a worldwide view of the subject. Please improve this article and
discuss the issue on the talk page. (December 2010)
The widespread use of debit and check cards have revealed numerous advantages and
disadvantages to the consumer and retailer alike.
Advantages of debit cards
A consumer who is not credit worthy and may find it difficult or impossible to obtain a
credit card can more easily obtain a debit card, allowing him/her to make plastic
transactions. For example, legislation often prevents minors from taking out debt, which
includes the use of a credit card, but not online debit card transactions.
For most transactions, a check card can be used to avoid check writing altogether. Check
cards debit funds from the user's account on the spot, thereby finalizing the transaction at
the time of purchase, and bypassing the requirement to pay a credit card bill at a later
date, or to write an insecure check containing the account holder's personal information.
Like credit cards, debit cards are accepted by merchants with less identification and
scrutiny than personal checks, thereby making transactions quicker and less intrusive.
Unlike personal checks, merchants generally do not believe that a payment via a debit
card may be later dishonored.
Unlike a credit card, which charges higher fees and interest rates when a cash advance is
obtained, a debit card may be used to obtain cash from an ATM or a PIN-based
transaction at no extra charge, other than a foreign ATM fee.
Disadvantages of debit cards
Use of a debit card is not usually limited to the existing funds in the account to which it is
linked, most banks allow a certain threshold over the available bank balance which can
cause overdraft fees if the user's transaction does not reflect available balance. This
disadvantage has lessened in the United States with the requirement that an issuer obtain
opt-in permission in advance to allow an overdraft on a debit card. Lacking this opt-in,
overdrafts are not permitted for electronic transactions.
Many banks are now charging over-limit fees or non-sufficient funds fees based upon
pre-authorizations, and even attempted but refused transactions by the merchant (some of
which may be unknown until later discovery by account holder).
Many merchants mistakenly believe that amounts owed can be "taken" from a customer's
account after a debit card (or number) has been presented, without agreement as to date,
payee name, amount and currency, thus causing penalty fees for overdrafts, over-the-
limit, amounts not available causing further rejections or overdrafts, and rejected
transactions by some banks.
In some countries debit cards offer lower levels of security protection than credit cards.
[6]

Theft of the users PIN using skimming devices can be accomplished much easier with a
PIN input than with a signature-based credit transaction. However, theft of users' PIN
codes using skimming devices can be equally easily accomplished with a debit
transaction PIN input, as with a credit transaction PIN input, and theft using a signature-
based credit transaction is equally easy as theft using a signature-based debit transaction.
In many places, laws protect the consumer from fraud much less than with a credit card.
While the holder of a credit card is legally responsible for only a minimal amount of a
fraudulent transaction made with a credit card, which is often waived by the bank, the
consumer may be held liable for hundreds of dollars, or even the entire value of
fraudulent debit transactions. Because debit cards allow funds to be immediately
transferred from an account when making a purchase, the consumer also has a shorter
time (usually just two days) to report such fraud to the bank in order to be eligible for
such a waiver with a debit card and recover the lost funds,
[6]
whereas with a credit card,
this time may be up to 60 days, and the transactions are removed without losing any
credit. A thief who obtains or clones a debit card along with its PIN may be able to clean
out the consumer's bank account, and the consumer will have no recourse.
Federally Imposed Maximum Liability for Unauthorized Card Use (United States)
Reported
Maximum Card Holder Liability
Credit Card Debit Card
Before Use $0 $0
Within 2 business days $50 $50
After 2 but before 60 business days $50 $500
After 60 business days Unlimited Unlimited
[7][8]

In the UK and Ireland, among other countries, a consumer who purchases goods or
services with a credit card can pursue the credit card issuer if the goods or services are
not delivered or are unmerchantable. While they must generally exhaust the process
provided by the retailer first, this is not necessary if the retailer has gone out of business.
This protection is not provided by legislation when using a debit card but may be offered
to a limited extent as a benefit provided by the card network, for example, Visa debit
cards.
When a transaction is made using a credit card, the bank's money is being spent, and
therefore, the bank has a vested interest in claiming its money where there is fraud or a
dispute. The bank may fight to void the charges of a consumer who is dissatisfied with a
purchase, or who has otherwise been treated unfairly by the merchant. But when a debit
purchase is made, the consumer has spent his/her own money, and the bank has little if
any motivation to collect the funds.
In some countries, and for certain types of purchases, such as gasoline (via a pay at the
pump system), lodging, or car rental, the bank may place a hold on funds much greater
than the actual purchase for a fixed period of time.
[6]
However, this isn't the case in other
countries, such as Sweden. Until the hold is released, any other transactions presented to
the account, including checks, may be dishonoured, or may be paid at the expense of an
overdraft fee if the account lacks any additional funds to pay those items.
While debit cards bearing the logo of a major credit card are accepted for virtually all
transactions where an equivalent credit card is taken, a major exception in some countries
is at car rental facilities.
[9]
In some countries, such as Canada & Australia, car rental
agencies require an actual credit card to be used, or at the very least, will verify the
creditworthiness of the renter using a debit card. In Canada and additional unspecified
countries, car rental companies will deny a rental to anyone who does not fit the
requirements, and such a credit check may actually hurt one's credit score, as long as
there is such a thing as a credit score in the country of purchase and/or the country of
residence of the customer.
[edit] Consumer protection
Consumer protections vary, depending on the network used. Visa and MasterCard, for instance,
prohibit minimum and maximum purchase sizes, surcharges, and arbitrary security procedures
on the part of merchants. Merchants are usually charged higher transaction fees for credit
transactions, since debit network transactions are less likely to be fraudulent. This may lead them
to "steer" customers to debit transactions. Consumers disputing charges may find it easier to do
so with a credit card, since the money will not immediately leave their control. Fraudulent
charges on a debit card can also cause problems with a checking account because the money is
withdrawn immediately and may thus result in an overdraft or bounced checks. In some cases
debit card-issuing banks will promptly refund any disputed charges until the matter can be
settled, and in some jurisdictions the consumer liability for unauthorized charges is the same for
both debit and credit cards.
In some countries, like India and Sweden, the consumer protection is the same regardless of the
network used. Some banks set minimum and maximum purchase sizes, mostly for online-only
cards. However, this has nothing to do with the card networks, but rather with the bank's
judgement of the person's age and credit records. Any fees that the customers have to pay to the
bank are the same regardless of whether the transaction is conducted as a credit or as a debit
transaction, so there is no advantage for the customers to choose one transaction mode over
another. Shops may add surcharges to the price of the goods or services in accordance with laws
allowing them to do so. Banks consider the purchases as having been made at the moment when
the card was swiped, regardless of when the purchase settlement was made. Regardless of which
transaction type was used, the purchase may result in an overdraft because the money is
considered to have left the account at the moment of the card swiping.
Q . Difference between ATM card and DEBIT card???
Obviously there is a difference between an ATM card and a debit card. An ATM card only allows you to
draw cash from your account through an ATM (Automated Teller Machine). A debit card allows you to
make financial transactions (purchases mostly) without paying cash. The payment is made by swiping
your debit card in a machine at a shop where you made the purchase. The value of your purchase is
automatically deducted from your balance in your bank account.
Nowadays, banks provide ATM debit cards, which can be used for both the purposes mentioned above.
Similarly, ATM credit cards are also available. A credit card also allows you to make payments on
purchases without paying cash. But instead of debiting the value of the purchases to the balance in your
bank account after swiping the card at a shop, the bank settles the bill on its own and sends you a
statement showing the different transactions entered into by you using your credit card. You have to
settle the amount with the bank within a stipulated time. Additionally, credit cards allow you to make
cash withdrawals upto certain limits from ATMs using your ATM credit card which has to be repaid
within a stipulated period. Obviously credit cards have no relation to your bank balance.
Visa, MasterCard (Maestro is an arm of MasterCard) are international service providers for transactions
made with ATM, debit or credit cards. Banks issuing such cards usually tie up with one of these and their
logo is printed on that card.
An international debit card allows you to settle payments on purchases outside your country using that
card. The countries where a particular international debit card is acceptable is made known to the card
holder by the issuing bank.

Q .How to use atm card???
ATMs, standing for "Automated Teller Machines", are an easy, convenient way to access your
account from almost anywhere. If you're new to them, don't worry. It's easy. The instructions are
right there, on the machine.
Steps
1. 1
Be alert. As you approach the ATM, look around for other people. If it is night time, pick an ATM
in a well-lit location. If using a drive-up ATM, pull up close to it so no one can see you enter your
PIN (Personal Identification Number). If you are uncomfortable with the area or the people
around the machine, find a different machine or use the machine some other time.
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2. 2

Fill out a deposit slip, if needed. (Click any image to enlarge.)
Take an envelope and prepare any deposits you will make ahead of time.
o Fill out a deposit slip, if your bank requires one, and include it in the envelope. Write the
amounts of money you are depositing in the space provided.
o Write the total of all your cash on the first line.
o
Endorse your check.
To deposit a check, sign the back of the check (called "endorsing" the check) with your
name as it is written on the front. Depending on the rules of your bank, you may also
write "for deposit only" and include your account number, as shown.
o Write the amount of each check on a line of the deposit slip. Beside it, write the
"fraction". This number appears on the face of the check, often in the upper right corner
near the check number
[1]
. It tells your bank where the check came from.
o Add up the amounts you are depositing and write the number down where you can see
it after you seal the envelope. Then, seal the envelope.
3. 3
Insert your ATM Card into the machine.
4. 4
Select a language. Note that this option often only comes up where your card is registered as
being from another country, unless you live in a country or region with languages other than
English are in major use.
5. 5
Enter your PIN (Personal Identification Number), then press Enter. Make sure you enter the
correct pin.
6. 6
Select a transaction.
7. 7
Deposit money. If you want to deposit (put in) money:
o Enter the amount you will deposit. Confirm the amount.
o Insert the envelope into the deposit slot when the machine opens it. Note that some
ATMs will not allow you to deposit money. In this case, you need to find one at a
branch.
8. 8
Withdraw money. If you want to withdraw (take out) money, select or enter the amount to
withdraw.
o Most machines dispense money in fixed amounts. You may be given a choice between
common amounts or you may be asked to enter a number that is a multiple of 20 (20,
40, 60, 80, etc.).
o Take the cash when the door opens. Put it directly into your wallet.
9. 9
Choose whether to do an additional transaction. Select Yes or No.
10. 10
Choose whether you want a receipt, select Yes or No. Take the receipt if you requested it.
11. 11
Wait while the system processes your transaction(s).
o When the machine beeps at you, take your card, cash, and receipt (if applicable). Always
make sure that you have both your cash and your card.
12. 12
Use the receipt to record the transaction in your check register or passbook.