What is a debit card?

Credit Card Nigeria

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Posted by on Tuesday December 4, 2012 at 16:23:37:

We often hear the terms debit and credit cards but not really sure what they mean. What really is a debit card?

A debit card is simply an electronically powered card that allows the holder to access funds existing in his bank account. Each time he makes use of those funds that are cash backed, his account becomes debited while the receiver's account becomes credited.

A debit card unlike a credit card does not carry interest on credit since you are not accessing credit for funds you already own. Unlike a credit card, a debit card gives you the ability to spend your own money

Debit cards come as a physical plastic card that carries a card number, security code and PIN for making transactions. As a card product, it allows you to carry money wherever you go without having to carry physical cash. Debit cards makes it easy to move money even more securely.

Debit cards can be used to make withdrawals from ATMs, make payments through POS terminals as well as online payments. The good thing about debit cards is that you only spend your own money and not borrowed money. So you no longer need to queue at your bank just to make withdrawals from your account.

Tips for using a debit card
- Try to monitor charges to your account
- Make a formal complaint to the bank when you experience unusual charges or deductions. It could be the bank's error.
- Keep your PIN safe even from close family.


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