what is a debit card

What is a Debit Card? Definition, Uses and Eligibility

Are you wondering what is a debit card? So if you have any such question in your mind about what a debit card is, then today you’ll get the answer. This question will arise in your mind when you newly have a bank account. Debit card is a name widely known in the banking world.

In the current banking era, every bank has a debit card. And almost every bank user uses this card. Because there are many effective uses of debit cards, there are many benefits.

Payments can be made directly from a bank account using a credit card network without the hassle of issuing checks with debit cards or other paperwork. Banks can issue both debit and credit cards. But the function of this plastic payment option is not the same.

Debit cards basically work like your bank checks. Many people call debit cards electronic checks. And there is a reason to say so. Because when you buy something or pay a bill using your debit card, your paid bill is shown to be withdrawn directly from your bank account.

Typically, debit cards are directly linked to a bank account. Everyone needs to know what a debit card is, how it works, and the advantages and disadvantages of this card. In today’s long article we will learn more about debit cards.

What is a debit card?

A debit card is a plastic card issued by a bank or financial institution, similar to an ATM card. After opening an account with any bank, the plastic payment card that is issued is basically a debit card, or ATM card. In most cases it acts as an ATM card. This card is often called a check card or a bank card.

Since it acts as an alternative to check, it is also called an electronic check card. With this card, money can be withdrawn from ATM booths, online payments can be transferred and other expenses can be incurred. However, this card is best known to the customer as the “ATM Card”.

However, nothing more than the amount deposited in the account with the debit card can be spent. If you withdraw cash or transfer the balance to someone, you can make as much money as you have in your account. So, you can think of a debit card as a prepaid SIM card.

You can’t spend more than the balance on the SIM card. The same goes for debit cards. Although you can do a lot with a debit card, you need to have a balance in your bank account. Basically, your account is your debit card, which you carry around in your pocket.

What is a debit card number?

You must have seen a number on the debit card. In the case of international banks, this number is 16 digits. However, there are exceptions. Some banks’ debit card digits are 11 digits. No matter the number of digits, this debit card number is unique.

Digits are usually divided. In most cases, it is separated by 4 digits. The first part is the bank code and the next digits are the customer’s unique number, which in the language of the bank is called the user identification number.

What is the PIN number of the debit card?

The number that is set to access the debit card is the PIN number of the debit or ATM card. This PIN number has to be set by the cardholder and kept secret from others so that no one but the customer can access it.

This PIN number of a debit card is 4 digits. This PIN number has to be input whenever you want to withdraw money from an ATM booth, make a purchase payment with a card, or transfer money from one card to another, or even do any work including mobile recharge.

What’s in a debit card?

Debit cards consist of two sides. Front side and back site.

What’s on the front side?

  • The name of the card. E.g. ATM / Shopping Card.
  • The name of the bank. E.g. Dutch-Bangla Bank.
  • Bank logo.
  • An 11 or 12 digit number known as a card number.

What’s on the back side?

  • Cardholder name. E.g.- Miler Smith.
  • Cardholder signature.
  • Bank address, corporate and branch address.

How many types of debit cards?

Different countries have different types of debit cards based on usage. The debit cards that can be seen in terms of name usage are given below.

  • Visa debit card
  • Silver debit card
  • White debit card
  • MasterCard debit card
  • Personal debit card

How does a debit card work?

When someone opens a bank account, the bank authorities issue a debit card in his name. If the bank does not issue the card on its own, the customer can apply for the card on its own. This usually does not require any additional paper, as all the required paper is submitted at the time of opening the bank account.

When you get a debit card, the first thing to do is to activate it. The activation process is different for each bank. However, in most cases similarities are found. You have to set the PIN number of the card by calling a special number or via SMS. Most bank PIN numbers are four digits.

Once the card is activated, the customer can use it from time to time. Debit cards are usually used for two purposes. The first is to withdraw cash from the ATM booth with the card. The second is to buy-cut or pay the bill with the card.

Keep in mind, whenever a user cash out or pay a bill for something, the money is basically deducted from his bank account.

►► See More: What is a Credit Card?

Last word

You need to have money in your bank account in advance to spend money from a debit card. There is no such thing as your monthly income or job or your credit limit. The only thing is that you have money and that money you are paying or spending through the electronic payment system.

Debit cards do not usually work internationally. However, in many cases the bank may give you the opportunity to use your debit card outside your own country through certain conditions and activities. However, it depends entirely on the decision of the bank. Even if you are given the opportunity to use the debit card internationally, you will still need an international passport.

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