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What are the Different Types of Debit Cards?

Basically, a debit card is a payment card where money is deducted straight from the cardholder’s checking account when used for transactions. So yes, a debit card is the financial tool you need if you want to be spared from the burdens and hassles of carrying physical money with you anywhere you go.

Sometimes known as check cards, a debit card offers users convenience that’s often associated with credit cards. This includes some of the consumer protections that major payment processors like Visa or MasterCard offers.

Unlike credit cards however, debit cards often come with daily purchase limits. That means users are spared from the risk of spending beyond their means. Also, unlike credit card users, a debit card user won’t have to worry about shelling out money for costly interests, charges, and other unwanted or hidden fees.

type of debit card

Debit Card Essentials

Debit cards are known to have a dual purpose: they allow cardholders to withdraw money from their checking accounts through ATMs or through cash-back functions that are provided by merchants at point of sale. Also, debit cards can be used by users to make purchase transactions.

Purchases that are done using a debit card are done with or without the use of a personal identification number or PIN. If the debit card happens to be associated with some of the major credit and financial institutions like MasterCard or Visa, cardholders can use it just like a credit card—no need for the user to go through the risk of exposing their PINs.

Money for any transaction will be deducted directly from the debit card user’s checking account. No finance charges will be deducted from the account when a debit card is used just like a credit card. Fortunately, just like credit cards, some debit card issuers provide reward programs to its users.

Different Types of Debit Cards

Debit cards are considered by many to be innovative and practical financial tools for those who are looking to make different types of purchases. Since transactions using the debit card are immediately deducted from the user’s bank account, it is easier for them to track money and adhere to the budget they have identified.

While there are several types of debit cards, some of the most common include:

  • Online debit cards

Transactions using this type of debit card are secured using the PIN and will be validated every transaction.

  • Offline debit cards

This type of debit card often carries the logo of large credit institutions like MasterCard or Visa. When the card is used for transactions, the user’s signature will be required. In addition, transactions that are done using debit cards will be reflected in the user’s account balance after 2 to 3 days.

  • Prepaid debit cards

This type of debit card is also more known as reloadable debit card. Those who will use this type needs to load money onto it first before they can use it for any transactions. Many love using this type of card since apart from being secure, they are provide users with easy and quick access to cash.

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Balaji is an international development specialist and author of several publications on socio economic development. Balaji is a regular contributor to online article sites on the topics of on line education, underserved peoples, scholarship and educational excellence.