Other card networks are STAR, JCB, Pulse etc. The 5 major debit card networks are UnionPay, American Express, Discover, Mastercard, and Visa. One physical card can include the functions of all three types, so that it can be used in a number of different circumstances. There are currently three ways that debit card transactions are processed: EFTPOS (also known as online debit or PIN debit), offline debit (also known as signature debit), and the Electronic Purse Card System. Most debit cards are plastic, but there are cards made of metal, and rarely wood. There are usually daily limits on the amount of cash that can be withdrawn. Merchants may also offer cashback facilities to customers, so that a customer can withdraw cash along with their purchase. Since the mid-2000s, a number of initiatives have allowed debit cards issued in one country to be used in other countries and allowed their use for internet and phone purchases.ĭebit cards usually also allow an instant withdrawal of cash, known as a cash advance, acting as an ATM card for this purpose. The development of debit cards, unlike credit cards and charge cards, has generally been country-specific, resulting in a number of different systems around the world, which were often incompatible. In many countries, the use of debit cards has become so widespread they have overtaken checks in volume, or have entirely replaced them in some instances, debit cards have also largely replaced cash transactions. In some cases, the payment card number is assigned exclusively for use on the Internet and there is no physical card. Some debit cards carry a stored value with which a payment is made (prepaid card), but most relay a message to the cardholder's bank to withdraw funds from the cardholder's designated bank account. These are similar to a credit card, but unlike a credit card, the money for the purchase must be in the cardholder's bank account at the time of a purchase and is immediately transferred directly from that account to the merchant's account to pay for the purchase. The term plastic card includes the above and as an identity document. Please consult your financial advisor before making any financial decision.A debit card, also known as a check card or bank card is a payment card that can be used in place of cash to make purchases. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. It is not a substitute for specific advice in your own circumstances. The contents are generic in nature and for informational purposes only. The contents of this article/infographic/picture/video are meant solely for information purposes. They are designed to make your day-to-day transactions seamless and convenient. For instance, IDFC FIRST Bank Debit Cards may offer free airport lounge access, cashback rewards, complimentary accidental insurance, and more. Depending on your bank, there may be different debit cards that offer different benefits and rewards. Hence, it makes more sense to opt for a debit card than an ATM card. So, a debit card serves the purpose of an ATM card and offers several other benefits. At the same time, a debit card, in addition to withdrawing funds from ATMs, can also be used to make other transactions such as domestic and international purchases, bill payments, etc. An ATM card can only be used to withdraw cash from ATMs. The difference between ATM and debit cards boils down to their utility. You can use your debit card to check your account balance as with ATM cards.Debit cards tend to have higher daily withdrawal limits than ATM cards.Another difference between an ATM vs debit card is that you can use a debit card to utilise the overdraft facility provided by your bank.Most debit cards come with reward points that you can earn when purchasing your card.You can pay utility bills and recharge your phone with a debit card.You can also use debit cards for internet banking services and make international payments.It is the biggest ATM card vs debit card difference. A Debit Card is a multi-functional card, and you can use it for online and offline transactions and for withdrawing cash from ATMs.
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