Until recently, non-cash payments were available only to organizations that conducted such operations through settlement accounts. But then plastic cards firmly entered everyday life, which citizens were granted the right not to carry cash and at the same time freely buy goods and pay for services.
Now there are two types of bank cards: credit and debit. Here we will try to explain what a debit card is.
Debit Card Essence
In appearance, it is very difficult to understand what function is assigned to this piece of plastic. The information here is enclosed in the card number and special codes, the decoding of which presents great difficulties for the simple user. And so - the systems are the same as usual. Most often, VISA or MASTERCARD plus the logo of the bank that issued it.
It’s easier to understand what a debit card is if you imagine a kind of electronic wallet, where funds from various sources come. Moreover, the financial institution will not accrue interest on the use of money. Some banks tried to attract new users by making a deposit from the card, but this practice was not widespread - there are software difficulties.
What operations can be carried out with its help
Otherwise, a debit card provides the same opportunities as a current account with legal entities. To begin with, the moment a bank card is issued , an account is opened for you. After that, you can perform the following operations:
- deposit money into the card account;
- remove them within the daily limit determined by the bank;
- carry out non-cash payment of goods at points of sale equipped with POS-terminals;
- pay for services of various organizations (housing and communal services, etc.) from stationary terminals;
- make cashless payments for goods and services on the Internet;
- receive statements of operations and account balances and so on.
Not only that, the question of what a debit card is, are increasingly asked by individual entrepreneurs . Tax authorities are already paying close attention to the need for freelancers to register card accounts with inspections. And the farther, the stricter.
Nevertheless, more often Sberbank debit cards are used for simple cash withdrawals. Therefore, most acquire such a card to receive money from employers. Most companies generally switched to paying remuneration for work by transferring to a card. Moreover, in this capacity they most often use debit cards of Sberbank. After all, this institution has the most common ATM network.
Features of such cards
In debit cards, users are attracted by the fact that the holder has almost no obligations to banks. Once a year, the cost of maintenance is automatically debited from the account - that’s all. A citizen can only replenish his capital in a timely manner. It is interesting that it cannot be converted into a credit form - a separate agreement must be concluded.
The debit card can be controlled remotely via online services or mobile communications. Of course, you won’t get cash in this way, but it’s easy to make payments or get information about account movements.
Initially, the card currency is determined by the agreement, but if necessary, it can be converted, which is especially important abroad. The only problem is the high exchange commission. However, a separately executed debit card with the desired currency will save you from unnecessary expenses. This is what experienced travelers usually do.
We hope that we were able to explain to you what a debit card is. By all accounts, this is a very convenient and useful payment tool. Most importantly, it eliminates the difficulties associated with cash.