How Does A Debit Card Work?

A debit card is a plastic card issued by banks to customers, for the purpose of making instant purchase by removing the right balance from the user’s attached bank account. It takes the form of a credit card, but allows you only to purchase for the amount of money in your attached bank account. For getting easier access to your money when you are making online purchases, online money exchangers such as Global Xchange and Paypal also use debit cards. Some debit cards come with a Visa or Mastercard logo and most debit cards have two features: One is the right and ability to purchase items at shops that have automated debit card machines and the other feature is to withdraw cash from your bank account at an ATM. Read on the article to know more about how a debit card works.

How To Use A Debit Card
First of all, the store provider must be willing to accept your debit card. Thus, you can use your debit card as you would use a credit card. For example, if your card has a VISA logo in it, you can use it wherever VISA card is accepted. You must have an available amount of money in your account to use the debit card. You can’t purchase goods using debit if your attached bank account is empty while you can use a credit card without having money in the account but up to the prescribed credit limit only. Certain banks offer a line of credit or overdraft account to attach to your bank account. If your account is of this kind, you can use your debit card to that extended limit. 

Advantages Of Using A Debit Card
One big advantage of a debit card is that you don’t have to keep money in your purse, if you want to make big purchase. Carrying a big amount of money with you is not a safe thing to do. Debit cards have other advantages too. Nobody can rob your money and get away with it. If somebody steals your debit card, they need your pin code to get the money because card alone won’t work. If the card is stolen, you can report it to the bank from where the card has been issued. Once you inform the bank officials, your card will be immediately blocked or cancelled and no one can take your money even if they have your pin code number. When you are shopping, you don’t have to worry about the money in your pocket if you have a debit card. Even if your shopping cost a little more than the money you have in your purse, you don’t have to be frustrated. You can buy it using debit card. 

Forget The Debts 
You may be a person who is much worried about the debts you make by using credit cards. Credit cards really make one a ‘Shopaholic’ and eventually lead to big debts. A debit card doesn’t let you get into debts and the best part with debit cards is that, it can be used in the same way in which you use the credit card. The only difference is that you need to have money in your bank account. You can purchase and book almost everything using a debit card and you will not be able to over purchase and that will help you in keeping your finance in check.