Apply for debit card- an easy and safe method to withdraw cash or make online payments.

What is a Debit Card?

A debit card is a replica of a credit card. It is a pocket size card made of plastic or poly vinyl chloride. This card can very conveniently fit into a man’s wallet. This debit card is also issued to the applicant either by a bank or a credit union or financial institute.

A debit card, as the name suggests, debits money from card holder’s account. A debit card transfers the requisite amount of money from the card holder’s account to the other party’s bank account directly.

Debit card is used to make payments. When a debit card holder makes a purchase of products, goods or services, he/she can make payments through his/her debit card in place of cash. A payment made by a debit card is as good as payment made in cash. The only difference is instead of the buyer giving cash to the seller’s hands, a debit card arranges immediate transfer of funds from the buyer’s bank account to the seller’s bank account. That much amount of money is debited from buyer’s bank account and is credited in seller’s bank account

How does a Debit card look like?

How does a debit card work?

A debit card works only by debiting money from the debit card holder’s account and transferring the amount to the bank account destination the card holder desires to transfer. To make a Debit Card functional, the debit card holder must have sufficient money in his/her bank account. The debit card holder is issued a Personal Identification Number (PIN) with the debit card. The debit card holder has to use that PIN each time he/she uses the debit card. The moment a debit card is used, the merchant puts a hold on the card holder’s account. On completion of transaction, the money is debited from the card holder’s account and it shows up in his/her cleared transactions.

Debit cards are also used as Automatic Teller Machine (ATM) cards. This enables the debit card holder to withdraw cash money from his/her account from an ATM machine. The card holder needs to use the same PIN for withdrawing cash from a ATM.

Unlike Credit cards, debit cards are free of cost and are very inexpensive as it does not involve any interest payments for money transactions. Some of the regular charges like bank service charges, ATM charges, or money transaction charges may be charged as per bank rules, applicable to all. These charges are very nominal and are automatically deducted from the debit card holder’s account. Unlike credit cards, debit cards do not involve any pecuniary measures for any action and are very safe in that aspect.

How to apply for a Debit Card?

When anyone opens a bank account in any bank, the bank provides the customer an ATM card. This ATM card works as a debit card and there remains no need to apply for a debit card apart from this. The customer needs to activate the ATM card as soon as possible with the PIN given along with the card. In case, any one does not receive an ATM card with opening a bank account, the account holder may have to apply to the bank authorities to issue one, but it seldom happens.

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