What is a Debit Card?
A debit card is a plastic card (similar to a credit card) that allows consumers pay for goods and services by withdrawing directly out of ones bank account, instead of using cash.
Since its introduction in 1996, the debit card has taken up on many names. We have all come to know the debit card as the following, ATM card (Automated Teller Machine), bank card, check card and MAC card or simply by its technical name the electronic card.
With wide spread use, debit cards have replaced cash and traditional checking; our world today is nothing but electronic payments. Debit card use is up on a global scale, according to the 2007 edition of the ATM & Debit News EFT Data Book. In 2007 debit card usage surpassed credit card use, estimated at 26.6 billion Debit Card transactions.
Today’s debit card has taken on a different personality then its past predecessor, by merging several accounts, checking, saving and ATMs. Making these accounts into one function where the user is allowed to make purchases ranging from the local super market to simple online purchases and withdrawing cash from ATM machines 24 hours a day 7 days a week. With the boom of the internet many of our purchases are electronic therefore creating the need for the electronic check card. Forrester Research projects, that online retail sale which does not include travel will reach 11 percent to $156 billion in 2009.
What types of Debit Cards Are Available?
The most common debit card is the bank card, which is issued to us by our bank when we open a checking account. We can also include on this list the prepaid debit card, fill and pay as you go which includes the same benefits. All debit cards bare the Visa or Master Card logo because all transactions are processed by the two parties.
What Features Does a Debit Card Typically Have?
Today’s debits cards offer a wide range of rewards programs; we get rewarded by the purchases we make. For example, every time you charge the card you earn reward points like a credit card. The popular credit card rewards programs are transitioning to the debit card and it has taken on the identity of a credit card. The debit card holder can also link the debit card to their savings, accessing cash from both savings and checking when using the debit card at an ATM location. Like the credit card, the debit card has the same functionality. Many debit cards offer 24 hour customer service assistance as well as online account management. Like credit cards they typically protect against fraudulent charges in case the card is lost or stole.
Another great benefit is enrolling in online bill pay, where you can pay your monthly bills through the debit account electronically. The holder of the card has the means to deposit and withdrawal cash continuing the life cycle of the card. Unlike credit cards where the issuer determines your credit line and interest rate based on your credit history; as the debit card holder you are the one who decides what the spending limit is. This is very similar to an actual secured credit card. The amount deposited determines the spending power.
A great perk to remember when owning the debit card is that typically, there are no monthly or annual fees and verification of credit or employment history. See terms and conditions for each card offer. Specific debit cards report to the 3 major credit agencies, creating credit history. (Equifax, Trans Union, Experian) This can be beneficial to someone who is looking to establish a credit rating.
Why Should I Apply for a Debit Card?
With the rise of credit card debt, individuals are looking into healthier alternatives to credit cards. Most debit cards are a great way to start rebuilding and establishing credit. They also provide convenience to purchasing power, without having to carry cash in your pocket. Also, by using a debit card, you eliminate the risk of "abusing" our credit line an getting yourself into debt.
Where Can I apply for a debit card or other credit cards?
CreditCardFactory.com offers a wide range of debit card applications. Take advantage now and apply for one. It's as easy as one, two, approved. Below are some links to some of our most popular credit card offers. If you are looking for an actual credit card application online, feel free to review some secured credit cards (for people looking to establish credit) and some unsecured credit card offers.
