Archive for the ‘Debit Card 101’ Category

The Visa debit card is also known as the Visa check card. These two terms are one and the same. A Visa electron debit card is also offered by some banks or financial establishments. Note that Visa debit cards are linked to your checking account and functions like a check because any amount used during any transaction using the card is deducted from the said account.

To get a Visa debit card, you need to consult your bank or financial institution if they offer one that can be linked to your existing or new checking account. The qualifications for credit don’t apply to a Visa debit card because the requirements needed are for a checking account, where the funds will be deducted from similar to how a check functions. As compared to a check though, the benefits include better convenience, security, and transaction monitoring or record keeping.

A Visa debit card can be used in many ways when purchasing depending on the system used by the merchant. Some would require you to affix your signature on the receipt just like most credit cards. Sometimes, you will be required to enter your personal identification number (PIN) that you use in ATMs. Others will simply swipe your debit card with no signature required. Again, this will depend on the terminal used by the merchant that you transact with.

Prepaid Visa Cards vs. Debit Visa Cards

There are some general confusion with regards to a prepaid card and a debit card, and that applies to Visa cards as well. In the Visa website, the Visa Debit Cards/Visa Check Cards are clearly classified separately from a Visa Prepaid Card/Visa Gift Cards.

In general, debit cards are linked to a bank account from which any transaction using the card will automatically deduct the amount from the said account. There is no balance stored in the card, meaning that the monetary value reflects that of the bank account. This means that in the case of a Visa debit card, the Visa debit card balance is the same as the balance in your bank account.

A prepaid card in contrast somewhat stores the value in the card itself. It doesn’t need a bank account to deduct the amount of the items that you purchase. The prepaid card comes with a pre-determined amount when bought, and any succeeding transaction will automatically deduct value from the prepaid card balance until such time that the card value is depleted.

To know more about the Visa debit card, it is highly recommended that you read the FAQ listed in the Visa website. You can also talk to your bank or respective financial institution about the Visa debit card that they offer.

A Business Debit Card is a type of debit card that are used by companies to purchase supplies for business use. The business debit card also comes in a plastic card that can be used in swiped transactions. Companies, sole traders and partnerships use this type of debit card to charge all expenses into one account officially used by the company. Some companies prefer to use prepaid business debit cards.

Business Debit cards work like normal debit cards and can be used to withdraw cash from the card using an ATM.

When you use a business debit card, you have the flexibility in carrying out transactions. Cardholders just need to carry the card and one does not need to bring cash or cheque offering more convenience and safety. The business debit card however, should not be used for personal use.

Features of a Business Debit Card:

• From your Business Debit card, you can withdraw cash using ATMs. You can also easily monitor its balance information
• You can use your business debit card to transfer funds to associated accounts
• You can use your business debit card as a cheque guarantee

Benefits of Using Business Debit Cards:

• There is no annual charges and finance charges unless you use an overdraft of your credit
• Cardholders are issued a PIN (Personal Identification Number) for increased debit card protection
• You can use your card to purchase items and pay for services over the telephone and internet
• You can obtain a copy of your monthly detailed statement of account for better record keeping and management of your funds. It can also help in accounting as it usually includes the detailed debit card transactions, tax deductions, and other charges
• You can enjoy discounted offers from several establishments for using your business debit card
• You will be able to use your business debit card instead of shelling out money from your own personal funds
• Purchases made using business debit cards usually come with an extended warranty in case of damage or theft
• Most business debit cards come with an insurance coverage

A Debit MasterCard BusinessCard or business debit MasterCard is one type of business debit card offered by MasterCard. An advantage of using the Debit MasterCard is that you can set a variable daily limit for your card thus having a better security against fraudulent transactions.

On the other hand, VISA also offers its own set of debit cards called the VISA check card. This is attached directly to your checking account, meaning that every time you make a purchase using this, the amount is deducted directly from your checking account. This provides more convenience and security protection.

Other banks and institutions are also providing several helpful tools that come when you avail of their business debit cards. The applications or tools are free and can help you analyze your spending and help you with your budgeting. This is really handy in organizing your data and achieving a better management of your expenditures.

Interested users of business debit cards often check out information on online business checking account

Some people, especially those on business trips, are provided with traveler’s checks. The reason being is for their convenience, safety and savings. However, many folks narrate their unfortunate experience regarding these checks. Most complain about being charged with a high rate upon exchanging them to the bank or other money exchange booths.

Other people state that they have better experience because they use a debit card or a travel credit card instead of the traveler’s check. The result? Big savings in currency exchange. In one encounter, a writer stated that he had to exchange $200 of travelers’ checks overseas at a cost of $8. During the same trip, he used his debit card at an ATM to get $200 from my checking account. The charge was just a dollar.

Travel Credit Cards and Debit Cards

Credit card and debit cards function differently. The former actually allows you to have cash advance or use the card for purchases even without a cash balance. The perks attached to travel credit cards are more related to travel, leisure and vacation. Debit cards on the other hand are linked to an existing bank account, either a savings or a checking.

When in a travel, it is best to carry a credit card and a debit card but should keep them secured in two separate places. Bring cards that have either zero liability, or a fifty dollar liability limit for any unauthorized charges. This basically gives more security and a relaxed feeling on your part.

It’s also suggested that you use widely accepted credit or debit cards such as Visa, MasterCard or American Express cards. This will give more flexibility on your end because of the millions of merchants that accepts the card.

Why two cards?

If you want to withdraw money, sometimes an Automated Teller Machine (ATM) won’t take a card for unknown reasons. There are also instances when some businesses won’t allow transactions using certain of card. That’s when the second card comes to the rescue, giving you outright relief.

Other Benefits

Some companies that offer a travel credit or debit cards allow you to earn points called miles. When they reach a certain amount, these miles will let you book another trip a discounted price or even free. This type of promo is offered by a lot of airline companies. It is highly recommended that you know the promo affiliated with the card that you hold.

A Virtual debit card is an online account, which is used like a normal debit card to make purchases online. A virtual debit card does not come with a physical card. You only use it online, and you cannot use them for swiped transactions. One popular example is Paypal virtual debit card, which is a free virtual debit card.

Virtual debit cards have been commissioned due to the increasing popularity and trend of online shopping, and other transactions that use the internet. Most virtual debit card accounts come in a paper or a form issued through your email, wherein you will see your Account Number, Expiration date, and verification code that you can use whenever you make purchases online, by phone, or even by mail order. Most virtual debit card is also a prepaid virtual debit card.

Two types of Virtual Debit Card

1. Fully Virtual Debit Card – does not come with a card
2. Partially Virtual Debit Card – still comes in a plastic card

Features of a Virtual Debit Card

• Virtual debit card is not associated with the physical card although some companies that offer virtual debit cards issue an actual card making it a ‘partially virtual debit card’. This physical card though does not contain a PIN, and cannot be used in over the counter transactions or physical point-of-sale purchases.
• Virtual debit cards offer low charges. This is due to a large volume of online transactions that are fairly comprised of small payments per customer

Advantages of Virtual Debit Card

• One advantage of using virtual debit card is it makes payment convenient. It can be used almost anywhere in the world where internet access is available. It can also be used for purchases over the phone.
• A big plus is it makes the user worry-free, because you do not have a physical card, you have no chance of losing it, so your account remains intact.
• Virtual debit card is also a type of debit card, in which it allows you to control your spending, since you can only use the account until it runs out of fund.
• Very low charges can be expected from virtual debit cards. It also does not have a periodic charge unlike credit cards. The companies offering these are able to earn their revenue by an interchange fee on every transaction made from their system.
• Good virtual debit card companies have systems that automatically fill out the shipping and billing forms upon checkout, thus protecting you against fraudulent sites like fake eBay and the like.
• Some virtual debit card systems generate a unique and random Virtual Card Number in place every time you make a transaction online thus protecting your real debit card number
• Better security is in place since most transactions using virtual debit cards would require inputting the security image to avoid automated theft. Another security image or code can be applied to the system if this is being offered by the company. This would mean additional security whenever you log-on to your account and check out payments.

Disadvantages of Virtual Debit Cards

It does not have a physical or plastic card, and you cannot use it for face-to-face transactions which require you to present and swipe your card.

How to Get or Buy Virtual Debit Card

Anyone can apply for a virtual debit card. If you are applying for a virtual debit card from a bank or other financial institutions, you can ask for a form that you can fill out. Once they verify and save your information, they will issue you a letter, containing the PIN which you can use for transactions.

If you are applying online, it is easier. Just go to the website of the company offering the virtual debit card and fill out the application form online. The account number, expiration date and verification code will be sent to you.

Barclays debit cards are debit cards that are being issued to customers by Barclays Bank. A customer who has a current account with Barclays Bank can usually avail of the different types of Barclays debit card. This is utized just like a normal debit card, which can be used to pay for items and services as an alternative to cash. For some companies, you can also use it to withdraw cash from ATMs.

The Barclays Debit Card is especially useful for travelers with convenience of being able to use the card from a worldwide network of more than 780,000 cash machines.

There are two major types of debit card offered by Barclays Bank:

1. Barclays Deferred Debit Card- a type of Barclays debit card that is used as an international debit card and can be used securely. Transactions are charged as a single debit in a monthly basis. This card can also be used to pay for items and services and can be used to withdraw cash from ATMs
2. Barclays Connect Card – a type of Barclays debit card that can be used to withdraw money from cash machines and pay for things in shops and other outlets. You can also use this Barclays debit card to pay for goods and services in outlets worldwide

Major uses of Barclays Debit Card:

• Card can be used to purchase items or pay for services offered by several outlets, restaurants, hotels and other establishments which carry the VISA or Electron signs worldwide
• Withdraw up to £300 per day in local currency from ATMs with VISA Sign using Barclays Connect Card. Electron card is also accepted at ATMs with the PLUS sign.
• No charge incurred when you use your Barclays card at cash machines within the Global Alliance

Generally, transactions using a Barclays Debit Card are free except for the following instances:

• Withdrawing sterlings from a non-Barclays branch overseas
• Withdrawing sterlings from an ATM in UK which charges a minimal 2 percent (min £1.50 max £4.50)
• Acquiring traveler’s cheque or foreign currency at places other than branches of Barclays Bank, its official website, and via Barclays Travel Line.

When you purchase or withdraw overseas using your Barclays debit card, it is converted to sterling using the official exchange rate set by the market and/or the government during that day the amount is debited to the card.

If you want to use your card overseas, it’s a good habit to phone Barclays Bank to avoid cases wherein the card will be stopped due to the notion of fraudulent transactions being used abroad or thinking that the card was stolen from the legitimate user and used abroad.

There are ‘personal bankers’ who are banking specialists of Barclays Bank who can help you with questions you may have about our products and services.

For more information, you can visit their official website.

Prepaid debit card has been increasing in popularity because it is a practical alternative to using cash payment methods. Unlike a credit card, prepaid debit card is paid in advance, so spending is within your means. You add credits to your debit card by depositing money into it or adding funds to an account which your card can directly deduct money from. In this case, it should be linked to a bank account. These debit cards are generally issued by banks.

The competition for local banks and international credit card companies to provide a market for prepaid debit cards is continuously increasing. It was deemed a strategic move by Visa and Mastercard and they now provide a wide range of debit cards in addition to credit cards. Aside from prepaid debit Mastercard and prepaid Visa Debit cards, most local banks are also now presenting free prepaid debit cards in their list of products. Some attractive promotions flaunts ‘prepaid debit card no monthly fees’ or ‘prepaid debit cards no load fees’

Prepaid debit cards can be used to:

1. Purchase products or pay for a service,
2. Withdraw money using an ATM (Automated Teller Machine)

Because you use the card for cashless shopping, or even withdraw money from ATMs, they are sometimes called prepaid debit cash cards.

The prepaid type of debit card is fit for those who have difficulty in controlling their spending. The advantage of using this pre-loaded debit card is you can only spend the amount or value that your card has in store. These debit cards are reloadable anytime so you may also use these for recurring payments. A research shows that currently, more than 25 percent of transaction volume comes from debit cards and online payment schemes and can soon overtake cash as the primary method of payment.

Once you’ve loaded the card, you can use it as a normal credit card, or debit card. Most stores, restaurants and service providers accept this as a form of payment. In most countries, the debit cards are used freely in all forms of transactions.

Most debit card users are those who usually make payments and transfer money abroad. For personal reasons, an ample number of users transfer money to their friends and loved ones using the prepaid debit card. For companies who have clients based abroad, and with the increasing number of their international workers, this option is best. Prepaid debit card is a good way to avoid huge cutbacks from money transfers and international bank transfers. It also a faster way to send money or make payments instead of delivering cheques and other forms of payment. As an added convenience, it is easily reloadable every time you need to add funds for the card holder.

There are certain rules regarding the use of prepaid debit cards but these vary from one country to another. In some countries, the fees are shouldered by the merchants while in other areas, the charges are incurred solely by the customer each time they perform a debit card transaction.

People who are interested in prepaid debit cards may also find prepaid credit cards attractive.