Major features
Debit cards have several features that make them a popular choice for making payments and withdrawing cash. Here are some common features of debit cards:
- Linked to a Bank Account:Debit cards are linked to a checking or savings account, allowing cardholders to access funds in their account to make purchases and withdraw cash.
- PIN or Signature-based Transactions: Debit cards can be used for transactions using a PIN (Personal Identification Number) or signature-based system, depending on the merchant's preference.
- ATM withdrawals:Debit cards can be used to withdraw cash from ATMs, often with a daily withdrawal limit.
- Online and In-store Purchases: Debit cards can be used to make purchases online and in-store, with many merchants accepting them as a form of payment.
- No Credit Check:Debit cards do not require a credit check since the cardholder is using their own funds to make purchases.
- No Interest Charges: Unlike credit cards, debit cards do not accrue interest charges since purchases are made using the cardholder's own funds.
- Overdraft Protection:Some debit cards offer overdraft protection, which allows cardholders to overdraw their account up to a certain limit, often for a fee.
- Fraud Protection:Debit cards typically offer fraud protection that limits the cardholder's liability for unauthorized transactions.
- Rewards Programs:Some debit cards offer rewards programs, such as cashback or points, for using the card for purchases.
- Contactless Payments: Many debit cards now offer contactless payment options, allowing cardholders to tap their card to pay for purchases instead of swiping or inserting the card.
Overall, debit cards are a convenient and secure way to make purchases and withdraw cash, providing easy access to funds in a linked bank account. It is important to monitor account balances and transaction activity to avoid overdraft fees and detect any fraudulent transactions.