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Debit cards are also known as check cards.

Debit cards look like credit cards or ATM(automated teller machine) cards, but operatelike cash or a personal check. Debit cards aredifferent from credit cards. While a credit cardis a way to "pay later," a debit card is a way to

"pay now." When you use a debit card, your

INTRODUCTION

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TYPES OF DEBIT CARDS

ONLINE DEBIT CARD

OFFLINE DEBIT CARD

PREPAID DEBIT CARD

ELECTRONIC PURSE

CARD

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ONLINE DEBIT CARD Online debit cards require electronic

authorization of every transaction and thedebits are reflected in the users accountimmediately. The transaction may beadditionally secured with the personal

identification number (PIN) authenticationsystem and some online cards require suchauthentication for every transaction,essentially becoming enhanced automatic tellermachine (ATM) cards. One difficulty in using

online debit cards is the necessity of anelectronic authorization device at the point ofsale (POS) and sometimes also a separate PINpad to enter the PIN, although this is becoming

commonplace for all card transactions in manycountries. Overall the online debit card is

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OFFLINE DEBIT CARD Offline debit cards have the logos of major

credit cards (e.g. Visa or MasterCard) or majordebit cards (e.g. Maestro in the United Kingdomand other countries, but not the United States)and are used at the point of sale like a credit card.This type of debit card may be subject to a dailylimit, and/or a maximum limit equal to thecurrent/checking account balance from which itdraws funds. Transactions conducted with offlinedebit cards require 23 days to be reflected on

users account balances. In some countries andwith some banks and merchant serviceorganizations, a "credit" or offline debittransaction is without cost to the purchaserbeyond the face value of the transaction, while a

small fee may be charged for a "debit" or online

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PREPAID DEBIT CARDS

Prepaid debit cards, also calledreloadable debit cards or reloadableprepaid cards, are often used forrecurring payments. The payer loads

funds to the cardholder's cardaccount. Particularly for US-basedcompanies with a large number of

payment recipients abroad, prepaiddebit cards allow the delivery ofinternational payments without thedelays and fees associated withinternational checks and bank

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ELECTRONIC PURSE CARDSmart-card-based electronic purse

systems (in which value is stored onthe card chip, not in an externallyrecorded account, so that machinesaccepting the card need no networkconnectivity) were tried throughoutEurope from the mid-1990s, mostnotably in Germany (Geldkarte),

Austria (Quick), Belgium (Proton),France (Moneo), the Netherlands(Chipknip and Chipper), Switzerland("Cash"), Norway ("Mondex"), Sweden

("Cash"), Finland ("Avant"), UK" " " "

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ADVANTAG

ES

It is often easier to get than acredit card.

You don't have to get your checkapproved or show identification atstores.

You don't have to carry cash, acheckbook or traveler's checks.

Debit cards are more readily

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Convenience

Use the card for purchases anywhere

that accepts Visa Reliable

Use the card for cash at ATM machines

Have access to your funds 24 hours aday

Avoid check-cashing hassles

Safety Avoid carrying large amounts of cash

Prevent the risk of a paper check being

lost or stolen in the mail

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You need enough money in your bankaccount to cover each purchase.

Since you paid for the purchase atcheckout and the money is out of youraccount, you have less protection if

something goes wrong with thepurchase. Your bank won't put moneyback into your account for items thatare never delivered, don't work or were

misrepresented.

DISADVANTAGES

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A debit card is like a blank check, so you need

to guard the card and the account numbercarefully against loss or misuse. A thief canclear out your bank account before you evenknow your card is missing.

If your debit card is lost or stolen, or if youthink someone is using it fraudulently, callyour bank immediately. Follow the phone callwith a letter.

Thieves don't even need your card. As long asthe have our name and card number the

PROTECTING YOUR DEBIT CARDS

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A debit card is like a blank check, soyou need to guard the card and theaccount number carefully againstloss or misuse. A thief can clear out

your bank account before you evenknow your card is missing.

If your debit card is lost or stolen, or

if you think someone is using it

WHAT IF YOUR DEBIT CARD ISSTOLEN, LOST OR MISUSED

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Accepted at all eligible health caremerchants or IIAS merchants

Eliminates substantiation at IIASMerchants

Saves time theres no waiting forreimbursement

Makes transactions more convenient

Im roves cash flow

BENEFITS OF DEBIT

CARDS

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While some issuers give customersseparate cards for ATM and on-linetransactions and another for off-lineuses, others combine the two on one

card. If your card handles both off-lineand on-line debits and the storeaccepts both, you will choose the

function when you use the card. If you" " '

BEAWARE!

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SEVEN TIPS FOR USING DEBIT

CARDS RESPONSIBLY

If your card is lost or stolen, report the lossimmediately to your financial institution.

If you suspect your card is being fraudulently used,report this immediately to your financial institution.

Take your receipts. Dont leave them for others tosee. Your account number may be all someone needsto order merchandise through the mail or over thephone at your expense, especially if the card can beused without a PIN.

If you have a PIN number, memorize it. Do not keepyour PIN number with your card. Also, dont choose aPIN number that a smart thief could figure out, suchas your phone number or birthday.

Never give your PIN number to anyone. Keep your

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4/22/12 Obtaining a debit card is

W

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1

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Memorize your PIN, and do not write it

on your card.Don't choose a PIN a smart thief couldfigure out, such as numbers

corresponding to your birth date oryour phone number.

Never give your PIN to anyone. Keep itprivate.

Always know how much money youhave in your account, and review bankstatements carefully. Don't forget that

your debit card may allow you to

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PINYou need to

key in your

PIN at the

USING A DEBITCARD AT A

POINT OF SALE

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Know if it is a credit or a debitcard. Ask the card issuer aboutyour options. Understandwhether they are providing youwith just a debit card only forlocal ATM cash withdrawal, or one

which may also be used formaking purchases at localmerchants, or a debit card that

can even be used internationally

BEFORE YOU USE A

DEBIT CARDS

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The banks issuing debit

cards include:Bank of America

Citibank

American Express

Deutsche bank

Capital One

DEBIT CARDS

ISSUERS

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A Brief Introduction to theHistory of Debit Card.

The history of debit card impliesthat the concept of debit card isnot new. History of debit card datesback around 20 years ago whichhighlighted the introduction of e-commerce and alternative means of

payment.

H

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The Magic of

Numbers:History of debit card showsthat back in 1990, the count

of debit cards in circulationwas around 19 million. Historyof debit card also has it, that the

initial years of the debit card erawitnessed steep growth and bythe year 2006 there were as

many as 27 8 million debit cards