The debit card is a type of plastic issued by a financial institution with a magnetic stripe on the back and an electronic chip that stores information about the access data, name and account number of the owner. It is used to be able to carry out different financial operations and is linked to a password or PIN that allows these transactions to be authorized. The debit card is a good alternative to control expenses and meet the monthly family budget, two essential aspects to take care of financial health.
Debit cards are the most common modality among the types of cards. Its operation is simple: it is associated with a bank account and with it you can pay in stores or withdraw cash at ATMs, instantly deducting the amount of the operation from the available balance in the associated account. If there was not enough money in that account, the operation could not be carried out.
According to data from Statista, the number of VISA debit cards in circulation has grown steadily, both in the United States and around the world, between the first quarter of 2016 and the second quarter of 2021. In the second quarter of 2021, there were some 742 million VISA debit cards in circulation in the United States and more than 1.8 billion cards worldwide
Its main uses
It can be said that the debit card is the beginning of the replacement of cash, since it allows payments of different services, both public and private; make purchases in different stores in the country or abroad, and it is also used to access cash through withdrawals at ATMs. In addition, it allows contactless payments and allows greater control of expenses since each one can be reviewed with its date of operation and place where the purchase was made through the account statement. At BBVA, both income and expenses are classified by categories, so that spending limits can be set and monitored. In addition, the bank anticipates information about upcoming movements, so that they are prepared. All this from the bank’s ‘app’.
Difference between credit and debit card
The credit card allows payments to be made without the need to have funds in the account, since the bank makes an amount of money available to its holder on credit. However, with the debit card, purchases are charged directly and instantly to the account, so it is essential to have a sufficient balance.
In addition, credit cards allow financing, or what is the same, they offer the possibility of paying in installments and making purchases without having to pay the total amount at the time. Therefore, they implicitly carry the granting of a loan by the bank. On the other hand, debit cards are a means of payment in themselves. As we have said, the amount is charged directly to the holder’s account, deducting it directly from their balance.
Importance of Debit card
Many of us have prepaid debit cards in our wallets. It’s not really a replacement for cash, but it works well as a form of payment. A prepaid debit card can be a good tool to carry around as you can use it as a form of payment at many different locations. Additionally, they can also be used to pay for items when they cost more than a dollar.
A debit card is a financial instrument used in most countries. It is issued by a bank or other financial institution to a customer in the user’s name. The customer authorizes the use of the card by placing a spending limit on it, usually of $30 to $100 per day or week, depending on the country and the time of year. The bank then collects the funds from the card in the form of a recurring check or an electronic “transaction”. When the customer uses the card, the bank receives a commission for each transaction. The rate of commission depends on
To collect any information, one needs a method or convenience to make data collection easy and useful, which is the reason why debit card is a necessity for anyone. It is not the only choice, without the introduction of debit card will be quite difficult to generate money. Before you use a credit card to purchase something, it’s important to know your unique information will be safe.