INTRODUCTI ON

Debit cards are also known as check cards. Debit cards look like credit cards or ATM (automated teller machine) cards, but operate like cash or a personal check. Debit cards are different from credit cards. While a credit card is a way to "pay later," a debit card is a way to "pay now." When you use a debit card, your 4/22/12

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 the debits are reflected in the users account immediately. The transaction may be additionally secured with the personal identification number (PIN) authentication system and some online cards require such authentication for every transaction, essentially becoming enhanced automatic teller machine (ATM) cards. One difficulty in using online debit cards is the necessity of an electronic authorization device at the point of sale (POS) and sometimes also a separate PIN pad to enter the PIN, although this is becoming commonplace for all card transactions in many 4/22/12 countries. Overall, the online debit card is

OFFLINE DEBIT CARD

Offline debit cards have the logos of major credit cards (e.g. Visa or MasterCard) or major debit cards (e.g. Maestro in the United Kingdom and 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 daily limit, and/or a maximum limit equal to the current/checking account balance from which it draws funds. Transactions conducted with offline debit cards require 23 days to be reflected on users account balances. In some countries and with some banks and merchant service organizations, a "credit" or offline debit transaction is without cost to the purchaser beyond the face value of the transaction, while a 4/22/12 small fee may be charged for a "debit" or online

PREPAID DEBIT CARDS

Prepaid debit cards, also called reloadable debit cards or reloadable prepaid cards, are often used for recurring payments. The payer loads funds to the cardholder's card account. Particularly for US-based companies with a large number of payment recipients abroad, prepaid debit cards allow the delivery of international payments without the delays and fees associated with 4/22/12 international checks and bank

ELECTRONIC PURSE CARD

Smart-card-based electronic purse systems (in which value is stored on the card chip, not in an externally recorded account, so that machines accepting the card need no network connectivity) were tried throughout Europe from the mid-1990s, most notably in Germany (Geldkarte), Austria (Quick), Belgium (Proton), France (Moneo), the Netherlands (Chipknip and Chipper), Switzerland ("Cash"), Norway ("Mondex"), Sweden ("Cash"), Finland ("Avant"), UK 4/22/12

ADVANTAG ES

It is often easier to get than a credit card. You don't have to get your check approved or show identification at stores. You don't have to carry cash, a checkbook 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 a day Avoid check-cashing hassles

Safety

Avoid carrying large amounts of cash Prevent the risk of a paper check being 4/22/12 lost or stolen in the mail

DISADVANTAGES

You need enough money in your bank account to cover each purchase. Since you paid for the purchase at checkout and the money is out of your account, you have less protection if something goes wrong with the purchase. Your bank won't put money back into your account for items that are never delivered, don't work or were misrepresented. 4/22/12

PROTECTING YOUR DEBIT CARDS

A debit card is like a blank check, so you need to guard the card and the account number carefully against loss or misuse. A thief can clear out your bank account before you even know your card is missing. If your debit card is lost or stolen, or if you think someone is using it fraudulently, call your bank immediately. Follow the phone call with a letter. Thieves 4/22/12 don't even need your card. As long as they have your name and card number, they

WHAT IF YOUR DEBIT CARD IS STOLEN, LOST OR MISUSED

A debit card is like a blank check, so you need to guard the card and the account number carefully against loss or misuse. A thief can clear out your bank account before you even know your card is missing. If your debit card is lost or stolen, or if you think someone is using it 4/22/12

BENEFITS OF DEBIT CARDS

Accepted at all eligible health care merchants or IIAS merchants Eliminates substantiation at IIAS Merchants Saves time theres no waiting for reimbursement Makes transactions more convenient Improves cash flow
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BE AWARE!

While some issuers give customers separate cards for ATM and on-line transactions and another for off-line uses, others combine the two on one card. If your card handles both off-line and on-line debits and the store accepts both, you will choose the function when you use the card. If you 4/22/12

SEVEN TIPS FOR USING DEBIT CARDS RESPONSIBLY

If your card is lost or stolen, report the loss immediately 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 to see. Your account number may be all someone needs to order merchandise through the mail or over the phone at your expense, especially if the card can be used without a PIN. If you have a PIN number, memorize it. Do not keep your PIN number with your card. Also, dont choose a PIN number that a smart thief could figure out, such as your phone number or birthday.
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give your PIN number to anyone. Keep your

WH

Obtaining a debit card is 4/22/12

12

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Memorize your PIN, and do not write it on your card. Don't choose a PIN a smart thief could figure out, such as numbers corresponding to your birth date or your phone number. Never give your PIN to anyone. Keep it private. Always know how much money you have in your account, and review bank statements carefully. Don't forget that 4/22/12 your debit card may allow you to

PIN

USING A DEBIT CARD AT A POINT OF SALE

You need to key in your PIN at the

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BEFORE YOU USE A DEBIT CARDS

Know if it is a credit or a debit card. Ask the card issuer about your options. Understand whether they are providing you with just a debit card only for local ATM cash withdrawal, or one which may also be used for making purchases at local merchants, or a debit card that 4/22/12 can even be used internationally

DEBIT CARDS ISSUERS

The banks issuing debit cards include:

Bank of America Citibank American Express Deutsche bank
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Capital One

HI

A Brief Introduction to the History of Debit Card.

The history of debit card implies that the concept of debit card is not new. History of debit card dates back around 20 years ago which highlighted the introduction of ecommerce and alternative means of 4/22/12 payment.

The Magic of Numbers:

History of debit card shows that back in 1990, the count of debit cards in circulation was around 19 million. History of debit card also has it, that the initial years of the debit card era witnessed steep growth and by the year 2006 there were as many as 27.8 million debit cards.

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