MULTANI MAL MODI COLLEGE

DEPARTMENT OF BUSINESS MANAGEMENT

WORKSHOP ASSIGNMENT

SUBMITTED TO :- BBA-1 SUBMITTED BY:-

SUKHSEHAJ SIR ROLL NO. 5838 GAGANDEEP SINGH
 DEBIT CARD
KEY POINTS :-
• What is Debit Card?
• Short history of Debit Card
• Structure of a Debit Card
• Types of debit card systems
• How do debit cards work?
• Benefits or advantages of Debit Card
• Disadvantages of Debit Card
What is Debit Card ?
 A Debit Card (also known as a Bank Card, Plastic Card or Check Card)
is a plastic payment card that can be used instead of cash when making
purchases.

 It is similar to a credit card but unlike a credit card, the money comes
directly from the user's bank account when performing a transaction.

 It can be called an electronic check, as the funds are withdrawn

directly from either the bank account, or from the remaining balance
on the card.
Short history of Debit card
The first debit card may have hit the market as early as 1966
The Bank of Delaware (USA) first piloted the card
It started to be popular In '90s when more and more ATMs are
started
In 1990, debit cards were used in about 300 million
transactions.
In 2009, prepaid and debit cards were used in 37.6 billion
transactions.
Structure of a Debit Card
Front View
1. Issuing Bank logo
2. EMV chip
3. Hologram
4.Card number (PAN)
5. Card brand logo
6.Expiration date
7.Cardholder's name
Back View
1.Magnetic stripe
2.Signature strip panel
3.Card Security Code
How do Debit Cards work ?
 When you open a checking account at a bank
or credit union, you usually get a debit card.
 A debit card lets you spend money from your
checking account without writing a check.
 You can use your debit card to buy things in a
store
 You can use it at an ATM to get cash
 When you pay with a debit card, the money
comes out of your checking account
immediately.
 There is no bill to pay later.
Types of debit card systems
There are three ways of debit card transactions
1. Online debit or PIN debit
2. Offline debit (also known as signature debit)
3. Electronic Purse Card System
ONLINE DEBIT SYSTEM
 Online debit cards require electronic
authorization of every transaction and the
debits are reflected in the user’s account
immediately.
 The transaction may be additionally
secured with the personal identification
number (PIN) system.
 some online cards require such
authentication for every transaction,
essentially becoming enhanced automatic
teller machine (ATM) cards.
 OFFLINE DEBIT SYSTEM
 Offline debit cards have the logos of
major credit cards (Visa or MasterCard)
or major debit cards (Maestro) and are
used at the point of sale like a credit card
(with payer's signature).
 This type of debit card may be subject to
a daily limit or a maximum limit equal to
the current account balance from which it
draws funds.
 Transactions conducted with offline debit
cards require 2-3 days to be reflected on
users' account balances.
Electronic purse card system
 Electronic purse (Purse) An electronic purse
is the store of value on a card, which can be
used in a manner similar to cash to pay for
travel or for other small-scale transactions.
 The electronic "purse" is secure information
stored in a dedicated area or file in the
smart-card.
 Electronic purse systems are in use
throughout Europe since the mid-1990s.
 In Austria and Germany, almost all current
bank cards now include electronic purses,
whereas the electronic purse has been
recently phased out in the Netherlands.
 Advantages of Debit Card
• Able to reduce the risk of getting in to credit card debt, by ensuring you’re
spending your own money, and not over-extending yourself by getting credit card
balance you may not be able to repay.
• Any purchase that you make on your card is covered and protected by VISA's
Zero Liability policy .
• It's a lot more convenient, easier and safer than carrying cash or using your
EFTPOS card.
• Access your transaction records for your card online instantly through internet
banking.
• You don't need a good credit history. When applying for a VISA Debit Card, the
banks don't do a credit check, making the application process fast (and painless!)
Disadvantages of Debit Card
• If the card provider offers an insecure website for letting you check the
card's balance, this could give an attacker access to the card information.
• If you lose the card, and have not somehow registered it, you likely lose
the money.
• If a provider has technical issues, the money might not be accessible when
you need it.
• Some companies' payment systems do not appear to accept prepaid debit
cards.
• And there is a risk that prolific use of prepaid debit cards could lead data
provider companies to miscategorize you in unfortunate ways.
THANK YOU…