Sunday, January 11, 2009

What is Debit Card?

Debit cards work like plastic cheques. When its owner makes a purchase with it, the payment for the purchase is taken directly from his bank account. If the owner's account has insufficient funds to cover the expense, his card payment will be declined.

Debit cards come in two varieties, online and offline. Online cards function like ATM cards, requiring its owner to enter a personal identification number (PIN) to initiate the immediate transfer of funds from his bank account to the merchant's bank account. In some countries, such as Canada, online debit cards are the only variety of debit cards that are accepted.

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