Cash Debit Cards

Why Use Cash Debit Cards?

Cash debit cards are a convenient and affordable mode of payment. In the past, most banks offered the option of an ATM (Automatic Teller Machine) card, and a separate debit card. But nowadays, more and more institutions are choosing to combine the two.

This card is then dual-purpose since it can be used in two ways- to withdraw money at ATM machines, and also to pay for purchases at POS (Point Of Sale) terminals. These are the swipe-card machines which were previously used for making payments by credit cards.

But cash debit cards have a definite advantage over credit cards, in that they allow the customer not to go over his money limit. A debit card when used, allows the payment to ‘tally’ up to the amount of money the customer has on his bank account, and then the payment sum is “debited” from the account, instantaneously. The customer cannot go over his actual bank balance. Credit cards on the other hand, allow the customer a preset amount of credit, which merely represents money he does not have but which is “provided’ by the financial institution. Furthermore, since transactions are immediately carried out using cash debit cards, there is no shadow of interest repayment looming over the customer, as with credit card late repayments.

Cash debit cards are also called checking cards. Their purpose is the same as a check, and the holder carries no money with him. The cards however eliminate the need for personal information and identification. Furthermore, debit cards are a safer option, in that personal information may not be gleaned from it. The card does use a secure PIN number, which allows the customer to access his account from an ATM. The PIN number should be kept confidential at all times, and if needs be to write it down, it must not be kept close to, or actually written on, the debit card itself.

Cash debit cards’ payments usually operate in two ways, namely on-line, and off-line. On-line payments allow for immediate debit of funds from any POS, as it asks the customer for his PIN code and thus links directly to his account. Off-line payments however require the customer to sign the receipt for the transaction, and the money may be debited in the following 1-3 days.