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Welcome to Aigbank
Everything You Always Wanted to Know about Debit Cards Over two thirds of all American households now regularly use debit cards, since electronic forms of payment are becoming extremely popular. Debit cards are also commonly known as “check cards” and are accepted almost everywhere. Even most bowling centers, video game arcades, and theme parks are now equipped with debit card systems, making it easier for businesses to determine what products consumers are attracted to, along with calculating other consumer-related information and statistics. A debit card is a method of payment where a plastic card is used to withdraw funds directly from the cardholder’s checking or savings account. Usually a debit card functions as an ATM (automated teller machine) card as well. The consolidation of debit cards and ATM’s began in the early 1980s. What is the difference between a debit card and a credit card? It’s simple. With a debit card the consumer is spending funds that they already have, while with a credit card the bank charges an interest rate to spend their money on credit. I.e. with a credit card you are borrowing money from the bank but with a debit card you are spending your own funds. Debit cards work much like checks except the transaction is completed almost instantly, or at most delayed by a few days. MasterCard and Visa are the primary brands of debit cards issued in the U.S. But in the U.K. there are Silo and Switch, while Laser is the most common in Ireland, and Carte Bleue debit cards are issued in France, etc. In the United States, the Visa company actually refers to its debit card as the “Visa Check Card” while MasterCard calls theirs the “Debit MasterCard.” Those are most of the basic facts about debit cards. Now for some facts that can directly affect the money in your bank account. When paying with a debit card, businesses may ask if you want it paid via “credit” or “debit.” The basic difference here is that with choosing credit the transaction is handled like a ... ... Another fact that may surprise you is that debit or credit transactions can directly affect the amount of funds available in your account. Paying for lodging, car rentals, or gasoline purchases can be subject to ... Surely you know what a PIN number is. A PIN number is a “personal identification number” used with your bank account (saying “PIN number” is actually redundant but it makes things clearer when writing). When using your debit card, you should always protect your PIN number carefully! Hidden cameras or thieves can “shoulder surf” and steal it to gain direct access to your bank account. Some criminals have been known to make fake ATM cards for withdrawals once they have a person’s PIN number. Also beware of service workers walking away with your debit card since “card skimmer” machines are available that can extract all your card’s information in seconds! If you ever notice something fishy occurring with your account – such as large quantities of money disappearing from it! – contact your bank immediately. It may take days or aggravating weeks to get the problems worked out, but you should start the process ASAP. Contacting your bank within two business days is the general rule if your card is ever lost or stolen. After that you could suffer unlimited loss! If a thief ever steals your card and starts draining all the cash from your account, you may not realize it for a period of time and bounce checks for rent and other major bills without being aware of it. |