Debit cards are issued by the banks to its customers. The card allows instant purchase and withdrawal of money from account using ATM’s. Debit cards are different from credit cards in the way they allow purchase based on funds available in the account unlike credit cards which uses a line of credit that can be repaid later.
Debit cards require a personal identification number (PIN) as a security feature. When withdrawing cash from an ATM or during purchasing, the user will have to enter their PIN for verification. In online purchases, instead of the PIN, users need to enter the three or four digit security code listed on the back of the card. Additional safety measures common for debit cards include a photograph of the card’s owner on the front, or an electronically reproduced customer signature imprinted on the card. Banks offer debit cards for all types of accounts except for the ones opened for the sake of loans such as housing loans, car loans, and personal loans etc.
The biggest advantage of debit card is that a consumer who is not credit worthy and may find it difficult or impossible to obtain a credit card can more easily obtain a debit card, allowing him/her to make plastic transactions rather than carrying cash in hand while travelling or while on shopping