What is a debit card and how does it work?
– Withdraw cash from ATMs– Make payments for various transactions – Make payments for a wide variety of transactions– Provide unsecured credit– May be used for cash withdrawals, but costly Spending limit – Based on bank account balance– Spending or withdrawals are immediately debited – Based on limit granted to cardholder– Transactions charged are first made against credit limit, to be repaid to the bank later– Transaction limits may exceed bank balance, but not credit limit on card Typical fees – Card replacement fees – Annual fee– Interest on balance carried over...
Source: asiaone.com
