Of course, debit cards and credit cards are available from all banks across the globe.
What do you mean by debit card and credit card?
Debit cards are equivalent to checks and these cards are used for several purposes namely; withdrawal of cash, payment towards various utility bills, and for many other applications. However, subject to the availability of the amount available in the account, the debit cards can be used and for excess usage of more than the amount available in the account, certain banks allow credits to some extent, and these facilities are not provided by some bankers. Credit cards are loan cards and credit card holders can use the cards like debit cards; however, up to the credit limit permitted to the card holders.
What are the uses of debit cards?
The debit card is a simple plastic card issued to individuals and others who are having either a current or savings account with the bankers. Debit card holders can utilize the money available in their accounts using debit cards without entering any bank branch. Cash can be withdrawn from automated teller machines of the bank and other banks which are covered under the shared payment network system.
The front portion of the debit card consists of the following details namely; the name, the validity period of the card, and the card number. On the back side of the card, a magnetic strip is available wherein the details of the account holder including the pin number lodged by the cardholder are available. Once the card is inserted into the card reader, the card reader recognizes the true identity of the card with the pin number indicated by the cardholder at the time of availing of the services through automated teller machines.
Through automated teller machines, the cardholder is able to get the following services namely; cash withdrawal, change of pin number, transfer of funds from one account to another account, payment towards various purchases through point of sale, e-ticketing, and many more.
What do you mean by validation service?
Through direct debits, the clients can authorize the agencies to transfer money from their accounts with the bankers to the account of the agency. The money so withdrawn is utilized towards payment of various utility bills namely; telephone bills, electricity charges, water and sewerage charges, and many more according to the instructions issued to the agency by the clients and for effecting these transactions certain commission is levied by the agencies. On account of the services available from the Direct Debit validation service, the clients need not shoulder much responsibility in regard to various payments.
What is a shared payment network system?
The shared payment network system is a facility by which the ATMs are shared by member banks and other establishments. When the client’s banker is a member of the shared payment network system of the Direct Debit Validation service, the authorization can be issued through automated teller machines and such authorization once validated by the banker becomes effective and binding. Basing upon the authorization available the agencies transfer the funds from the account of the account holder to their account towards making various payments as per the instructions of the account holder.