What is debit card: All you need to know about debit card in Nigeria
The essence of this article is to acquaint you with basic knowledge of debit card as widely used in Nigeria for the purpose of financial transactions, knowing more about debit card makes it fun and easier to use.
WHAT IS DEBIT CARD?
A debit card is a plastic card issued by the bank to its customer, linked to the customer’s account for online shopping and payment of goods and services across channels. As well used on ATM, POS etc for cash withdrawal and transfers.
From the above definition, debit card must be linked to your account otherwise it cannot effect transactions.
Example: Say bank customer Mr Donald Ejiofor wants pay for a Laptop purchased from an online store say Amazon, Ali Express, click bank. While staying at the comfort of his house in Nigeria, he can only pay using a debit card, usually master or visa card.
WHAT IS DEBIT CARD: FEATURES OF DEBIT CARD
- Very light and portable to carry.
- Has an arrow head, the head indicates area which should be inserted into the ATM machine during transaction, as well POS etc.
- Has a card number, debit card has a 16 digits card number otherwise called the pan number. These numbers are usually entered during transactions at online stores.
- The card holder has his/her name written on it as a unique identifying feature.
- Expiry date of the card is indicated on the surface.
- EMV chips, the chip contains your bank details which helps automate your offline transactions.
- Magnetic chip.
- Payment processor logo embedded
- CVV, these are 3 digit numbers written behind the debit card, it’s a security code that must be kept secret. It’s called Card Verification Value.
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WHAT IS DEBIT CARD: ADVANTAGES OF DEBIT CARD
- Immediate withdrawal of cash.
- Can act like a cheque when buying items.
- Easy and convenience to carry in place of cash.
- Readily and generally acceptable for settlement of goods and services.
WHAT IS DEBIT CARD: DISADVANTAGES OF DEBIT CARD
- There’s no grace period, once your account is exhausted you cannot use it for transactions except the account is funded.
- Less protection, financial institutions try to protect their customers from card fraud, some will however expose themselves ignorantly.
- Fees apply, it usage could attract a fee when used on ATM not affiliated to your bank.
WHAT IS DEBIT CARD: TYPES OF DEBIT CARD
There are conventionally three types of debit card in Nigeria as follows:
- Verve card: This is a debit card issued by the bank to its customers, to allow them make withdrawals at the ATM. It has limited use, normally within the confine of the ATM and the issuing country.
- VISA Card: This is as well a plastic card the bank issued its customers, usually linked to the customer’s account. It’s used to pay for goods and services online, online shopping, ATM withdrawal, transfers etc.
- Master Card: This is similar to visa card in application and features. Usually for online shopping and related transactions.
WHAT IS DEBIT CARD: DEBIT CARD VS ATM CARD
Debit cards differ from ATM cards with respect to functions, limitations and transactions they can accomplish.
A debit card is issued by the bank to allow customers carry out online transactions, shopping, to as well pay for goods and services across online and internet channels. You can buy goods and services outside Nigeria with this card. Can also effect cash withdrawals, transfers, bill payment at the ATM. https://naijatechguide.com
ATM Card, starts and ends its transactions at the ATM point, which involves cash withdrawals. It cannot carry out online or internet transactions except if reconfigured which is not usually advisable.
A debit card can however perform the function of an ATM card in terms of cash withdrawal, while an ATM card cannot perform the function of a debit card as highlighted above.
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Raphael is a seasoned and dynamic writer, with interest in Banking, personal finance, entrepreneurial development. A councillor and motivational speaker.