Uses of Dabit Card are being discussed here.A debit card is that type of facility provided by commercial banks in which an accountholder does not need to keep money (cash) for buying goods from different outlets. The accountholder presents the card to merchant (shopkeeper) at the time of payment of goods purchased.
The merchant passes the card through electronic machine and the purchase price is automatically debited to the account of customer. It means the balance of accountholder is reduced according the price of goods. Later, the merchant receives the price of goods sold from bank. Now, mostly banks are issuing such cards that perform the functions of debit card and ATM card simultaneously.
DEFINITION:
“A plastic card issued by a bank to a depositor, encoded so that it may be used in A. T.Ms or in POS (Point of Sale) systems, like Swapping machines.”
Uses of Dabit Card In Business And Life.
- Easy Payment:
The debit cardholder can make the payment of goods purchased on the spot without using money (c ish).
- No Cash Required:
The user of debit card does not need to keep money (cash) with him. Thus, he gets himself free from the tension of protecting money.
- International Payment:
Debit card is helpful in making payments of goods purchased both locally and internationally.
- Increase in Bank’s Income:
The use of debit card not only increases the transactions through bank but also augments the number of bank’s customers, which results in more income for bank.
- Proof of Payment:
The payment made by debit card for goods purchased is actually a payment through bank, which is recorded in the computer of bank. The customer gets the detail of his transactions (payments) when he receives his bank statement.
Practical Uses of Dabit Card
Debit cards are widely used by people all around the world for a variety of purposes. Here are some of the most common uses of debit cards:
- Cash withdrawals: Debit cards can be used to withdraw cash from ATMs, providing a convenient way to access money without having to visit a bank branch.
- Purchases: Debit cards can be used to make purchases at a variety of merchants, both online and offline. They work similarly to credit cards, but the funds are immediately deducted from your bank account.
- Online shopping: Debit cards are often used for online shopping, as they provide a safe and convenient way to pay for goods and services without having to provide sensitive financial information.
- Bill payments: Debit cards can be used to pay bills, including utility bills, credit card bills, and other recurring expenses.
- International transactions: Some debit cards can be used for international transactions, allowing you to make purchases and withdraw cash when traveling abroad.
- Rewards and discounts: Some debit cards offer rewards programs and discounts on purchases made with the card, providing a way to save money or earn rewards for everyday spending.
Overall, debit cards are a versatile and convenient payment method that can be used for a wide range of financial transactions.
