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This finance and money guide will give you several points of information about debit cards that will help to guide you if you are looking at getting a debit card for yourself.
  What is a debit card?
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A debit card is a card which physically resembles a credit card, and, like a credit card, is used as an alternative to cash when making purchases. However, when purchases are made with a debit card, the funds are withdrawn directly from the purchaser's current cheque or savings account at a bank or credit union.
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Who would use a debit card? |
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Debit cards and secured credit cards are popular among uni students who have not yet established a credit history. There are also forms of debit cards (e.g. Visa Buxx) that are purchased by parents for teenagers as young as 13. The parent retains a great deal of control over the child's use of the cards.
Debit cards are also similar to stored-value cards in that they represent a finite amount of money owed by the card issuer to the holder. They are different in that stored-value cards are generally anonymous, while debit cards are generally associated with an individual's bank account.
Debit cards usually offer some protection against loss, theft, or unauthorised use while stored-value cards usually do not. |
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What type of debit card are there? |
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Although many debit cards are of the Visa or MasterCard brand, there are many other types of debit card, each accepted only within a particular country or region, for example Switch (now: Maestro) and Solo in the United Kingdom, Carte Bleue in France, Laser in Ireland. In Australia you will usually find Visa debitcards and Mastercard debitcards. |
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What is an online debit card and an offline debit card? |
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Overall, the online debit card is generally viewed as superior to the offline debit card because of its more secure authentication system and live status, which alleviates problems with processing lag on transactions that may have been forgotten or not authorised by the owner of the card. (Banks in some countries, such as Canada, only issue online debit cards.)
Offline debit cards have the logos of major credit cards (e.g. Visa or MasterCard) or major debit cards (e.g. Maestro) and are used at point of sale like a credit card. This type of debit card may be subject to a daily limit, as well as a maximum limit equal to the amount currently deposited in the current / checking account from which it draws funds. Offline debit cards in some countries are not compatible with the PIN system, in which case they can be used with a forged signature, since users are rarely required to present identification.
Transactions conducted with offline debit cards usually require 2-3 days to be reflected on users’ account balances. This type of debit card is similar to a secured credit card.
Many debit cards are actually capable of accomplishing both types of transactions, depending on the availability of proper equipment at the POS. |
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Where can you get a Visa debit card? |
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Visa is a brand of credit card and debit card operated by the Visa International Service Association of San Francisco, California, USA, an economic joint venture of 21,000 financial institutions that issue and market Visa products. The Visa card was launched in 1976 and the card was derived from the earlier BankAmericard issued by the Bank of America.
VISA credit cards and VISA debit cards are now available in most countries of the world, including all states and territories of Australia.
Carefully look into the documentation (contract) for your debit card before aquiring one, or have someone whom you trust or is qualified to give financial advice to look into the debit card contract. It may also be an advantage to talk with someone who already has a debit card before committing to one and gather their opinion as someone who is already operating one.
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