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53-518: As per Article 2(2) of Directive 2009/110/EC, “e-money” means “electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transaction, and which is accepted by a natural or legal person other than the electronic money issuer”. e-money is “technically neutral” (Article 7) and intended to serve as an “electronic surrogate for coins and banknotes” (Article 13). The European Commission describes e-money as

106-447: A credit card , but the money for the purchase must be in the cardholder's bank account at the time of the purchase and is immediately transferred directly from that account to the merchant's account to pay for the purchase. Some debit cards carry a stored value with which a payment is made (prepaid cards), but most relay a message to the cardholder's bank to withdraw funds from the cardholder's designated bank account. In some cases,

159-464: A "digital alternative to cash". The European Central Bank accounts for e-money as "overnight deposits". Because electronic money is technically neutral, it can be issued on different media including prepaid cards and electronic wallets . In 2019, Monerium became the first company authorized to issue e-money on blockchains. According to PayPal , UK, "PayPal enables individuals and businesses to send and receive electronic money online". Revolut , UK,

212-613: A NFC chip to make transactions. The major debit card flags in Brazil are Visa (with Electron cards ), Mastercard (with Maestro cards ), and Elo . The tap to pay technology has been quite popular in Brazil, you won't need to insert your card with a smart chip and put your password, you just need to approximate the card at the credit card machine, it works for debit and credit cards. Some virtual wallets like Samsung Pay , Google Pay and Apple Pay can be used on time of purchase, you just need to approximate your mobile phone or watch at

265-693: A bank account, for maintenance costs. The most common cards in Bulgaria are contactless (and Chip&PIN or Magnetic stripe and PIN) with the brands of Debit Mastercard and Visa Debit (the most common were Maestro and Visa Electron some years ago). All POS terminals and ATMs accept Visa, Visa Electron, Visa Debit, VPay, Mastercard, Debit Mastercard, Maestro and Bcard. Also some POS terminals and ATMs accept Discover, American Express, Diners Club, JCB and UnionPay. Almost all POS terminals in Bulgaria support contactless payments. Credit cards are also common in Bulgaria. Paying with smartphones/smartwatches at POS terminals

318-469: A bank account. Usually, it is free to use debit cards on national and EU ATMs even if they aren't owned by the issuing bank. Since 2019, a few banks charge a 50ct cost when using ATMs who are not owned by the issuing bank. The debit cards in Belgium are branded with the logo of the national Bancontact system and also with an international debit system, Maestro (for the moment there aren't any banks who issue

371-420: A credit card bill or going into debt, the opportunity for anyone over the age of 18 to apply and be accepted without checks on creditworthiness, and the option to deposit paychecks and government benefits directly onto the card for free. A newer advantage is the use of EMV technology and even contactless functionality, which had previously been limited to bank debit cards and credit cards. Prepaid cards vary by

424-448: A credit card since the money will not immediately leave their control. Fraudulent charges on a debit card can also cause problems with a checking account because the money is withdrawn immediately and may thus result in an overdraft or bounced checks . In some cases, debit card-issuing banks will promptly refund any disputed charges until the matter can be settled, and in some jurisdictions, the consumer's liability for unauthorized charges

477-641: A credit card transaction (for example, credit not accessible due to being over one's credit limit ). This is especially true in the United States, where check fraud is a crime in every state but exceeding one's credit limit is not. Debit cards may also be used on the Internet, either with or without using a PIN. Internet transactions may be conducted in either online or offline mode. Shops accepting online-only cards are rare in some countries (such as Sweden), while they are common in other countries (such as

530-682: A credit card was accepted, were first introduced in Canada by Saskatchewan Credit Unions in 1982. In the early 1990s, pilot projects were conducted among Canada's six largest banks to gauge security, accuracy and feasibility of the Interac system. Slowly in the later half of the 1990s, it was estimated that approximately 50% of retailers offered Interac as a source of payment. Retailers, many small transaction retailers like coffee shops, resisted offering IDP to promote faster service. In 2009, 99% of retailers offer IDP as an alternative payment form. In Canada,

583-414: A debit transaction as occurring in real time: the money is withdrawn from their account immediately after the authorization request from the merchant. In many countries, this is correct for online debit purchases. However, when a purchase is made using the "credit" (offline debit) option, the transaction merely places an authorization hold on the customer's account; funds are not actually withdrawn until

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636-1031: A number of different circumstances. The five major debit card networks are UnionPay , American Express , Discover , Mastercard , and Visa . Other card networks are STAR , JCB , Pulse , etc. There are many types of debit cards, each accepted only within a particular country or region; for example, Switch (since merged with Maestro) and Solo in the United Kingdom; Interac in Canada; Carte Bleue in France; EC electronic cash (formerly Eurocheque ) in Germany; Bancomat/PagoBancomat in Italy; UnionPay in China; RuPay in India; and EFTPOS cards in Australia and New Zealand. The need for cross-border compatibility and

689-511: A number of different systems around the world that are often incompatible. Since the mid-2000s, a number of initiatives have allowed debit cards issued in one country to be used in other countries and allowed their use for internet and phone purchases. Debit cards usually also allow an instant withdrawal of cash, acting as an ATM card for this purpose. Merchants may also offer cashback facilities to customers so that they can withdraw cash along with their purchase. There are usually daily limits on

742-408: A phone call or trip to the branch to reactivate with a new PIN, the card being cut up by the merchant, or in the case of an ATM, being kept inside the machine, both of which require a new card to be ordered. Generally credit card transaction costs are borne by the merchant with no fee applied to the end user (although a direct consumer surcharge of 0.5–3% is not uncommon) while EFTPOS transactions cost

795-471: A state driver's license or DMV ID card) in the case of Oakland or in conjunction with a prepaid transit pass (in Chicago). These cards have been heavily criticized for their higher-than-average fees, such as excessive flat fees added onto every purchase made with the card. The U.S. federal government uses prepaid debit cards to make benefit payments to people who do not have bank accounts. In July 2013,

848-494: A temporary virtual card number that works just in 48 hours, according to Itaú , you can use it to buy on unknown websites for safety reasons, because in the case of a data leak, the credit card number that was leaked wouldn't work. In Bulgaria, debit cards are accepted in almost all stores and shops, as well as in most of the hotels and restaurants in the bigger cities. Smaller restaurants or small shops often accept cash only. All Bulgarian banks can provide debit cards when you open

901-629: Is "authorised by the Financial Conduct Authority under the Electronic Money Regulations". And Wise_(company) , UK, is also "authorised by the Financial Conduct Authority under the Electronic Money Regulations". This article about the European Union is a stub . You can help Misplaced Pages by expanding it . Debit card A debit card , also known as a check card or bank card ,

954-426: Is a payment card that can be used in place of cash to make purchases. The card usually consists of the bank's name, a card number, the cardholder's name, and an expiration date, on either the front or the back. Many new cards now have a chip on them, which allows people to use their card by touch (contactless), or by inserting the card and keying in a PIN as with swiping the magnetic stripe. Debit cards are similar to

1007-556: Is also getting common. Canada has a nationwide EFTPOS system, called Interac Direct Payment (IDP). Since being introduced in 1994, IDP has become the most popular payment method in the country. Previously, debit cards have been in use for ABM usage since the late 1970s, with credit unions in Saskatchewan and Alberta introducing the first card-based, networked ATMs beginning in June 1977. Debit cards, which could be used anywhere

1060-664: Is sometimes, but not always, indicated on the receipt), and this has nothing to do with whether the transaction was conducted in online or offline mode, since both credit and debit transactions may be conducted in both modes. In some countries, banks tend to levy a small fee for each debit card transaction. In other countries (for example, New Zealand and the UK) the merchants bear all the costs and customers are not charged. There are many people who routinely use debit cards for all transactions, no matter how small. Some (small) retailers refuse to accept debit cards for small transactions, where paying

1113-569: Is the necessity of an electronic authorization device at the point of sale (POS) and sometimes also a separate PINpad to enter the PIN, although this is becoming commonplace for all card transactions in many countries. 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 only issue online debit cards. Some online debit systems are using

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1166-418: Is the same for both debit and credit cards. In 2010, Bank of America announced that "it was doing away with overdraft fees for debit card purchases." In some countries, such as India and Sweden, consumer protection is the same regardless of the network used. Some banks set minimum and maximum purchase sizes, mostly for online-only cards. However, this has nothing to do with the card networks but rather with

1219-479: Is to prevent fraudulent activities and protect the card holder. If customers want to use card swipe magnet strips aboard and internationally, they will have to activate and enable international card usage. Debit cards and secured credit cards are popular among college students who have not yet established a credit history. Debit cards may also be used by expatriate workers to send money home to their families holding an affiliated debit card. The consumer perceives

1272-703: The Association of Government Accountants released a report on government use of prepaid cards, concluding that such programs offer a number of advantages to governments and those who receive payments on a prepaid card rather than by check. The prepaid card programs benefit payments largely for the cost savings they offer and provide easier access to cash for recipients, as well as increased security. The report also advises that governments should consider replacing any remaining cheque -based payments with prepaid card programs in order to realize substantial savings for taxpayers as well as benefits for payees. In January 2016,

1325-515: The Interac network. STAR (interbank network) STAR is an American interbank network . It is the largest interbank network in United States , with 2 million ATMs , 134 million cardholders and over 5,700 participating financial institutions . The STAR Network began in 1984 and was acquired by First Data Corporation in 2003. The network is owned and operated by STAR Networks,

1378-528: The V-Pay or Visa Electron cards even if they are widely accepted), the Maestro system is used mostly for payments in other countries, but a few national card payment services use the Maestro system. Some banks also offer Visa and MasterCard debit cards but these are mostly online banks. In Brazil debit cards are called cartão de débito (singular) or cartões de débito (plural) and became popular in 2008. In 2013,

1431-492: The payment card number is assigned exclusively for use on the Internet, and there is no physical card. This is referred to as a virtual card . In many countries, the use of debit cards has become so widespread that they have overtaken checks in volume or have entirely replaced them; in some instances, debit cards have also largely replaced cash transactions. The development of debit cards, unlike credit cards and charge cards , has generally been country-specific, resulting in

1484-485: The 100 millionth Brazilian debit card was issued. Debit cards replaced cheques , common until the first decade of the 2000s. Today, the majority of the financial transactions (like buying food at a supermarket), are made using debit cards (and this system is quickly replacing cash payments in Brazil). Nowadays, the majority of debit card payments are processed using a card + PIN combination, and almost every card comes with

1537-574: The Kuwaiti KNET . Bangladesh launched its first domestic card scheme, "Taka Pay" on 1 November 2023. Until now banks were dependent on international card schemes such as Visa , Mastercard , UnionPay etc. From the launching day 3 banks are issuing "Taka Pay" card. Those banks are: Sonali Bank PLC , BRAC Bank PLC and The City Bank Limited . 5 banks ( Dutch Bangla Bank Limited , Estern Bank PLC , Islami Bank Bangladesh PLC , Mutual Trust Bank Limited and United Commercial Bank PLC ) have joined

1590-547: The Netherlands). For a comparison, PayPal offers the customer to use an online-only Maestro card if the customer enters a Dutch address of residence, but not if the same customer enters a Swedish address of residence. Internet purchases can be authenticated by the consumer entering their PIN if the merchant has enabled a secure online PIN pad, in which case the transaction is conducted in debit mode. Otherwise, transactions may be conducted in either credit or debit mode (which

1643-467: The Netherlands. Prepaid debit cards are reloadable and can also be called reloadable debit cards. The primary market for prepaid debit cards has historically been unbanked people; that is, people who do not use banks or credit unions for their financial transactions. Advantages of prepaid debit cards include being safer than carrying cash, worldwide acceptance, not having to worry about paying

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1696-734: The UK government introduced a requirement for banks to offer fee-free basic bank accounts for all, which had a significant impact on the prepaid industry, including the departure of a number of firms. Consumer protections vary depending on the network used. Visa and MasterCard, for instance, prohibit minimum and maximum purchase sizes, surcharges, and arbitrary security procedures on the part of merchants. Merchants are usually charged higher transaction fees for credit transactions since debit network transactions are less likely to be fraudulent. This may lead them to "steer" customers toward debit transactions. Consumers disputing charges may find it easier to do so with

1749-652: The UK, Pinpas cards in the Netherlands, Bancontact cards in Belgium, etc.). The use of a debit card system allows operators to package their products more effectively while monitoring customer spending. Online debit cards require electronic authorization of every transaction, and the debits are reflected in the user's account immediately. The transaction may be additionally secured with the personal identification number (PIN) authentication system; some online cards require such authentication for every transaction, essentially becoming enhanced automatic teller machine (ATM) cards . One difficulty with using online debit cards

1802-481: The ability of banks, who typically provide merchant services to retailers on behalf of Visa or MasterCard, from stopping those retailers charging extra fees to take payment by credit card instead of cash or EFTPOS. In Bahrain debit cards are under Benefit , the interbanking network for Bahrain. Benefit is also accepted in other countries though, mainly GCC, similar to the Saudi Payments Network and

1855-597: The absence of other scheme networks. EFTPOS cards can also be used to deposit and withdraw cash over the counter at Australia Post outlets participating in Giro Post and withdrawals without purchase from certain major retailers, just as if the transaction was conducted at a bank branch, even if the bank branch is closed. Electronic transactions in Australia are generally processed via the Telstra Argent and Optus Transact Plus network—which has recently superseded

1908-552: The advent of the euro recently led to many of these card networks (such as Switzerland's "EC direkt", Austria's "Bankomatkasse", and Switch in the United Kingdom) being re-branded with the internationally recognized Maestro logo, which is part of the Mastercard brand. Some debit cards are dual-branded with the logo of the (former) national card as well as Maestro (for example, EC cards in Germany, Switch and Solo in

1961-526: The amount of cash that can be withdrawn. Most debit cards are plastic , but there are cards made of metal and, rarely, wood.   There are currently three ways that debit card transactions are processed: EFTPOS (also known as online debit or PIN debit ), offline debit (also known as signature debit ), and the Electronic Purse Card System . One physical card can include the functions of all three types, so it can be used in

2014-419: The bank's judgment of the person's age and credit records. Any fees that the customers have to pay to the bank are the same regardless of whether the transaction is conducted as a credit or debit transaction, so there is no advantage for the customers to choose one transaction mode over another. Shops may add surcharges to the price of goods or services in accordance with laws allowing them to do so. Banks consider

2067-806: The black market, and even some building sites are known for cash-in-hand payments in the UK, meaning high amounts of money can be unaccounted for. The banks in Angola issue by official regulation only one brand of debit cards: Multicaixa , which is also the brand name of the one and only network of ATMs and POS terminals. ArCa (Armenian Card), a national system of debit (ArCa Debit and ArCa Classic) and credit (ArCa Gold, ArCa Business, ArCA Platinum, ArCa Affinity and ArCa Co-branded) cards popular in Armenia. Established in 2000 by 17 largest Armenian banks. Debit cards in Australia are called different names depending on

2120-442: The card need no network connectivity) have been in use throughout Europe since the mid-1990s, most notably in Germany ( Geldkarte ), Austria ( Quick Wertkarte ), the Netherlands ( Chipknip ), Belgium ( Proton ), Switzerland (CASH), and France ( Moneo , which is usually carried by a debit card). In Austria and Germany, almost all current bank cards now include electronic purses, whereas the electronic purse has been recently phased out in

2173-493: The consumer an applicable withdrawal fee charged by their bank. The introduction of Visa and MasterCard debit cards along with regulation in the settlement fees charged by the operators of both EFTPOS and credit cards by the Reserve Bank has seen a continuation in the increasing ubiquity of credit card use among Australians and a general decline in the profile of EFTPOS. However, the regulation of settlement fees also removed

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2226-503: The convenience of not having to carry cash, and the availability of automated bank machines (ABMs) and direct payment merchants on the network. Debit cards may be considered 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 and are only usable at the issuer, while debit cards are generally associated with an individual's bank account and can be used anywhere on

2279-479: The credit card machine. Generally the amount you are allowed to pay without a pin is quite low for security, but is really useful for daily things that won't cost too much. Something that appeared recently is a virtual card by some banks (such as Itaú , Bradesco , Mercado Pago and Nubank ) on your internet banking platform. They give you a card number, expiration date and the CVV code to be used online. They also have

2332-547: The debit card is sometimes referred to as a "bank card". It is a client card issued by a bank that provides access to funds and other bank account transactions, such as transferring funds, checking balances, paying bills, etc., as well as point of purchase transactions connected on the Interac network. Since its national launch in 1994, Interac Direct Payment has become so widespread that, as of 2001, more transactions in Canada were completed using debit cards than cash. This popularity may be partially attributable to two main factors:

2385-403: The difference between the two being that EFTPOS transactions are authorized by a personal identification number (PIN) while credit card transactions can additionally be authorized using a contactless payment mechanism (requiring a PIN for purchases over $ 200). If the user fails to enter the correct pin three times, the consequences range from the card being locked out for a minimum 24-hour period,

2438-468: The issuer company: key and niche financial players (sometimes collaborations between businesses); purpose of usage (transit card, beauty gift cards, travel card, health savings card, business, insurance, etc.); and regions. As of 2013, several city governments (including Oakland, California , and Chicago , Illinois ) are now offering prepaid debit cards, either as part of a municipal ID card (for people such as illegal immigrants who are unable to obtain

2491-618: The issuing bank: Commonwealth Bank of Australia : Keycard; Westpac Banking Corporation : Handycard; National Australia Bank : FlexiCard; ANZ Bank : Access card; Bendigo Bank : Easy Money card. A payment in Australia using a debit card can be processed by the local proprietary interbank network called EFTPOS , which is very popular and has been operating there since the 1980s, or it could be processed via an international Card scheme network (ie Visa, Mastercard). Debit cards that were solely EFTPOS-enabled can only be used domestically within Australia and would not be accepted internationally due to

2544-471: The normal authentication processes of Internet banking to provide real-time online debit transactions. Offline debit cards have the logos of major credit cards (for example, Visa or Mastercard ). These cards connect straight to a person's bank account, but there is a delay before the money is taken out. Smart-card -based electronic purse systems (in which value is stored on the card chip, not in an externally recorded account, so that machines accepting

2597-556: The old Transcend network in the last few years. Most early keycards were only usable for EFTPOS and at ATM or bank branches, whilst the new debit card system works in the same way as a credit card, except it will only use funds in the specified bank account. This means that, among other advantages, the new system is suitable for electronic purchases without a delay of two to four days for bank-to-bank money transfers. Australia operates both electronic credit card transaction authorization and traditional EFTPOS debit card authorization systems,

2650-535: The purchases to have been made at the moment when the card was swiped, regardless of when the purchase settlement was made. Regardless of which transaction type was used, the purchase may result in an overdraft because the money is considered to have left the account at the moment of the card swipe. According to Singapore's local financial and banking laws and regulations, all Singapore-issued credit and debit cards with Visa or MasterCard swipe magnet strips are disabled by default if used outside of Singapore. The whole idea

2703-460: The scheme and will start issuing cards soon. Bangladesh Bank is working to bring all Bank , Mobile financial service provider and other financial institutions into the scheme. In Belgium, debit cards are widely accepted in most businesses, as well as in most hotels and restaurants. Smaller restaurants or small retailers often accept either debit cards or Payconiq , but generally not credit cards . All Belgian banks provide debit cards when you open

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2756-487: The transaction fee would absorb the profit margin on the sale, making the transaction uneconomic for the retailer. Some businesses do not accept card payments at all, even in an era with declining use of cash. This still happens for a variety of reasons, tax evasion by small business included. In 2019, £35,000 million in tax revenue was lost in the United Kingdom due to cash-only payments. Many businesses such as, barber shops, fish & chip shops, Chinese takeaways,

2809-509: The transaction is reconciled and hard-posted to the customer's account, usually a few days later. This is in contrast to a typical credit card transaction, in which, after a few days delay before the transaction is posted to the account, there is a further period of maybe a month before the consumer makes repayment. Because of this, in the case of an error by the merchant or issuer, a debit transaction may cause more serious problems (for example, overdraft/money not accessible/overdrawn account) than

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