• Debit Card

    Debit card allows the holder to transfer money electronically from his or her bank account to make the purchase. Debit cards have made the lives of a common man easy. No one has to go to the banks to withdraw money anymore. Payments for purchases are done in an instant.

    What is a Debit Card?

    A debit card is also known as a bank card that is plastic payment which can be used instead of cash to pay for purchases. It works just like a credit card, except it is not debt, the amount is paid from the user’s bank account. Debit cards have overtaken and replaced cheques and cash transactions.

    Why Choose a Debit Card?

    Debit card uses the funds from your account that it is tied with to make the payments. Though having a credit card has its own perks, it is better to have a debit card. Following are the various reasons one must choose a debit card:

    • Most of the debit card have a daily spending and cash withdrawal limit that helps you save. These limits also protects your funds in the event the card is stolen. You must also remember that your transaction will be declined if there is insufficient fund in your account.
    • It helps you to track your expenses. You will have a record of the payments you have made and you will know how much you have spent and how much money you have left in your account. You can plan your finances and budget them in a better way when you look at your bank statement.
    • You will avoid the unnecessary charges. If you have a credit card and you are unable to make the payments on time, you will be charged a late payment fee and you will be charged an interest for the amount utilised. You can avoid all of those things if you have a debit card.
    • It is convenient and lets you make payments for purchases in no time. You will not have to worry about the bill that comes at the end of the month which needs to be taken care of.
    • You need not carry cash around. Almost all merchants accept debit cards. It reduces the need for you to have to roam around with a huge wad of cash.
    • Debit cards offers security features. You will get automatic alerts when you withdraw cash or pay at a store, etc. The message will be sent to your registered mobile number.
    • The cash in your debit cards are safe as you will need to use a PIN number to complete the transaction. If the wrong number has been used, the transaction is declined. In the event your card is stolen, it is of no use as the thief cannot access your funds without having the PIN number. In the meantime, you can call the customer care and have the card blocked.
    • Most debit cards are linked to your savings accounts or checking accounts that offer you interest on the balance available in the account. When you have to pay interest for the purchases made with your credit card, you will be earning interest on your debit card balance.
    • Most debit cards do not charge any fee unless you have the overdraft facility and you are overshooting your limit.

    Debit cards are the best option for the compulsive spenders as there is a limit on the cash withdrawal and daily limit. It helps a person to avoid the temptation of credit. Debit cards will help a person to become a disciplined spender and teach them to stay within their means.

    Types of Debit Card in Philippines

    There are mainly two types of debit cards offered in the Philippines, they are:

    • Visa Debit Card:
    • Visa debit cards are issued by Visa in most countries. Most of the banks and financial institutions issue Visa debit card to their customers to allow them to access the funds from their accounts.

    • MasterCard Debit Card:
    • MasterCard debit card uses the same systems as the MasterCard credit card, but it does not use the line of credit and instead relies on the funds in the customer’s bank account. Debit MasterCards are offered by Metrobank, BDO, PNB, Security Banks, etc. The transactions are performed using the bank account son the MasterCard SecureCode platform.

    Benefits of Debit Card

    Following are the various benefits of having a debit card:

    • Debit card functions like an ATM card and you can make immediate cash withdrawals.
    • It also works as a cheque when you want to buy an item. The amount used to pay for the transaction is deducted from the account.
    • Debit cards are easy to obtain as most financial institutions will issue a card when you request for it.
    • It is convenient as the purchases can be made by swiping the card instead of filling out the paper cheque.
    • It is safe as you will not be walking around with a huge amount of cash. Also your debit card has a PIN number that makes it difficult for anyone else to access your account.
    • Debit cards are widely accepted and you will not have any interruption in the service.
    • The expenses can be easily tracked and will help you spend within your means.
    • Most cards do not charge an annual fee.
    • You can immediately transfer funds.
    • It is easy to carry and manage.

    Top Banks Offering Debit Card in Philippines

    Following are the top banks that offer debit cards in the Philippines:

    • BDO Debit Card: BDO debit cards come with an embedded chip and offers improved security. The card can be used to withdraw cash and pay bills with ease. Contactless payment is allowed for purchases below P2,000. You can earn 1 point for every P1,000 spend online or in-store.
    • BPI Debit Card: BPI offers debit cards with BPI’s deposit accounts. You can use the card to make cashless payments through the Express Payment System. It is easy to use as you will have to swipe the card and input the PIN. There are no additional fees charged. You can avail discounts, freebies, and rebates when you use the card to pay via Express Payment System.
    • Metrobank Debit Card: Metrobank debit cards can be used for shopping and dining. You can also use the card to pay for online purchases. The card is accepted at over 34 million MasterCard accredited merchant outlets. It is safer to carry a Metrobank debit card as it uses EMV chip and it provides an added layer of protection.
    • Security Bank Debit Card: The debit cards are accepted at all MasterCard affiliated outlets. The card can be used to pay for purchases and to pay for your bills. You can avail various discounts and offers with your debit card.
    • Landbank Debit Card: The debit card issued by Landbank can be used to pay for bills, make purchases over the phone, and to shop online. The card is accepted at over 1.9 million ATMs worldwide. There is no annual fee charged. You will be using your own money that is linked to your deposit account. You can swipe for local and international transactions.
    • UnionBank Debit Card: UnionBank offers personal and corporate debit cards. The personal debit cards offered are internet based deposit account, BusinessLine account, and GoGet debit card that lets you earn points. The corporate accounts available are to improve payroll and e-wallet. The UnionBank debit cards can be used with PayPal as well.
    • Eastwest Bank Debit Card: EastWest offers Visa debit cards that allows you to enjoy cashless dining, shopping, and online purchases. The card is embedded with EMV chip and offers additional layer of security. The card is accepted at over 30 million Visa affiliated establishments. Recurring payments can be made and you can also pay your bills.
    • Maybank Debit Card: Maybank offers ATM cards that gives you access to your Maybank account. You can also use the card to shop at any Bancnet accredited merchant outlet. You can pay your bills. There is no annual fee charged.  
    • HSBC Debit Card: You can perform cashless transactions with your HSBC debit cards. Since it has an EMV chip embedded in it, you will get additional security. You can access the funds from any part of the world. You get text alerts on your registered mobile number and it will help you monitor your transactions. There is no annual fee charged. You get 3% rebate on fuel transactions when you fuel up at the participating Caltex Stations.
    • Sterling Bank of Asia Debit Card: Sterling Bank of Asia debit cards let you enjoy the convenience of paying for shopping, dining, and paying bills. You need not carry a large amount of cash. It is accepted at over 70,000 Visa merchant outlets in the Philippines and at over 29 million Visa merchant outlets worldwide. It is a prudent way to pay as you will have full control over your spending. You are using your own money that is in your current or savings account.
    • PBCOM Debit Card: EMV chip is embedded in the card to prevent fraud, data theft, and card cloning. The card can be used abroad in establishments that display MasterCard or BancNet logo. You can use the debit card to withdraw cash or pay your bills. You can use it to pay for purchases in restaurants, department stores, supermarkets, etc. The card can also be used to pay for purchases online. You can also pay for your airfare, shopping, dining expenses, and accommodation. Special discount and offers are available when you use your PBCOM debit card.
    • PNB Debit Card: PNB debit card is a PIN based ATM card. It can be used around the world in establishments that accept MasterCard and Maestro. It can be used at over 32 million outlets. It is an international ATM card. The card can be used to check your balance at an ATM, to withdraw cash at an ATM, make deposits at an ATM, transfer funds, pay bills online, and to purchase goods and services. There are limitation on cash withdrawals but there are no limitations for POS usage.

    How Does a Debit Card Work?

    Debit cards are linked to your savings or current account. When you use the debit card to pay for a purchase or to withdraw cash, the amount is deducted from your account in real-time. The debit cards are most commonly used to pay for shopping, grocery, online purchases, fuel, travel, and pharmacy.

    Though it seems pretty straight-forward, the following takes place after you swipe the card:

    • Authorization: When the debit card is swipes, the terminal at the merchant will read the magnetic strip and transmit the data to the card-processing network (Visa or MasterCard). The network will then check if the transaction date is correctly formatted. Fraud analysis is performed after which the information is forwarded to the Bank that issued the card. The issuer will validate the card and will confirm if sufficient funds are available in the account and if the transaction is approved. The issuer of the card will authorise the transaction in no time.
    • Clearing: This is typically done at the end of the day or throughout the day. The merchant will send the authorised transactions to the network. Network will split them up and recompile the transactions and send them to the issuer. The issuers will then post the transaction to their customer’s account.
    • Settlement: The network will calculate how much money each issuer owes them and how much money the network owes the merchants. The funds are either paid on the same day as the swipe, the next day, or within a few days. Most merchants contract their debit card processing task to large financial companies or acquirers. The acquirers will represent the merchant and when the merchant is paid, it happens through an acquiring bank.

    What is a Debit Card PIN?

    PIN is a personal identification number that will be sent to you upon request. The numeric password is used to authenticate a user. The PIN number has to be entered to authorise a transaction. If you have used a wrong PIN more than 3 times, your card will be blocked. The PIN number is usually 4 digits. You are required to enter the number when you are withdrawing money from the ATM or to pay for any purchases. The PIN makes all your transactions safe and you will be protected from fraudulent activities.

    Differences between Debit Card, Credit Card, ATM Card, and Prepaid Card

    Following are the various differences of debit card, credit card, ATM card, and prepaid cards:

    Debit Card

    Debit cards are issued by the banks and it takes funds directly from your bank account. You need not carry cash around. It is convenient to pay for purchases with your debit cards. They are accepted worldwide.

    • Advantages: Debit cards use is limited to the existing funds in your account that it is linked to. You will not get into debt and you will not be charged any interest. You need not have a good credit score to get a debit card.
    • Disadvantages: The biggest drawback is that there is no possibility of overdraft. You do not get as much protection as credit cards. The merchant disputes are harder to win. They do not help you build a credit score. You will have to keep a track of your expenses to avoid having insufficient funds to complete a transaction. Some banks may charge non-sufficient funds fees. If your PIN number is stolen, you can lose all the funds available in your account.

    Credit Card

    When you use your credit card, you are borrowing money from the bank or financial institution. The issuer pays the vendor and you will have to pay the issuer. In addition to the amount you borrow, you will be paying interest on the amount borrowed if you do not repay it within the grace period.

    • Advantages: You get consumer protection on the purchases made. This is a great tool to establish a credit history which can improve the credit rating. You can earn rewards, get cashback, or build your frequent flier miles. If you are paying the entire balance, you will not incur any interest.
    • Disadvantages: The chances of getting into debt are higher if you are not clearing the balance in full. You will be charge annual fees. You can demolish your credit score if you do not use your credit card carefully.

    ATM Card

    ATM card is a payment card that lets the customers access an ATM to deposit, withdraw cash, or to obtain account information. Most debit and credit cards function as ATM cards.

    • Advantages: ATM cards can be used at branch and for in-store EFTPOS purchases. ATM card is also a debit card and it can be used for a PIN based debit transaction.
    • Disadvantages: You do not get overdraft facility. If you lose your card and the PIN number is known to the thieves, you will lose out on the funds in your bank account.

    Prepaid Card

    Prepaid cards are reloadable cards. You can spend up to the amount that you have deposited in the account. You can use a prepaid card if you like to control your expenses.

    • Advantages: There is no way you will get into debt with your prepaid card. They are safer than the debit cards. You will not be damaging your credit. If your card is stolen, you will not lose the entire amount from your bank account as it is not linked to your bank account. You can transfer or reload the card at any time for no fee. The prepaid cards can be used like credit cards except you are not using the line of credit. There is no interest rates charged. Some cards even report to the credit bureaus. They are useful in training teens and students about owning a credit card. It is ideal for parents who do not wish to give their child cash or a credit card.
    • Disadvantages: If your prepaid card is stolen, you may have a tough time getting your cash back.

    How to Apply for Debit Card in Philippines?

    Most of the leading banks in the Philippines offer debit cards to their customers. The process to apply for a debit card is easy and hassle-free. You can choose any bank you want to open a checking account with. Once you have completed the formalities, you will get access to your account and you will be given a debit card.

    Debit Card Withdrawal Limits

    When you are using a debit card, you can only access the funds available in your bank account. You cannot withdraw more than what is available in your account. If you have insufficient balance, your transaction will be declined. Most checking accounts require you to maintain a minimum balance, if you fail to maintain the minimum balance required, you will be charged a non-sufficient funds fee.

    Card Type ATM Withdrawal Limit
    All Regular BPI Debit Cards PHP 20,000 per day
    Gold BPI Debit Card PHP 50,000 per day
    BDO Debit Card PHP 50,000 per day
    Metrobank Debit Card PHP 30,000 per day
    Security Bank Debit Card PHP 40,000  per day
    Landbank Debit Card PHP 50,000 per day
    PBCOM Debit Card PHP 50,000 per day
    PNB Debit Card PHP 50,000 per day

    FAQs about Debit Card

    1. What will happen if I enter the wrong PIN number?
    2. Your card will be blocked if you enter the wrong PIN number more than 3 times.

    3. Will I get an overdraft facility with my debit card?
    4. You may get an overdraft facility on the account, but not on your debit card.

    5. Will I be charged any annual fees?
    6. No, you will not be charged any annual fees for using a debit card.

    7. What are the types of debit cards issued in the Philippines?
    8. In the Philippines, you get Visa or MasterCard debit cards.

    9. What is a debit card PIN?
    10. A debit card PIN is a numeric password that is used to authenticate a user. They are usually 4 digit long.

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