What is a Debit Card?
A debit card uses money from your checking account for the purchases that you make. Thus, it is also known as a check card. It is a convenient and safe alternative to carrying cash or checks when you go out to buy things. Debit cards work for both online and in-person purchases. You can use your debit card at any automated teller machine to withdraw cash, transfer between two accounts and deposit checks. Most banks have their applications for mobile banking and you can also sync your debit cards with these mobile apps for faster and convenient online payments.
Types of Debit Cards in Philippines
There are different types of debit cards in Philippines.
- MasterCard Debit Card
- Visa Debit Card
- ATM Debit Card
Top Banks offering Debit Cards in Philippines
- BDO Debit Card
- BPI Debit Card
- Metrobank Debit Card
- Security Bank Debit Card
- Landbank Debit Card
- Union Bank Debit Card
- Maybank Debit Card
- HSBC Debit Card
- Sterling bank of Asia Debit Card
Key Features and Benefits of a Debit Card
There are several benefits and features that are offered by the debit cards in Philippines.
- You can use your debit card to withdraw cash from the ATMs as per your convenience.
- You can easily pay your bills online using the debit card.
- Debit cards can be used for shopping, fuel recharge and buying groceries.
- Buy movie tickets, flight tickets or book a hotel room using these cards.
- Most of the cards are accepted across the globe.
- The debit cards can offer you privileges like rewards and cashback too.
- The cards are easy to use. All you need to do is, swipe the card and enter your PIN.
- You can enjoy the benefits of cashless shopping.
- The transactions that you make are completely secured. You can keep track of all the expenses.
How does a Debit Card work?
When a debit card is swiped at any terminal, the magnetic strip on the debit card is read by it. The magnetic strip can be found the back of the card. The data is then sent to a card processing network like Visa or MasterCard.
The network makes sure that the formatting of the pieces of transaction data is correct. After performing a fraud analysis, the information is forwarded to the issuer of the debit card. The card issuer validates the fact that the debit card has not been reported lost or stolen, confirms that sufficient funds are available on the card and also sends a notification to the merchant about the success or failure of the transaction.
The data that is transmitted includes the transaction amount, car number and date. It also includes other information like name of the merchant, location of the outlet and the category code of the merchant. The MCC or Merchant Category Code is used for claiming rewards, if any.
How to apply for a Debit Card in Philippines?
The leading banks in Philippines offer debit cards for their customers. It is very easy to apply for a debit card in Philippines and the process is hassle-free. Choose a bank that you want to open a checking account with. Walk into a nearest branch of that bank and apply for a checking account. Once your application is approved, you will get access to the checking account and the debit card. You must provide all the documents that are required for opening the account and meet the eligibility criteria, if any.
What is a Debit Card PIN?
Debit Card PIN refers to the Personal Identification Number of the card. It is numeric code of four digits which is used as a security feature while carrying out purchase transactions. So, while withdrawing money from any ATM or while buying a product from a merchant outlet, this particular PIN is required. Once the card is swiped, you must enter the four digit numeric code for validating the transaction. The PIN feature makes all your transactions safe and secures you against all fraudulent activities.
Debit Card Fees
There are certain fees and charges that you might have to pay while using a debit card.
- If you use an ATM which does not belong to the network of your bank or debit card issuer, you might have to pay for the transaction.
- If you are using the ATMs to withdraw money using your debit card in a foreign country, there might be charges applicable for that.
- In case, you lose your debit card or it is stolen, and you apply for a replacement card, applicable charges will be levied.
- If you do not have sufficient balance or basic minimum balance, specified by the bank, in your checking account, you might face penalty charges when you use your debit card.
Difference between Debit Cards and ATM Cards
|Debit Cards||ATM Cards|
|Debit cards can be used at automated teller machines and point-of-sale outlets. They use PIN or signatures to authenticate transactions at the merchant outlets. When you open a checking account, you, generally, are issued a debit card.||ATM cards are generally used for withdrawing cash from the automated teller machines. Some cards can be used at merchant outlets for PIN based transactions.|
How to choose a Debit Card?
Choosing the right debit card needs a lot of research. You must go through all the features and perks that the card has to offer. Ensure that the card you want is issued by the bank of your choice. Compare different debit cards on the comparison websites before you go ahead and pick one for yourself. Some cards have rewards, cashback, etc. associated with them. Make sure that you get what you need, based on your spending habits.