FACTOID # 1: Idaho produces more milk than Iowa, Indiana and Illinois combined.
 
 Home   Encyclopedia   Statistics   States A-Z   Flags   Maps   FAQ   About 
   
 
WHAT'S NEW
 

SEARCH ALL

FACTS & STATISTICS    Advanced view

Search encyclopedia, statistics and forums:

 

 

(* = Graphable)

 

 


Encyclopedia > Debit card
Look up debit card in
Wiktionary, the free dictionary.

A Debit card is a plastic card which provides an alternative payment method to cash when making purchases. Its functionality is more similar to writing a cheque as the funds are withdrawn directly from either the bank account (often referred to as a cheque card), or from the remaining balance on the card. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card.[1][2] Wiktionary (a portmanteau of wiki and dictionary) is a multilingual, Web-based project to create a free content dictionary, available in over 151 languages. ... For other uses, see Cash (disambiguation). ... A bank account is a monetary account with a banking institution recording the balance of money for a customer. ...


The use of debit cards has become wide-spread in many countries and has overtaken the cheque, and in some instances cash transactions by volume. Like credit cards, debit cards are used widely for telephone and Internet purchases. This may cause inconvenient delays at peak shopping times (e.g., the last shopping day before Christmas), caused when the volume of transactions overloads the bank networks. This article is about the payment system. ... For other uses, see Christmas (disambiguation). ...


In some countries the debit card is multipurpose, acting as the ATM card for withdrawing cash and as a cheque guarantee card. Merchants can also offer "cashback"/"cashout" facilities to customers, where a customer can withdraw cash along with their purchase. An ATM card is an ISO 7810 card used to withdrawal money from an ATM machine from an account. ...

Contents

Credit or Debit?

For consumers, the difference between a "debit card" and a "credit card" is that the debit card immediately deducts the balance from a checking or savings account, whereas the credit card allows the consumer to spend money they might not actually have (but promise to pay later to the card-issuing bank).


In some countries: When a merchant asks "credit or debit?" the answer determines whether they will use a merchant account affiliated with one or more traditional credit card associations (Visa, MasterCard, Discover, American Express, etc.) or an interbank network typically used for debit and ATM cards, like PLUS, Cirrus (interbank network), or Maestro. A merchant account is a specialized bank account that allows a business to accept credit cards (primarily Visa and Mastercard), debit cards, gift cards and other forms of payment cards. ... An interbank network, also known as an ATM consortium or ATM network, is a network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks. ... Addition is one of the basic operations of arithmetic. ... Cirrus is a worldwide interbank network. ... Maestro is an international debit card service; a joint venture by MasterCard and Europay International. ...


In other countries: When a merchant asks "credit or debit?" the answer determines whether the transaction will be handled as a credit transaction or as a debit transaction. In the former case, the merchant is more likely than in the latter case to have to pay a fee defined by fixed percentage to the merchant's bank. In both cases, the merchant may have to pay a fixed amount to the bank. In either case, the transaction will go through a major credit/debit network (such as Visa, MasterCard, Visa Electron or Maestro). In either case, the transaction may be conducted in either online or offline mode, although the card issuing bank may choose to block transactions made in offline mode. This is always the case with Visa Electron transactions, usually the case with Maestro transactions and rarely the case with Visa or MasterCard transactions.


In yet other countries: A merchant will only ask for "credit or debit?" if the card is a combined credit+debit card. If the payee chooses "credit", the credit balance will be debited the amount of the purchase; if the payee chooses "debit", the bank account balance will be debited the amount of the purchase.


This may be confusing because "debit cards" which are linked directly to a checking account are sometimes dual-purpose, so that they can be used seamlessly in place of a credit card, and can be charged by merchants using the traditional credit networks. There are also "pre-paid credit cards" which act like a debit card but can only be charged using the traditional "credit" networks. The card itself does not necessarily indicate whether it is connected to an existing pile of money, or merely represents a promise to pay later.


In some countries: The "debit" networks typically require that purchases be made in person and that a personal identification number be supplied. The "credit" networks allow cards to be charged with only a signature, and/or picture ID. PINs are most often used for ATMs but are increasingly used at the Point of sale, especially for debit cards. ...


In other countries: Identification typically requires the entering of a personal identification number or signing a piece of paper. This is regardless of whether the card network in use mostly is used for credit transactions or for debit transactions. In the event of an offline transaction (regardless of whether the offline transaction is a credit transaction or a debit transaction), identification using a PIN is impossible, so only signatures on pieces of paper work. PINs are most often used for ATMs but are increasingly used at the Point of sale, especially for debit cards. ...


In some countries: Consumer protections also 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 to debit transactions. Consumers disputing charges may find it easier to do so with 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 liability for unauthorized charges is the same for both debit and credit cards. Includes demand deposits, ATS, NOW, and other checkable deposits. ... It has been suggested that this article or section be merged with Cheque. ...


In other countries: In India, the 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 the bank's judgement 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 as a 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 the goods or services in accordance with laws allowing them to do so. Banks consider the purchases as having 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 swiping.


Types of debit card

Debit card
Debit card
An example of the front of a typical debit card: Issuing bank logo EMV chip Hologram Card number Card brand logo Expiry date Cardholder's name
An example of the front of a typical debit card:
  1. Issuing bank logo
  2. EMV chip
  3. Hologram
  4. Card number
  5. Card brand logo
  6. Expiry date
  7. Cardholder's name
An example of the reverse side of a typical debit card: Magnetic stripe Signature strip Card Security Code
An example of the reverse side of a typical debit card:
  1. Magnetic stripe
  2. Signature strip
  3. Card Security Code

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, "EC electronic cash" (formerly Eurocheck) in Germany and EFTPOS cards in Australia and New Zealand. The need for cross-border compatibility and 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 rebranded with the internationally recognised 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 (e.g. EC cards in Germany, Laser cards in Ireland, Switch and Solo in the UK, Pinpas cards in the Netherlands, Bancontact cards in Belgium, etc.). Debit card systems have become popular in video arcades, bowling centers and theme parks. The use of a debit card system allows operators to package their product more effectively while monitoring customer spending. An example of one of these systems is ECS by Embed International. Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... ATM]]s, for authenticating credit and debit card payments. ... This article is about the photographic technique. ... The numbers found on credit cards have a certain amount of internal structure, and share a common numbering scheme. ... Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... Marcus Boltonas (Mark Boltan) Marcus Boltonas Brief history The magnetic stripe which is often reffered to as the Bolton is derived from the Marcus Boltonas from the Jurassic period. ... For other uses, see Signature (disambiguation). ... The Card Security Code is located on the back of MasterCard, Visa and Discover credit or debit cards and is typically a separate group of 3 digits to the right of the signature strip. ... 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. ... MasterCard Worldwide (NYSE: MA) is a multinational corporation based in Purchase, NY in the United States. ... Switch was a debit card used in the United Kingdom. ... Solo is a debit card produced by Switch Card Services in the UK, specifically for people under 18 or on lower incomes. ... Carte Bleue Visa from Société Générale Carte Bleue (or Blue Card in English) is a major debit card payment scheme operating in France. ... Laser is the primary debit card system used in the Republic of Ireland. ... The Single Euro Payments Area and its 31 member states The Single Euro Payments Area (SEPA) initiative for the European financial infrastructure involves the creation of a zone for the Euro in which all electronic payments are considered domestic, and where a difference between national and international payments does not... For other uses, see Euro (disambiguation). ... Switch was a debit card used in the United Kingdom. ... Maestro is an international debit card service; a joint venture by MasterCard and Europay International. ... MasterCard Worldwide (NYSE: MA) is a multinational corporation based in Purchase, NY in the United States. ... Maestro is an international debit card service; a joint venture by MasterCard and Europay International. ... // Embed International is a supplier manufacturer of debit card systems and management applications for the amusement, leisure and retail industries. ...


FSA debit cards

In the U.S.A, a FSA debit card only allows medical expenses. It is used by some banks for withdrawals from their FSAs, MSAs, and HSAs as well. They have Visa or MasterCard logos, but cannot be used as "debit cards", only as "credit cards"", and they are not accepted by all merchants that accept debit and credit cards, but only by those that accept FSA debit cards. Merchant codes and product codes are used at the point of sale (required by law by certain merchants by certain dates in the USA) to restrict sales if they do not qualify. Because of the extra checking and documenting that goes on, later, the statement can be used to substantiate these purchases for tax deductions. In the occasional instance that a qualifying purchase is rejected, another form of payment must be used (a check or payment from another account and a claim for reimbursement later). In the more likely case that non-qualifying items are accepted, the consumer is technically still responsible, and the discrepancy could be revealed during an audit. For other uses, see United States (disambiguation) and US (disambiguation). ... An FSA Debit Card is a special type of debit card issued in the United States to access tax-favored spending accounts such as flexible spending accounts (FSA) and health reimbursement accounts (HRA), and sometimes health savings accounts (HSA) as well. ... An FSA Debit Card is a special type of debit card issued in the United States to access tax-favored spending accounts such as flexible spending accounts (FSA) and health reimbursement accounts (HRA), and sometimes health savings accounts (HSA) as well. ... In the United States, a medical savings account (MSA) is an account, generally associated with self-employed individuals, in which tax-deferred deposits can be made for medical expenses. ... A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). ... “VISA” redirects here. ... MasterCard Worldwide (NYSE: MA) is a multinational corporation based in Purchase, NY in the United States. ... An FSA Debit Card is a special type of debit card issued in the United States to access tax-favored spending accounts such as flexible spending accounts (FSA) and health reimbursement accounts (HRA), and sometimes health savings accounts (HSA) as well. ...


France

Banks in France charge annual fees for debit cards (despite card payments being very cost efficient for the banks), yet they do not charge personal customers for checkbooks or processing checks (despite checks being very costly for the banks). This imbalance most probably dates from the unilateral introduction in France of Chip and PIN debit cards in the early 1990s, when the cost of this technology was much higher than it is now. Credit cards of the type found in the United Kingdom and United States are unusual in France and the closest equivalent is the deferred debit card, which operates like a normal debit card, except that all purchase transactions are postponed until the end of the month, thereby giving the customer between 1 and 31 days of interest-free credit. The annual fee for a deferred debit card is around €10 more than for one with immediate debit. Most France debit cards are branded with the Carte Bleue logo, which assures acceptance throughout France. Most card holders choose to pay around €5 more in their annual fee to additionally have a Visa or a MasterCard logo on their Carte Bleue, so that the card is accepted internationally. A Carte Bleue without a Visa or a MasterCard logo is often known as a "Carte Bleue Nationale" and a Carte Bleue with a Visa or a MasterCard logo is often known as a "Carte Bleue Internationale". Many smaller merchants in France refuse to accept debit cards for transactions under €15.25 (equivalent to 100 French Francs) because of the minimum fee charged by merchants' banks per transaction. Merchants in France do not differentiate between debit and credit cards, and so both have equal acceptance. However, Visa's and MasterCard's regulations prohibit merchants from setting minimum charge amounts. American Express's policy is to discourage any merchant practices that create a "barrier to acceptance" and setting minimum charge limits is such a barrier. Amex does prohibit "discrimination" against the Amex card, which means they cannot have minimum charge for Amex but not for Visa and MasterCard but they cannot have a minimum charge for Visa and MasterCard because Visa and MasterCard prohibit this. Chip and PIN is the name of a government-backed initiative in the United Kingdom to implement the EMV standard for secure payments. ... Carte Bleue Visa from Société Générale Carte Bleue (or Blue Card in English) is a major debit card payment scheme operating in France. ... 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. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... Carte Bleue Visa from Société Générale Carte Bleue (or Blue Card in English) is a major debit card payment scheme operating in France. ... Carte Bleue Visa from Société Générale Carte Bleue (or Blue Card in English) is a major debit card payment scheme operating in France. ... 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. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... Carte Bleue Visa from Société Générale Carte Bleue (or Blue Card in English) is a major debit card payment scheme operating in France. ... Carte Bleue Visa from Société Générale Carte Bleue (or Blue Card in English) is a major debit card payment scheme operating in France. ... 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. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... Carte Bleue Visa from Société Générale Carte Bleue (or Blue Card in English) is a major debit card payment scheme operating in France. ... ISO 4217 Code FRF User(s) Monaco, Andorra, France except New Caledonia, French Polynesia, and Wallis and Futuna ERM Since 13 March 1979 Fixed rate since 31 December 1998 Replaced by €, non cash 1 January 1999 Replaced by €, cash 1 January 2002 € = 6. ...


United Kingdom

In the United Kingdom, banks started to issue debit cards in the late 1980s in a bid to reduce the number of cheques being used at the point of sale, which are costly for the banks to process. As in most countries, fees paid by merchants in the United Kingdom to accept credit cards are a percentage of the transaction amount[citation needed], which funds card holders' interest-free credit periods as well as incentive schemes such as points, airmiles or cashback. On the contrary, debit cards do not usually have these characteristics, and so the fee for merchants to accept debit cards is a low fixed amount, regardless of transaction amount[citation needed]. For very small amounts, this means it is cheaper for a merchant to accept a debit card than a credit card[citation needed]. Although merchants won the right through The Credit Cards (Price Discrimination) Order 1990 to charge customers different prices according to the payment method, few merchants in the UK charge less for payment by debit card than by credit card, the most notable exceptions being budget airlines, travel agents and IKEA[citation needed]. Debit cards in the UK lack the advantages offered to holders of UK-issued credit cards, such as free incentives (points, airmiles, cashback etc), interest-free credit and protection against defaulting merchants under Section 75 of the Consumer Credit Act 1974. Almost all establishments in the United Kingdom that accept credit cards also accept debit cards (although not always Solo and Visa Electron), but a minority of merchants, for cost reasons, accept debit cards and not credit cards[citation needed] (for example the Post Office and, until 1999, John Lewis). Boeing 737-200 of low-cost Irish airline Ryanair A low-cost carrier (also known as a no-frills or discount carrier) is an airline that offers low fares but eliminates most traditional passenger services. ... A travel agency is a store where individuals or families go to buy travel packages. ... World Map showing locations of IKEA stores in 2007. ... Solo is a debit card produced by Switch Card Services in the UK, specifically for people under 18 or on lower incomes. ... Visa Electron logo. ... The Post Office in Oxford. ... For the former (1856-1991) unrelated UK department store, see Lewiss. ...


Rest of Europe

Most merchants usually accept debit cards[citation needed], because the fees for accepting them are much lower than credit card fees, for example in Germany 0.3% with a minimum of €0.08[3] .


In Poland, local debit cards, such as PolCard, have become largely substituted with international ones, such as Visa, MasterCard, or the unembossed Visa Electron or Maestro. Most banks in Poland block Internet and MOTO transactions with unembossed cards, requiring the customer to buy an embossed card or a card for Internet/MOTO transactions only[citation needed]. The number of banks which do not block MOTOIO transactions on unembossed cards has recently started to increase. This article or section does not cite its references or sources. ... This article or section does not cite its references or sources. ...


In Hungary debit cards are far more common and popular than credit cards. Many Hungarians even refer to their debit card ("betéti kártya") mistakenly using the word for credit card ("hitelkártya").


Online and offline debit transactions

Typical debit card transaction machine, branded to McDonalds.

There are currently two ways that debit card transactions are processed: online debit (also known as PIN debit) and offline debit (also known as signature debit). In some countries including the United States and Australia, they are often referred to at point of sale as "debit" and "credit" respectively, even though in either case the user's bank account is debited and no credit is involved. Image File history File linksMetadata Download high-resolution version (3072x2048, 2856 KB) Photo of Debit Card swipe machine from Rest Stop in Framingham, MA by Brian Katt. ... Image File history File linksMetadata Download high-resolution version (3072x2048, 2856 KB) Photo of Debit Card swipe machine from Rest Stop in Framingham, MA by Brian Katt. ... The BancNet (BN) Point-Of-Sale System is a local PIN-based electronic funds transfer (EFTPOS) payments solution operated by BancNet on behalf of the member banks and China UnionPay (CUP). ...


Online debit ("PIN debit" or "debit")

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 and some online cards require such authentication for every transaction, essentially becoming enhanced automatic teller machine (ATM) cards. One difficulty in using online debit cards 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 have been forgotten or not authorized by the owner of the card. Banks in some countries, such as Canada and Brazil, only issue online debit cards. PINs are most often used for ATMs but are increasingly used at the Point of sale, especially for debit cards. ... For other uses of the terms authentication, authentic and authenticity, see authenticity. ... Outdoor ATMs may be free-standing, like this kiosk, or built into the side of banks or other buildings An automatic teller machine, automated teller machine (ATM) or cash machine is an electronic device that allows a banks customers to make cash withdrawals and check their account balances without... An ATM card is an ISO 7810 card used to withdrawal money from an ATM machine from an account. ... The BancNet (BN) Point-Of-Sale System is a local PIN-based electronic funds transfer (EFTPOS) payments solution operated by BancNet on behalf of the member banks and China UnionPay (CUP). ... For other uses, see Lag (disambiguation). ...


In the United States, most online debit transactions are handled by regional ATM networks, though VISA and MasterCard each own online debit networks (Interlink and Maestro, respectively). Online debit is usually provided as a secondary feature on an offline debit card (Visa Check Card or Debit MasterCard); those customers that do not qualify for offline debit cards are often issued ATM cards with online debit capability through the regional ATM, Interlink and/or Maestro networks. The Visa International Service Association of San Francisco, California, USA, commonly called VISA, is an economic joint venture of 21,000 financial institutions that issue and market Visa products. ... MasterCard Worldwide (NYSE: MA) is a multinational corporation based in Purchase, NY in the United States. ... Maestro is an international debit card service; a joint venture by MasterCard and Europay International. ...


In the United Kingdom, Solo and Visa Electron are examples of online debit cards, which are typically issued by banks to customers whom the bank does not want to go overdrawn under any circumstances, for example under-18s. Solo is a debit card produced by Switch Card Services in the UK, specifically for people under 18 or on lower incomes. ... Visa Electron logo. ...


In the Philippines, all three national ATM network consortia offer proprietary PIN debit. This was first offered by Express Payment System in 1987, followed by Megalink with Paylink in 1993 then BancNet with the Point-of-Sale in 1994. The Express Payment System, more commonly known as the EPS, is the EFTPOS system originally of the ATM cards of Bank of the Philippine Islands and its subsidiaries, BPI Family Savings Bank and BPI Direct Savings Bank. ... This article is about the year 1987. ... MegaLink is an interbank network connecting the ATM networks of twenty-three major banks in the Philippines. ... Year 1993 (MCMXCIII) was a common year starting on Friday (link will display full 1993 Gregorian calendar). ... BancNet is an interbank network connecting the ATM networks of thirty-four banks in the Philippines. ... This article describes checkout technology. ... Year 1994 (MCMXCIV) The year 1994 was designated as the International Year of the Family and the International Year of the Sport and the Olympic Ideal by the United Nations. ...


Online debit transactions may be conducted either as a debit or a credit transaction. For example, most (all?) Japanese shops allowing debit transaction in online mode will conduct the transaction as a credit transaction.


Offline debit ("signature debit" or "credit")

Offline debit cards have the logos of major credit cards (e.g. Visa or MasterCard) or major debit cards (e.g. Maestro in the United Kingdom and other countries, but not the United States) and are used at the point of sale like a credit card. This type of debit card may be subject to a daily limit, and/or a maximum limit equal to the current/checking account balance from which it draws funds. Transactions conducted with offline debit cards require 2-3 days to be reflected on users’ account balances. For other uses, see Logo (disambiguation). ... 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. ... MasterCard Worldwide (NYSE: MA) is a multinational corporation based in Purchase, NY in the United States. ... Maestro is an international debit card service; a joint venture by MasterCard and Europay International. ... The BancNet (BN) Point-Of-Sale System is a local PIN-based electronic funds transfer (EFTPOS) payments solution operated by BancNet on behalf of the member banks and China UnionPay (CUP). ...


In the U.S. and Australia, offline debit transactions are inaccurately referred to as "credit" transactions even though no credit is actually involved. This is because they are processed through the Visa or MasterCard networks in the same manner as actual credit card transactions. Since they are handled like any other Visa or MasterCard, U.S. and Australian offline debit cards are also accepted worldwide at virtually all merchants that accept credit cards of the corresponding brand, even if they do not accept their own country's debit cards.


In the U.S., Visa calls its debit card Visa Check Card; MasterCard calls its debit card Debit MasterCard. The majority of U.S. debit cards are Check Cards.[4] Discover Card has announced an offline debit card through its regional ATM network Pulse; however, few if any banks offer this card. A fourth major U.S. credit card network, American Express, offers prepaid gift cards, which work in a similar fashion.[5] Discover Network acceptance mark Discover Card is one of the four major credit card brands issued primarily in the United States, with over 50 million cardholders. ... PULSE is an interbank network and EFT association purchased by Discover Card in 2005. ... American Express (NYSE: AXP), sometimes known as AmEx or Amex, is a diversified global financial services company, headquartered in New York City. ...


Some merchants in the U.S. have recently been allowed to bypass the signature requirement for "credit" sales (including offline debit) if the total sale is under a certain dollar amount.[6] This is based on the assumption that customers want a fast point-of-sale process, and low-value transactions are not the activity of a fraudulent user. Some Japanese stores also allow people to pay using a card without signing or entering a PIN code. When using this feature, Sunkus will read the magnetic tape, reserve the money immediately, and settle the transactions in batches up to a month later, while Lawson will read the chip, reserve the money immediately, and settle the transactions individually just a few days later. Some other Japanese convenience store chains also accept card purchases with neither PIN codes nor signatures, as do some Swedish vending machines (payphones, parking meters, bus/train ticket vending machines), either by reading the magnetic tape (ticket vending machines) or by reading the chip (payphones/parking meters). Sunkus convenience store in Tokyo Japan Sunkus (サンクス; Sankusu) is a konbini or convenience store franchise chain in Japan. ... Look up Lawson in Wiktionary, the free dictionary. ...


In the United Kingdom, Maestro (formerly Switch) and Visa Debit (formerly Delta) are examples of offline debit cards.[7] This is in contrast to the U.S. where Maestro is an online debit brand.[citation needed] Maestro is an international debit card service; a joint venture by MasterCard and Europay International. ... Switch was a debit card used in the United Kingdom. ... This article is about the former Delta debit card now issued under the VISA brand in the United Kingdom. ...


In some countries and with some banks and merchant service organizations, a "credit" or offline debit transaction is without cost to the purchaser beyond the face value of the transaction, while a small fee may be charged for a "debit" or online debit transaction (although it is often absorbed by the retailer). Other differences are that online debit purchasers may opt to withdraw cash in addition to the amount of the debit purchase (if the merchant supports that functionality); also, from the merchant's standpoint, the merchant pays lower fees on online debit transaction as compared to "credit" (offline) debit transactions. A drawing of a self-service store Retailing consists of the sale of goods/merchandise for personal or household consumption either from a fixed location such as a department store or kiosk, or away from a fixed location and related subordinated services (Definition of the WTO (last page). ...


The fees charged to merchants on offline debit purchases—and the lack of fees charged merchants for processing online debit purchases and paper checks—have prompted some major merchants in the U.S. to file lawsuits against debit-card transaction processors such as Visa and MasterCard. In 2003, Visa and MasterCard agreed to settle the largest of these lawsuits and agreed to settlements of billions of dollars. Civil action redirects here. ... In law there are two main meanings of the word settlement. ...


Many consumers[who?] prefer "credit" transactions because of the lack of a fee charged to the consumer/purchaser; also, a few debit cards in the U.S. offer rewards for using "credit" (e.g. Washington Mutual's "Wamoola"). However, since "credit" costs more for merchants, many terminals at PIN-accepting merchant locations now make the "credit" function more difficult to access. For example, if you swipe a debit card at Wal-Mart in the U.S., you are immediately presented with the PIN screen for online debit; to use offline debit you must press "cancel" to exit the PIN screen, then press "credit" on the next screen. Wal-Mart Stores, Inc. ...


One additional problem surrounding the use of debit cards is their use at a self-service gas pump like those common in the U.S. The customer might want to purchase fuel on their debit card, but the pump's computer does not know how much fuel the customer wants. The pump is activated by the customer presenting their card to a card reader (see methods described above) and possibly entering a PIN. At this point the pump will dispense fuel, though no sales transaction has completed. The pump has no way of knowing how much fuel will be sold, nor how much money is available in the customer’s debit account. In a typical sale transaction, trying to spend more money than is available in your account (credit or debit) will result in a "no-sale" alert to the merchant, and the sale does not occur. At a self-serve fuel pump, the fuel is already in the customer's tank by the time the bank knows the final sale price. Several solutions to this problem are in place, such as denying $1 pre-authorizations when an account holds less than $10 while still allowing transactions for specific amounts, but the concept of delivering the merchandise before the sales transaction plagues the debit card system. The commission is sometimes so high that the gas station sometimes actually loses money when someone pays for gas with credit. When pay at the pump started in the 1980s, many gas stations offered a discount for paying with cash. Most of them stopped doing that because the discount did not significantly increase their cash sales.[citation needed]


Issues with deferred posting of offline debit

To the consumer, a debit transaction is perceived as occurring in real-time; i.e. the money is withdrawn from their account immediately following the authorization request from the merchant, which in many countries, is the case when making an online debit purchase. 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 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; though it can also have a lag time of a few days before the transaction is posted to the account, it can be many days to a month or more before the consumer makes repayment with actual money. To meet Wikipedias quality standards, this article or section may require cleanup. ...


Because of this, in the case of a benign or malicious error by the merchant or bank, a debit transaction may cause more serious problems (e.g. money not accessible; overdrawn account) than in the case of a credit card transaction (e.g. credit not accessible; over credit limit). This is especially true in the United States, where writing "hot checks" is a crime in every state, but exceeding your credit limit is not. A credit limit is the maximum amount of credit that a bank or other lender will extend to a debtor, or the maximum that a credit card company will allow a card holder to borrow on a single card. ...


Cards for mail, telephone and Internet use only

Special pre-paid Visa cards for mail, telephone (MOTO) and Internet use only are made available by a small number of banks. They are sometimes called "virtual Visa cards", although they usually do exist in the form of plastic. An example is 3V. Recently, these virtual cards have been increasingly issued by non-financial institutions such as grocery and convenience stores to consumers as a replacement for money orders (such as PaidByCash in the United States). Such cards can be used whenever the remote store accepts Visa cards. Before making the transaction, the customer transfers the required amount of money from his main account to the card's sub-account using the bank's website or the telephone. Next, the customer gives the card number and the CVV2 code to the merchant, who authorizes the transaction electronically, as with a regular Visa card. If there is enough money on the sub-account, the bank grants the authorization and locks the adequate amount on the sub-account. For the courier company formerly known as 3V, visit TNT N.V. 3V is a payment solution marketed by Permanent TSB and Alphyra and is running in Ireland and in the United Kingdom. ... PaidByCash is a cash payment system for Internet retailers allowing them to easily accept cash payment from their e-commerce customers. ... The Card Security Code (CSC) a. ...


Such a card prevents fraud by a card number thief even if the card is not blocked, because the customer normally does not store any money on the sub-account and fraudulent transactions do not get authorized by the bank. For extra security, the CVV2 code is not printed on the card but rather sent separately to the customer in a secured envelope.


The bank also rejects local transactions, that is ones that are not made over the Internet, mail or telephone. However, some merchants use software incompatible with Visa regulations and send authorization requests that wrongly tell the bank that the transaction is not a MOTO/Internet one, in which case the bank rejects the request. Additionally, some merchants do not use electronic authorization at all, in which case the transaction cannot be completed as well. For these two reasons the card is unusable with a small minority of Internet, telephone and postal stores.


Financial access

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 expatriated workers to send money home to their families holding an affiliated debit card. A credit card system is a type of retail transaction settlement and credit system, named after the small plastic card issued to users of the system. ... For the band, see Expatriate (band). ...


Debit cards around the world

In some countries, banks tend to levy a small fee for each debit card transaction. In some countries (e.g. 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 the transaction fee would absorb the profit margin on the sale, making the transaction uneconomic for the retailer. Profit margin, Net Margin or Net Profit Ratio all refer to a measure of profitability. ...


Canada

Main article: Interac

Canada has a nation-wide EFTPOS system, called Interac Direct Payment. Since being introduced in 1984, IDP has become the most popular payment method in the country. Interac Logo Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. ... Interac Logo Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. ... This article is about the year. ...


In Canada, 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[citation needed]. This popularity may be partially attributable to two main factors: the convenience of not having to carry cash, and the availability of automated bank machines (ABMs) and Direct Payment merchants on the network. Interac Logo Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. ...


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 the Interac network. A stored-value card represents money on deposit with the issuer, and is similar to a debit card. ... Interac Logo Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. ...


In Canada, the bank cards can only be used at POS and ABMs. There are only a couple of MasterCard branded debit cards in Canada. HorizonPlus offers one through Mint, also branded as the MuchMusic card. MoneyMart stores also offer the Titanium MasterCard debit card, all of which function exactly like debit cards do in the US. Select financial institutions allow their clients to use their debit cards in the United States on the NYCE network.


Consumer protection in Canada

Consumers in Canada are protected under a voluntary code* entered into by all providers of debit card services, The Canadian Code of Practice for Consumer Debit Card Services[5] (sometimes called the "Debit Card Code"). Adherence to the Code is overseen by the Financial Consumer Agency of Canada (FCAC), which investigates consumer complaints. The Financial Consumer Agency of Canada (FCAC) is an agency of the Government of Canada. ...


According to the FCAC website, revisions to the Code that came into effect in 2005 put the onus on the financial institution to prove that a consumer was responsible for a disputed transaction, and also place a limit on the number of days that an account can be frozen during the financial institution's investigation of a transaction.


UK

In the UK debit cards (an integrated EFTPOS system) are an established part of the retail market and are widely accepted both by bricks and mortar stores and by internet stores. The term EFTPOS is not used at all by the public, debit card (or Switch card, even when referring to a Solo card) is the generic term used. Cards commonly in circulation include Maestro (previously Switch), Solo, Visa Debit (previously Visa Delta) and Visa Electron. Banks do not charge customers for EFTPOS transactions in the UK, but some retailers make small charges, particularly where the transaction amount in question is small. The UK has converted all debit cards in circulation to Chip and PIN (except for Chip and Signature cards issued to people having certain disabilities), based on the EMV standard, to increase transaction security; however, PINs are not required for internet transactions. In the jargon of eCommerce, bricks and mortar businesses are companies that have a physical presence (for example, a building made of bricks and mortar) and offer face-to-face consumer experiences, as opposed to an Internet-only presence (see online shop for comparison). ... Maestro is an international debit card service; a joint venture by MasterCard and Europay International. ... Switch was a debit card used in the United Kingdom. ... Solo is a debit card produced by Switch Card Services in the UK, specifically for people under 18 or on lower incomes. ... This article is about the former Delta debit card now issued under the VISA brand in the United Kingdom. ... Visa Delta is a major debit card issued by Visa in the United Kingdom. ... Visa Electron logo. ... Chip and PIN is the name of a government-backed initiative in the United Kingdom to implement the EMV standard for secure payments. ... ATM]]s, for authenticating credit and debit card payments. ...


New Zealand

The EFTPOS (electronic fund transfer at point of sale) system is highly popular in New Zealand, with more debit card terminals per head of population than any other country[6], and being used for about 60% of all retail transactions[7]. According to the largest EFTPOS network provider, "New Zealanders use EFTPOS twice as much as any other country."[8] EFTPOS (Electronic Funds Transfer at Point of Sale) is a device by which sales transactions can be directly debited to the customers bank account at the point of sale, through the use of a debit card (sometimes the same card used with Automatic Teller Machines). ... The BancNet (BN) Point-Of-Sale System is a local PIN-based electronic funds transfer (EFTPOS) payments solution operated by BancNet on behalf of the member banks and China UnionPay (CUP). ...


Virtually all retail outlets have EFTPOS terminals, particularly supermarkets, "dairies" (convenience stores), service stations, and bars. Increasingly Taxi operators, businesses operating from stands at events and even pizza delivery people have mobile EFTPOS terminals.


New Zealanders use EFTPOS for both small and large transactions. It would not be unusual for a New Zealander to use an EFTPOS card to pay for an amount as small as 50 cents NZD. Because EFTPOS is such an integral part of spending in New Zealand, rare network failures cause tremendous delays, inconvenience and lost income to businesses who must resort to manual "zip-zap" swipe machines to process EFTPOS transactions until the network returns to service.[9] Typically New Zealand merchants do not pay a fee per transaction as is the case in Australia and other countries. Transaction fees are typically borne by the customer, and retailers pay a fixed monthly equipment rental fee. As bank accounts for students and children under 18 years old typically attract low or no electronic transaction fees, the use of EFTPOS by the younger generations has become virtually ubiquitous. In recent times, major banks have started to offer accounts with no EFTPOS transaction fees. ISO 4217 Code NZD User(s) New Zealand, Cook Islands, Niue, Pitcairn Islands, Tokelau Inflation 2. ...


The Bank of New Zealand introduced EFTPOS to New Zealand in 1985 through a pilot scheme with petrol stations. The Bank of New Zealand (BNZ) is one of New Zealands largest banks. ...


EFTPOS is operated through two primary networks. One, EFTPOS NZ, owned by ANZ, and a second operated by Electronic Transaction Services Limited which is owned by ASB Bank, Westpac, and the Bank of New Zealand. The ETSL network processes approximately 80% of all EFTPOS transactions in New Zealand on their Paymark EFTPOS network and has over 60,000 points of sale.[10] The Australia and New Zealand Banking Group Limited (Australia and New Zealand Banking Group Limited; ASX: , NZX: ANZ, NYSE: ANZ), commonly called ANZ, is the third largest bank in Australia, after the National Australia Bank and the Commonwealth Bank. ... ASB is one of New Zealands largest banks, with branches throughout the country. ... Westpac Banking Corporation ASX: WBC NZX: WBC, usually called Westpac, is the fourth largest bank in Australasia, after the National Australia Bank, Commonwealth Bank of Australia and ANZ and one of the largest banks in the South Pacific. ... The Bank of New Zealand (BNZ) is one of New Zealands largest banks. ...


During July 2006 the five billionth EFTPOS payment flowed across the ETSL/Paymark EFTPOS network since the electronic form of payment was introduced in New Zealand in 1989.[11]


On 9 May 2007, Payment Express was certified as the first (and to date only) IP / broadband certified terminal allowing EFTPOS transactions to be transmitted securely over the Internet. is the 129th day of the year (130th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) was a common year starting on Monday of the Gregorian calendar in the 21st century. ...


However security issues regarding EFTPOS payments over the public Internet and the costs associated with legacy (dial up) terminal replacement has hampered the growth of the IP medium in New Zealand. One company, Merchant IP Services (MIPS) offers an alternative IP-POS solution allowing for the secure IP connection of most legacy (dial-up) terminals without the need for terminal replacement. The PCI compliant and Paymark certified MIPS IP-POS system consists of a MIPS WebNAC connected to the legacy EFTPOS terminal converting dial up transaction data to IP before transporting the payment securely to the bank switch.


In March 2008 ETSL Paymark partnered with virtual wallet payment system pago to create New Zealands first debit or "stored value" system for online shopping.


Australia

Debit cards in Australia are called different names depending on the issuing bank: Commonwealth Bank of Australia: Keycard; Westpac Banking Corporation: Handycard; National Australia Bank: FlexiCard; Australia and New Zealand Banking Group: Access card; Bendigo Bank: Cashcard. The Commonwealth Bank of Australia (ASX: CBA) is one of the largest financial institutions in Australia, founded in 1911 by the Australian Government. ... Westpac Banking Corporation ASX: WBC NZX: WBC, usually called Westpac, is the fourth largest bank in Australasia, after the National Australia Bank, Commonwealth Bank of Australia and ANZ and one of the largest banks in the South Pacific. ... The National Australia Bank or nab (ASX: NAB, LSE: NAB, NYSE: NAB, TYO: 8637) colloquially the National or the NAB. The NAB is part of the NAB Group. ... The Australia and New Zealand Banking Group Limited (Australia and New Zealand Banking Group Limited; ASX: , NZX: ANZ, NYSE: ANZ), commonly called ANZ, is the third largest bank in Australia, after the National Australia Bank and the Commonwealth Bank. ... Community Branch at Braidwood, New South Wales Bendigo Bank (ASX: BEN) operates some 300 branches, primarily in Victoria and Queensland. ...


EFTPOS is very popular in Australia and has been operating there since the 1980s. EFTPOS-enabled cards are accepted at almost all swipe terminals able to accept credit cards, regardless of the bank that issued the card, including Maestro cards issued by foreign banks, with most businesses accepting them, with 450,000 Point Of Sale terminals.[8] This article is about the payment system. ... Maestro is an international debit card service; a joint venture by MasterCard and Europay International. ...


EFTPOS cards can also be used to deposit and withdraw cash over the counter at Australia Post outlets participating in giroPost, 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 the old Transcend network in the last few years. Most early keycards (which were called keycards) were only usable for EFTPOS and at ATM or bank branches, whilst the new debit card system works in the same ways a credit card, except it will only use funds in the specified bank account. This means among other things, that it is suitable for electronic purchases without requiring 2 to 4 day bank to bank money transfers. Australia Post is the government-owned postal service of Australia. ...


Australia operates both electronic credit card transaction authorization and traditional EFTPOS debit card authorization systems. The difference between the two being that EFTPOS transactions are authorized by a personal identification number (PIN) while credit card transactions are usually authorized by the printing and signing of a receipt. If the user fails to enter the correct pin 3 times, the consequences range from the card being locked out and requiring 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 while EFTPOS transactions cost 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 the ability of banks, who typically provide merchant services to retailers on behalf of Visa, MasterCard or Bankcard, from stopping those retailers charging extra fees to take payment by credit card instead of cash or EFTPOS. Though only a few operators with strong market power have done so, the passing on of fees charged for credit card transactions may result in an increased use of EFTPOS. “VISA” redirects here. ... MasterCard Worldwide (NYSE: MA) is a multinational corporation based in Purchase, NY in the United States. ... BankCard, founded 1974, is a shared brand credit card issued by Australian financial institutions, and accepted, at present, only by businesses within mainland Australia, Tasmania, and Lord Howe Island; Norfolk Island; New Zealand; and the Cook Islands. ...


Germany

Debit cards have enjoyed wide acceptance in Germany for years. Facilities already existed before EFTPOS became popular with the Eurocheque card, an authorization system initially developed for paper checks where, in addition to signing the actual check, customers also needed to show the card alongside the check as a security measure. Those cards could also be used at ATM Terminals and at EFTPOS. These are now the only functions of such cards: the Eurocheque system (along with the name) was abandoned in 2002 during the transition from the Deutsche Mark to the Euro. As of 2005, most stores and petrol outlets have EFTPOS facilities. Processing fees are paid by the businesses, which leads to some business owners refusing debit card payments for sales totalling less than a certain amount, usually 5 or 10 euro. The Eurocheque was a type of cheque used in Europe until the 1990s. ... The word check has these meanings: In finance, a check is an order for transfer of money. ... The Deutsche Mark (DM, DEM) was the official currency of West and, from 1990, unified Germany. ... For other uses, see Euro (disambiguation). ...


Around 2000, an alternative method for EFTPOS payment was introduced, dubbed "Geldkarte" ("money card"). It uses a smart card chip on the front of a standard issue debit card (which still has the magnetic stripe on the back). This chip can be charged with up to 200 euro, and is advertised as a means of making medium to very small payments, even down to several euros or cent payments. The key factor here is that no processing fees are deducted by banks. It did not gain the popularity its inventors had hoped for. However, this could change as this chip is now used as means of age verification at cigarette vending machines, which has been mandatory since January 2007. Furthermore, some payment discounts are being offered (e.g. a 10% reduction for public transport fares) when paying with "Geldkarte". The "Geldkarte" payment lacks all security measures, since it does not require the user to enter a PIN or sign a sales slip: the loss of a "Geldkarte" is similar to the loss of a wallet or purse - anyone who finds it can then use their find to pay for their own purchases. Smart card used for health insurance in France. ...


Chile

Chile has an EFTPOS system called Redcompra (Purchase Network) which is currently used in at least 23,000 establishments throughout the country. Goods may be purchased using this system at most supermarkets, retail stores, pubs and restaurants in major urban centers.


Colombia

Colombia has a system called Redeban-Multicolor and Credibanco Visa which are currently used in at least 23,000 establishments throughout the country. Goods may be purchased using this system at most supermarkets, retail stores, pubs and restaurants in major urban centers. Colombian debit cards are Maestro (pin), Visa Electron (pin), Visa Debit (as Credit) and MasterCard-Debit (as Credit).


The Netherlands

In the Netherlands using EFTPOS is known as pinnen (pinning), a term derived from the use of a Personal Identification Number. PINs are also used for ATM transactions, and the term is used interchangeably by many people, although it was introduced as a marketing brand for EFTPOS. The system was launched in 1987, and currently has 166,375 terminals throughout the country, including mobile terminals used by delivery services and on markets. All banks offer a debit card suitable for EFTPOS with current accounts. PINs are most often used for ATMs but are increasingly used at the Point of sale, especially for debit cards. ... Cash machine redirects here. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...


PIN transactions are usually free to the customer, but the retailer is charged per-transaction and monthly fees. Equens, an association with all major banks as its members, runs the system, and until August 2005 also charged for it. Responding to allegations of monopoly abuse, it has handed over contractual responsibilities to its member banks, who now offer competing contracts. Interpay, a legal predecessor of Equens, was fined EUR 47 million in 2004, but the fine was later dropped, and a related fine for banks was lowered from EUR 17 to €14 million. Per-transaction fees are between 5-10 eurocents, depending on volume.


Credit cards use in the Netherlands is very low, and most credit cards cannot be used with EFTPOS, or charge very high fees to the customer. Furthermore, debit cards can be used in the entire EU for EFTPOS, and most debit cards are Cirrus cards. Cirrus is a worldwide interbank network. ...


United States

In the US, EFTPOS is universally referred to simply as debit. The same interbank networks that operate the ATM network also operate the POS network. Most interbank networks, such as Pulse, NYCE, MAC, Tyme, SHAZAM, STAR, etc. are regional and do not overlap, however, most ATM/POS networks have agreements to accept each other's cards. This means that cards issued by one network will typically work anywhere they accept ATM/POS cards for payment. For example, a NYCE card will work at a Pulse POS terminal or ATM, and vice versa. Many debit cards in the United States are issued with a Visa or MasterCard logo allowing use of their signature-based networks. For other uses of terms redirecting here, see US (disambiguation), USA (disambiguation), and United States (disambiguation) Motto In God We Trust(since 1956) (From Many, One; Latin, traditional) Anthem The Star-Spangled Banner Capital Washington, D.C. Largest city New York City National language English (de facto)1 Demonym American... An interbank network, also known as an ATM consortium or ATM network, is a network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks. ... Cash machine redirects here. ... An interbank network, also known as an ATM consortium or ATM network, is a network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks. ... PULSE is an interbank network and EFT association purchased by Discover Card in 2005. ... NYCE is an interbank network connecting the ATMs of various financial institutions in the United States and Canada. ... STAR is an interbank network and EFTPOS network in the United States. ... TYME (Take Your Money Everywhere) is an ATM/interbank network in Wisconsin and the Upper Peninsula of Michigan. ... SHAZAM is an interbank network providing electronic funds transfer services to more than 1600 financial institutions in 29 US states, primarily in the midwestern United States. ... STAR is an interbank network and EFTPOS network in the United States. ...


The liability of a US debit card user in case of loss or theft is up to 50 USD if the loss or theft is reported to the issuing bank in two business days after the customer notices the loss. [12]


FSA, HRA, and HSA debit cards

Main article: FSA debit card

A small but growing segment of the debit card business in the U.S. involves access to tax-favored spending accounts such as flexible spending accounts (FSA), health reimbursement accounts (HRA), and health savings accounts (HSA). Most of these debit cards are for medical expenses, though a few are also issued for dependent care and transportation expenses. An FSA Debit Card is a special type of debit card issued in the United States to access tax-favored spending accounts such as flexible spending accounts (FSA) and health reimbursement accounts (HRA), and sometimes health savings accounts (HSA) as well. ... A flexible spending account (FSA) is a tax-advantaged financial account set up through the cafeteria plan of an employer in the United States. ... This article or section is in need of attention from an expert on the subject. ... A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). ...


Traditionally, FSAs (the oldest of these accounts) were accessed only through claims for reimbursement after incurring, and often paying, an out-of-pocket expense; this often happens after the funds have already been deducted from the employee's paycheck. (FSAs are usually funded by payroll deduction.) The only method permitted by the Internal Revenue Service (IRS) to avoid this "double-dipping" for medical FSAs and HRAs is through accurate and auditable reporting on the tax return. Statements on the debit card that say "for medical uses only" are invalid for several reasons: (1) The merchant and issuing banks have no way of quickly determining whether the entire purchase qualifies for the customer's type of tax benefit; (2) the customer also has no quick way of knowing; often has mixed purchases by necessity or convenience; and can easily make mistakes; (3) extra contractual clauses between the customer and issuing bank would cross-over into the payment processing standards, creating additional confusion (for example if a customer was penalized for accidentally purchasing a non-qualifying item, it would undercut the potential savings advantages of the account). Therefore, using the card exclusively for qualifying purchases may be convenient for the customer, but it has nothing to do with how the card can actually be used. If the bank rejects a transaction, for instance, because it is not at a recognized drug store, then it would be causing harm and confusion to the cardholder. In the United States, not all medical service or supply stores are capable of providing the correct information so an FSA debit card issuer can honor every transaction-if rejected or documentation is not deemed enough to satisfy regulations, cardholders may have to send in forms manually. Seal of the Internal Revenue Service Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        IRS redirects here. ...


Japan

In Japan people usually use their cash cards (キャッシュカード kyasshu kādo?), originally intended only for use with cash machines, as debit cards. The debit functionality of these cards is usually referred to as J-Debit (ジェイデビット Jeidebitto?), and only cash cards from certain banks can be used. A cash card has the same size as a VISA/MasterCard. As identification, the user will have to enter his or her four-digit PIN when paying. Unlike other debit card services, J-Debit is only available during certain times of the day[citation needed]. J-Debit was started in Japan on March 6, 2000. is the 65th day of the year (66th in leap years) in the Gregorian calendar. ... Year 2000 (MM) was a leap year starting on Saturday. ...


Suruga Bank began service of Japan's first Visa Debit in 2006. Ebank will start service of Visa Debit by the end of 2007.[9] This article is about the former Delta debit card now issued under the VISA brand in the United Kingdom. ...


Russia

With the exception of VISA and Master Card, there are some local payment system based in general on Smart Card technology. Smart card used for health insurance in France. ...

  • Sbercard. This payment system was created by Sberbank around 1995-1996. It uses BGS Smartcard Systems AG smart card technology i.e. DUET. Sberbank was a single retail bank in USSR before 1990. De facto this is a payment system of the SberBank.
  • Zolotaya Korona. This card brand was created in 1994. Zolotay Korona is based on CFT technology.
  • STB Card. This card uses the classic magnetic stripe technology. It almost fully collapsed after 1998 (GKO crisis) with STB bank failure.
  • Union Card. The card also uses the classic magnetic stripe technology. This card brand is on the decline. These accounts are being reissued as Visa or MasterCard accounts.

Nearly every transaction, regardless of brand or system, is processed as an immediate debit transaction. Non-debit transactions within these systems have spending limits that are strictly limited when compared to typical Visa or MasterCard accounts. Sbercard ((Russian: ), is national Russias interbank network. ... Sberbank is the largest bank in the Russian Federation. ... State motto (Russian): Пролетарии всех стран, соединяйтесь! (Transliterated: Proletarii vsekh stran, soedinyaytes!) (Translated: Workers of the world, unite!) Capital Moscow Official language None; Russian (de facto) Government Federation of Soviet republics Area  - Total  - % water 1st before collapse 22,402,200 km² Approx. ... Zolotaya Korona ((Russian: ), is inter-regional interbank network. ...


Singapore

Singapore's debit service is managed by Network for Electronic Transfers (NETS), founded by Singapore’s leading banks, DBS, Keppel Bank, OCBC, OUB, POSB, Tat Lee Bank and UOB in 1985 as a result of a need for a centralised e-Payment operator.


Philippines

The Philippines has three local providers of debit service: Expressnet, BancNet, and Megalink. Expressnet is an interbank network connecting the ATM networks of seven major banks in the Philippines. ... BancNet is an interbank network connecting the ATM networks of thirty-four banks in the Philippines. ... MegaLink is an interbank network connecting the ATM networks of twenty-three major banks in the Philippines. ...


Express Payment System or EPS was the pioneer provider, having launched the service in 1987 on behalf of the Bank of the Philippine Islands. The EPS service has subsequently been extended in late 2005 to include the other Expressnet members: Banco de Oro and Land Bank of the Philippines. They currently operate 10,000 terminals for their cardholders. The Express Payment System, more commonly known as the EPS, is the EFTPOS system originally of the ATM cards of Bank of the Philippine Islands and its subsidiaries, BPI Family Savings Bank and BPI Direct Savings Bank. ... The Bank of the Philippine Islands or BPI (PSE: BPI) is the oldest bank in the Philippines still in operation and is the third largest bank in the country in terms of assets. ... Banco de Oro Universal Bank (PSE: BDO), commonly known as Banco de Oro, BDO, or sometimes BDO Unibank, is one of the largest banks in the Philippines, ranking fifth in terms of assets. ... Land Bank of The Philippines, also known as LBP, is a government owned bank focused on the rural markets. ...


Megalink launched Paylink EFTPOS system in 1993. Terminal services are provided by Equitable Card Network on behalf of the consortium. Service is available in 2,000 terminals, mostly in Metro Manila. MegaLink is an interbank network connecting the ATM networks of twenty-three major banks in the Philippines. ... For the capital city of the Philippines, see Manila. ...


BancNet introduced their Point of sale System in 1994 as the first consortium-operated EFTPOS service in the country. The service is available in over 1,400 locations throughout the Philippines, including second and third-class municipalities. In 2005, BancNet signed a Memorandum of Agreement to serve as the local gateway for China UnionPay, the sole ATM switch in the People's Republic of China. This will allow the estimated 1.0 billion Chinese ATM cardholders to use the BancNet ATMs and the EFTPOS in all SM Supermalls. BancNet is an interbank network connecting the ATM networks of thirty-four banks in the Philippines. ... The BancNet (BN) Point-Of-Sale System is a local PIN-based electronic funds transfer (EFTPOS) payments solution operated by BancNet on behalf of the member banks and China UnionPay (CUP). ... China UnionPay (Simplified Chinese: ), also known as UnionPay (Chinese: 银联) or by its abbreviation, CUP, is the only credit card organization in the Peoples Republic of China (PRC). ... SM may refer to: Stephen Malkmus, member of indie-rock band Pavement Stepmania, a game much like DDR Sadism and masochism, sometimes also written as S&M. Sales and Marketing Sam & Max, cartoon characters that have appeared in various media Sailor Moon, a popular Japanese cartoon. ...


VISA debit cards are issued by Equitable PCI Bank (Fasteller), Union Bank (VISA e-Wallet) and Chinatrust Bank. Union Bank also issues VISA Electron cards which can be used for internet purchases. MasterCard debit cards, also known as MasterCard PayPass cards are issued by Banco de Oro. MasterCard Electronic cards are issued by BPI (Express Cash) and Security Bank. All VISA and MasterCard based debit cards in the Philippines are non-embossed and are marked either for "Electronic Use Only" (VISA/MasterCard) or "Valid only where MasterCard Electronic is Accepted" (MasterCard Electronic) Equitable PCI Bank (PSE: EPCI) was one of the largest banks in the Philippines, being the third-largest bank in terms of assets. ... Union Bank is located in Karachi, Sindh, Pakistan. ... Banco de Oro Universal Bank (PSE: BDO), commonly known as Banco de Oro, BDO, or sometimes BDO Unibank, is one of the largest banks in the Philippines, ranking fifth in terms of assets. ...


India

The debit card has limited popularity in India as the merchant is charged for each transaction. The debit card therefore is mostly used for ATM transactions. Most of the banks issue VISA debit cards, while some banks (like SBI) issue Maestro cards. The debit card transactions are routed through the VISA or MasterCard networks rather than directly via the issuing bank. Cash machine redirects here. ... “VISA” redirects here. ... SBI SBI or SiteBuildIt is a website building & optimization tool. ... Look up Maestro, maestro in Wiktionary, the free dictionary. ... “VISA” redirects here. ... MasterCard Worldwide (NYSE: MA) is a multinational corporation based in Purchase, NY in the United States. ...


Advantages and Disadvantages

Debit and check cards, as they have become widespread, have revealed numerous advantages and disadvantages to the consumer and retailer alike. Advantages are as follows (most of them applying only to a some countries, but the countries to which they apply are unspecified):

  • A consumer who is not credit worthy and may find it difficult or impossible to obtain a credit card can more easily obtain a debit card, allowing him/her to make plastic transactions.
  • Use of a debit card is limited to the existing funds in the account to which it is linked, thereby preventing the consumer from racking up debt as a result of its use, or being charged interest, late fees, or fees exclusive to credit cards.
  • For most transactions, a check card can be used to avoid check writing altogether. Check cards debit funds from the user's account on the spot, thereby finalizing the transaction at the time of purchase, and bypassing the requirement to pay a credit card bill at a later date, or to write an insecure check containing the account holder's personal information.
  • Like credit cards, debit cards are accepted by merchants with less identification and scrutiny than personal checks, thereby making transactions quicker and less intrusive. Unlike personal checks, merchants generally do not believe that a payment via a debit card may be later dishonored.
  • Unlike a credit card, which charges higher fees and interest rates when a cash advance is obtained, a debit card may be used to obtain cash from an ATM or a PIN-based transaction at no extra charge, other than a foreign ATM fee.

The debit card has many disadvantages as opposed to cash or credit: A late fee, also known as a late fine, is a charge levied against a client by an organization for not returning a rented or borrowed item by its due date. ...

  • Some banks are now charging over-limit fees or non-sufficient funds fees based upon pre-authorizations, and even attempted but refused transactions by the merchant (some of which may not even be known by the client).
  • Many merchants mistakenly believe that amounts owed can be "taken" from a customer's account after a debit card (or number) has been presented, without agreement as to date, payee name, and dollar and cent amount, thus causing penalty fees for overdrafts, over-the-limit, amounts not available causing further rejections or overdrafts, and rejected transactions by some banks.
  • Debit cards offer lower levels of security protection than credit cards [13]. Theft of the users PIN using skimming devices can be accomplished much easier with a PIN input than with a signature-based credit transaction.
  • In many places, laws protect the consumer from fraud a lot less than with a credit card. While the holder of a credit card is legally responsible for only a minimal amount of a fraudulent transaction made with a credit card, which is often waived by the bank, the consumer may be held liable for hundreds of dollars in fraudulent debit transactions. The consumer also has a much shorter time (usually just two days) to report such fraud to the bank in order to be eligible for such a waiver with a debit card[14], whereas with a credit card, this time may be up to 60 days. A thief who obtains or clones a debit card along with its PIN may be able to clean out the consumer's bank account, and the consumer will have no recourse.
  • In the UK and Ireland, among other countries, a consumer who purchases goods or services with a credit card can pursue the credit card issuer if the goods or services are not delivered or are unmerchantable. While they must generally exhaust the process provided by the retailer first, this is not necessary if the retailer has gone out of business. This protection is not provided when using a debit card.
  • When a transaction is made using a credit card, the bank's money is being spent, and therefore, the bank has a vested interest in claiming its money where there is fraud or a dispute. The bank may fight to void the charges of a consumer who is dissatisfied with a purchase, or who has otherwise been treated unfairly by the merchant. But when a debit purchase is made, the consumer has spent his/her own money, and the bank has little if any motivation to collect the funds.
  • For certain types of purchases, such as gasoline, lodging, or car rental, the bank may place a hold on funds much greater than the actual purchase for a fixed period of time [15]. Until the hold is released, any other transactions presented to the account, including checks, may be dishonored, or may be paid at the expense of an overdraft fee if the account lacks any additional funds to pay those items.
  • While debit cards bearing the logo of a major credit card are accepted for virtually all transactions where an equivalent credit card is taken, a major exception is at car rental facilities[16]. Car rental agencies require an actual credit card to be used, or at the very least, will verify the creditworthiness of the renter using a debit card. These companies will deny a rental to anyone who does not fit the requirements, and such a credit check may actually hurt one's credit score.

Petrol redirects here. ... 1. ... Europcar Sixt A car rental, rent-a-car or car hire agency is a company that rents automobiles for short periods of time (ranging from a few hours to a few weeks) for a fee. ... I warn you, Sir! The discourtesy of this bank is beyond all limits. ... A credit score is a numerical expression based on a statistical analysis of a persons credit files, to represent the creditworthiness of that person, which is the likelihood that the person will pay his or her debts in a timely manner. ...

See also

The Association for Payment Clearing Services (APACS) is the UK trade association for payment systems provided by financial institutions. ... Cash machine redirects here. ... This article describes checkout technology. ... This article is about the payment system. ... Coat of arms Pag (Latin Pagus, village, Italian Pago) is an island in northern Adriatic Sea, off the coast of Croatia. ... Electronic funds transfer or EFT refers to the computer-based systems used to perform financial transactions electronically. ... There are very few or no other articles that link to this one. ... An interbank network, also known as an ATM consortium or ATM network, is a network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks. ... Interac Logo Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. ... An inventory information approval system, or IIAS, is a point-of-sale technology used by retailers that accept FSA debit cards, which are issued for use with medical flexible spending accounts (FSAs), health reimbursement accounts (HRAs), and some health savings accounts (HSAs) in the United States. ... This article describes checkout technology. ... An FSA Debit Card is a special type of debit card issued in the United States to access tax-favored spending accounts such as flexible spending accounts (FSA) and health reimbursement accounts (HRA), and sometimes health savings accounts (HSA) as well. ... Laser is the primary debit card system used in the Republic of Ireland. ... Maestro is an international debit card service; a joint venture by MasterCard and Europay International. ... Solo is a debit card produced by Switch Card Services in the UK, specifically for people under 18 or on lower incomes. ... Switch was a debit card used in the United Kingdom. ... This article is about the former Delta debit card now issued under the VISA brand in the United Kingdom. ... Visa Electron logo. ... MasterCard Worldwide (NYSE: MA) is a multinational corporation based in Purchase, NY in the United States. ...

References

  1. ^ Säkra kortbetalningar på Internet | Nordea.se
  2. ^ e-kort
  3. ^ [1] The electronic cash system. Retrieved 2008, 03-21.
  4. ^ [2] CardTrak, December 2004. 29 Days.
  5. ^ Gift Cards - American Express Prepaid Gift Cards
  6. ^ [3] Visa press release, November 2006. Visa Takes A Bite Out Of Small Ticket Payments
  7. ^ [4] APACS. The UK payments association. Retrieved 2007, 06-18.
  8. ^ | MasterCard® Maestro
  9. ^ eBank Money Card - eBank Corporation(Japan)
2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Common Era (or Anno Domini), in accordance with the Gregorian calendar. ... is the 80th day of the year (81st in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) was a common year starting on Monday of the Gregorian calendar in the 21st century. ... is the 169th day of the year (170th in leap years) in the Gregorian calendar. ...

  Results from FactBites:
 
debit card: Definition and Much More from Answers.com (4501 words)
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 authorized by the owner of the card.
Debit cards may also be used by expatriated workers to send money home to their "unbanked" families holding an affiliated debit card.
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.
DEBIT CARDS: BEYOND CASH AND CHECKS (1299 words)
Debit cards are expected to rival cash and checks as a form of payment.
Debit cards may be more readily accepted by merchants than checks, especially in other states or countries wherever your card brand is accepted.
Using a debit card may mean you have less protection than with a credit card purchase for items which are never delivered, are defective, or were misrepresented.
  More results at FactBites »

 
 

COMMENTARY     


Share your thoughts, questions and commentary here
Your name
Your comments

Want to know more?
Search encyclopedia, statistics and forums:

 


Press Releases |  Feeds | Contact
The Wikipedia article included on this page is licensed under the GFDL.
Images may be subject to relevant owners' copyright.
All other elements are (c) copyright NationMaster.com 2003-5. All Rights Reserved.
Usage implies agreement with terms, 1022, m