Working of Debit Cards

The working of debit cards is similar to that of credit cards in many ways. Debit cards allow the card holders to pay for their purchases directly from their account instead of paying in cash. Debit cards are also called as check cards or bank cards because the amount for which purchases are made is directly withdrawn in an electronic transfer from the account of the card holder.

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Online Debit System

Online debit system is one of the ways in which debit card payments are processed. An electronic authorization is required in any debit card transaction that is carried out through the online debit system. Once the authorization has been sought, the amount which is paid is immediately reflected in the account of the card holder.

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Offline Debit System

Offline debit system is another mode of payment through which debit card transactions are processed. Also known as signature debit, the major difference present between online and offline debit systems is the fact that the customer does not have to enter the personal identification number while using an offline payment channel.

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Other Debit Card Systems

There are two other debit card payments systems that are used for payment processing apart from the online and offline debit systems; the electronic purse card system and the prepaid debit card system.

Electronic Purse Card System

Electronic purse card system is yet another payment system which is

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