Debit card in English is a type of ATM card issued by banks, for payment at points using pos machines to swipe cards such as shopping malls, supermarkets, or places that accept payment. Debit cards can also withdraw money at ATMs with the existing balance in your account. Find out more details with Chiasevaytien through the article below.

Viewing: What is a debit card

What is a debit card

What is a debit card?

Debit card is also known as Debit Card. Made from plastic material and is an ATM card issued by banks

A special feature of a debit card is that you have to load money into your debit card before you can spend or pay or withdraw money. Each debit card is associated with only one account. The payment amount must be at least 50,000 VND less than the amount in the card. Therefore, a debit card is also known as a payment card. In addition to the payment function, the debit card still has all the functions of a normal ATM card such as transferring money, withdrawing money, printing statements, ..

Currently, Debit cards are popular with two types of cards:

Domestic Debit Card: There is scope for use within the country, usually free of charge (depending on the policy of each bank). International debit cards: Debit cards include the following types of cards: Visa debit, Master card debit, JBC debit… These cards are usable in all countries and charge a fee when converting foreign currencies. .

Whether it is a domestic debit card or an international debit card, customers are only allowed to spend within the card’s limit

Part 2

Functions of a debit card

Today, many people use debit cards but do not know all the functions or benefits of debit cards:

2.1 Debit Card Function

Cash withdrawal : Customers can easily withdraw cash at all ATMs , of debit cards that support Transfer : Easily transfer money to other accounts as well as regular ATM accounts Balance inquiry : Quickly query transactions, as well as statements Bill payment : You can use your debit card to pay utility bills, internet, etc. Quick withdrawal (from main account) Withdrawal money at another bank’s POS machine (bank branch only) Online payment

2.2. Benefits of Debit Card

High security: When using a debit card with any transaction, you need a password that only the cardholder has the right to know. So if you accidentally lose your card, you don’t need to worry too much about the problem that the crooks will steal the money in your account.

– Save maximum time: With today’s modern times, it is reasonable for people to limit payments using cash. No need to waste time looking for money to pay or return, but only need 1 card, you can already own what you need.

Safe when you do not have to carry a lot of cash: When you carry a lot of cash, it will be very difficult to preserve them without loss or wear. With just a Debit card, you can carry all the money you have and can pay anywhere.

– Earn interest from money in Debit card account: Currently, most banks apply demand interest rate for deposits in Debit card.

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Part 3

Distinguish between debit and credit cards

To help you distinguish between a debit card and a credit card, let’s take a look at some credit card information.

What is a credit card

Credit cards are also known as Credit Cards. This is a bank card that allows customers to spend first and pay later. In other words, the bank is lending you a sum of money and by the due date you have to pay it back to the bank. And when you are approved by your bank to open a card, you will be given a limit. And only allowed to spend within that limit. You can use the card in the following cases: Online shopping, payment, Cash withdrawal, Travel payment, especially when you travel abroad, you will not have to worry about currency exchange… All expenses All expenses will be paid by the bank for you

After each time you use your credit card to spend like that, you will have to pay off that loan to the bank on time, Normally it will be 45 days, many banks will allow you to 55, then you interest will not be charged. However, if the expiration date of that loan period is over, you will be counted as an outstanding debt and will be charged interest according to that debt (specified in the contract).

Credit cards, there are also two types of cards

Domestic credit card: is a payment card for domestic use. The form of using the card is to spend first – pay later. The bank will provide a certain spending limit for the cardholder. The cardholder uses the amount within the limit to pay for his or her transaction and returns the amount to the bank at the time shown on the monthly statement. Card limit is determined depending on the financial ability and registration profile of the cardholder. International credit cards : For international credit cards, You can use it to spend both domestically and internationally

See now: Conditions for opening a bank credit card

Compare Debit and Credit Card

To help you better understand these two cards, let’s look at some criteria

Criteria Debit Card Credit Card Card nature – Debit card is a type of card that recharges first and consumes later – Replaces the use of cash – All spending will be deducted directly the amount of money in the account, can be considered almost like an electronic wallet – Credit card is a prepaid card – Card also has the function of replacing cash – All spending will be issued a card by the bank payment and customer is responsible for repaying to the bank after each loan expiration Card limit – Debit card depends on the amount of money deposited by the customer – Credit card depends on the limit set by the bank , depends on the customer’s income Card function – Cash withdrawal – Transfer – Balance inquiry – Bill payment – Quick withdrawal (from main account) – Withdrawal at other bank’s POS machine (only at bank branches) – Online payment – ​​Payment for goods and services… instead of cash – Cash withdrawal – Installment conversion 0-1% interest card conditions Simple, just need ID card/ID card Must have proof of income, stable job, monthly income statement and labor contract or no collateral to open a card Scope of use In and abroad Domestic and international Credit history Unaffected Is an important factor in deciding whether or not you can open a card. If you have bad debt, you will not be able to open a card Interest fee schedule – Fees are usually very low such as withdrawal fees, annual fees, transfer fees – Other fees such as internet banking, banking service fees will usually be lost depending on the bank – High cash withdrawal fee – Annual fee: high – High interest rate if you pay overdue Incentive program Usually very few almost none Lots of promotions and incentives such as: Accumulate points, redeem, refund cash up to 6%, discount shopping at big supermarkets or e-commerce websites Linked to regular ATM card With link : If you pay by debit card. Then ATM card will usually be automatically deducted No connection Monthly bill No card procedure – Issuance request form and debit card contract – ID card/ID card – 3 month bank statement Most recent – ​​Labor contract – Copy of permanent residence book – Some other documents – ID card/ID card – Bank statement of the last 3 months – Labor contract – Some other documents required by the bank bridge

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Advantages and disadvantages of debit cards

Advantages of Debit Card

– Debit card is considered a card with a simple and fast card opening process, customers only need to have their ID card/ID card, go to the bank branch you want to make a card and follow the instructions.

– Debit card helps you not to be overdrawn in the spending process, helping you to manage spending more easily

– Customers can easily pay domestic and foreign expenses

– When using a debit card, the fee for domestic card cash withdrawal is usually from 1 thousand to 3 thousand, and for a national debit card from 8 thousand to 10 thousand

– The annual fee is also very low and there is no worry of being charged interest when there is no deposit on the card.

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– Customers can easily transfer money to relatives and friends.. without worrying about high fees

– Easily link with prepaid ATM card without going through the step of depositing a debit card

Disadvantage of the debit

– Just like a prepaid card, customers always have to spend depending on the limit and the amount you load into the card

– Low security if bad guys know PIN or CVV

– If you use Debit Card to pay online or register for a service but forget to cancel, money will be deducted directly from your account.

– Very few incentive programs are almost non-existent

Watch now: Should I open a credit card?

Debit card opening conditions

To open a debit card you need to note the following conditions:

Customers must be citizens aged 18 years or older, must be Vietnamese citizens or foreigners living and working in Vietnam. Have all documents: ID card, passport (or household registration book). For foreigners, a valid passport and a letter of introduction from the working agency are required. A bank account is required for the card. For some cards with a different tier, a minimum deposit amount is required.

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Debit card opening procedure

To open a debit card, customers need to have the following documents:

Issuance request form and contract for using debit card (This paper will be issued when customers come to the bank branch to make a card and the staff here will assist you in details) Copy of ID card / ID card, permanent residence book After declaring income for the last 3 months (Usually the bank statement fee will cost 22,000 VND/ 1 statement) Some other documents if required by the bank (Employment contract ..)

How to make a debit card

To make one Your debit card will not take too much time or procedure. You can go directly to the transaction office/bank branch where you want to choose to open an account.

Here we will show you the most convenient and simple way to open a debit card at the nearest transaction office/branch.

Step 1: Go to a bank counter, present your ID card and tell the teller about the need to open a card.

Step 2: Fill in the card opening form according to the regulations of each bank.

Step 3: Wait for the staff to confirm the information, enter the information into the system, the customer waits for the notification from the staff.

Step 4: You will pay card maintenance fee or card issuance fee if any. The teller will print the receipt for you

Step 5: When you make an appointment, a staff member will notify the customer to pick up the debit card

=> After 3-7 days from the date of card opening, the bank will issue the card to the cardholder.

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Debit card fee schedule

Usually, when customers make a card, the fee for making a debit card at the bank is free when making a card, there is also a fee when making a quick card. For quick cards, the issuance fee will be from 50,000 to 200,000 VND

– Annual fee: The annual fee will be quite low, usually from 50,000 VND to 300,000 VND depending on the type of card.

– PIN re-issuance fee: Free or 20,000 VND / 1 time PIN

– Cash withdrawal fee: From 1,000 VND to 3,000 VND

Notes when using a debit card

Be aware of the balance in your account and the amount that can be used. Reasonable calculation of spending with the limit you are authorized. Because if you spend more than the allowed limit, your card will be rejected. Choose a debit card with an extensive network of ATMs to avoid being charged extra fees when withdrawing cash.

Recently we helped you answer the question “What is a debit card?” or how the debit card works. We hope that the information we provide will help you have a smarter way to manage your finances.