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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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62% - Often

Debit Card


Synonyms:ATM card, Interac card, bank card, payment card
Acronyms &
abbreviations:
DC
Filed Under: financial-banking
Tags: debit cards
 

Definition of debit card (DC)

debit card (DC)
1. A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number (PIN) while other cards require the customer's signature. A PIN-based or direct debit card removes a purchase amount from a customer's bank account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase amount from a customer's bank account in two or three days.

Related Terms and Acronyms:

  • Air Miles   One of the most popular rewards issued by airline-affiliated co-branded cards. Air miles are earned with every use of the card, and then transferred monthly to the cardholder's account with that airline.
  • direct debit (DD)   A means of authorizing recurring payments (e.g., mortgage payments, insurance premiums) to be drawn on an account.
  • electronic funds transfer (EFT)   The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.
      ➥  Also known as e-Transfer.
  • insufficient funds (ISF)   When funds are not enough to satisfy the payment of a cheque or draft made on that account; also known as non-sufficient funds (NSF).
  • offline debit card   A card with traits from both ATM cards and credit cards (usually VISA or MasterCard). Banks issue this type of card either instead of or in addition to an ATM card. The card can be used anywhere the VISA or MasterCard logo is displayed, but a line of credit is not accessed -- the customer's chequing account is debited. It is "offline" because the account is not directly accessed -- there is a delay of 24 to 72 hours before the debit is made in the account. If you sign a slip of paper to complete the transaction, it is offline. In the Canada, a Personal Identification Number (PIN) may be required to use an offline debit card.
  • online debit card   A method of payment in the form of a card that immediately deducts funds from a person's bank account when used. The card may have a VISA or MasterCard logo on it, or just the name of the bank that issued the card, similar to an ATM card.
  • personal consumption spending   What households collectively spend on goods and services.
  • personal identification number (PIN)   A unique, confidential number or pass code, usually consisting of four to six digits, entered by a customer when using an Automated Teller Machine (ATM) or Interac Direct Payment, that gives the customer access to his or her account.
  • smart card   A card with an embedded computer chip which stores more information, performs more functions and is more secure than a credit card or debit card.
  • standard card   The basic card offered by issuers. Customers with higher incomes and good credit reports can qualify for the higher-limit gold and platinum cards.

More Related Terms and Acronyms

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