Debit Card

Importance: 0.71

Is a company: no

Is a proper noun: no

Synonyms

  • bank card
  • Interac card
  • ATM card
  • payment card

Acronyms

  • DC

Definition of Debit Card

  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

  • Automated Teller Machine (ATM) Acronym, Canada,
    • A terminal activated by a magnetically encoded card that allows customers of a bank or other financial institution to conduct everyday banking tasks such as deposits, withdrawals and transfers between accounts. An interconnection of these terminals allows customers to conduct certain transactions around the nation and the world; usually subject to a surcharge fee.
    See also Automated Banking Machine (ABM).
  • Per Item Charge Definition,
    • A fee charged to account holders who exceed the allowable number of free transactions for their accounts. Or, the balance in an account does not meet the average monthly balance required to waive the fee.
  • Retail Banking Definition,
    • Banking services offered to individual customers such as savings accounts, personal loans, cheque cashing, and RRSPs.
  • ATM Alliance Definition,
    • An alliance between banks and/or credit unions that is designed to avoid or minimize surcharges for non-bank customers at ATM machines. Customers from one bank that belongs to the alliance can use surcharge-free ATMs at all alliance banks.
  • Electronic Funds Transfer (EFT) Acronym, Important,
    • 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.
  • Rebate Card Definition,
    • This is a credit card that allows the customer to accumulate cash, merchandise or services based on card usage.
  • Personal Identification Number (PIN) Acronym, Important,
    • 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.
  • Interac Direct Payment (IDP) Acronym,
    • A method of paying for goods and services electronically with the funds taken immediately and directly from your bank account and transferred directly into the merchant's account. You use your banking card to do this.
  • Electronic Debit Card (EDC)Acronym,
    • Insufficient Funds (ISF) Acronym,
      • 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).
    • Debit Definition,
      • Another name for withdrawal of funds from your account.
    • Smart Card Definition,
      • 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.
    • Air Miles Company,
      • 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.
    • Standard Card Definition,
      • The basic card offered by issuers. Customers with higher incomes and good credit reports can qualify for the higher-limit gold and platinum cards.
    • Foreign Currency Surcharge Definition,
      • A fee charged by a credit card company for purchases made in a foreign currency.
    • Interac Definition,
      • Canada's largest shared network of ATMs. It allows cardholders to access their accounts from any ATM on the network regardless of which financial institution owns the machine.
    • Offline Debit Card Definition,
      • 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.
    • Personal Consumption Spending Definition,
      • What households collectively spend on goods and services.
    • Point of Sale (POS) Acronym,
      • An electronic payment system for retail goods and services, through the use of credit cards or debit cards that directly access and deduct funds from a customer's chequing account. Also known as POS.
      • A location where a sales transaction takes place.
    • Online Debit Card Definition,
      • 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.
    • Co-branded Card Definition,
      • A type of affinity card issued through a partnership or alliance between a bank and another retail company. For instance, a large department store may co-brand a card with a bank. The card would have two brand names on it -- the bank's name and the store's name. Usually, the attraction of the card is special deals with the retail partner. Many -- particularly the ones affiliated with airlines that offer air miles -- are popular enough to command a hefty annual fee.
    • Direct Debit (DD) Acronym, Important,
      • A means of authorizing recurring payments (e.g., mortgage payments, insurance premiums) to be drawn on an account.
    • Expensing Definition,
      • Government tax law allows individuals to expense certain business activities.
    • Debit Bureau Definition,
      • A service used by banks that eventually tracks account opening and closing information, cheque order history, cheque writing history, any history of collection activity on unpaid accounts, frequency of debit and ATM card use and household demographics. Under the system, when a consumer gives a cheque to a participating retailer, the individual's account is identified by punching a code into a computer or swiping a card containing a magnetic strip or microchip through an electronic reader, which tells the retailer whether to accept or reject the transaction.
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