Debit cards - Freedom of transaction without debt trap risk - By: Ellis Thompson

The concept of plastic card has totally revolutionized the financial transaction scenario in all parts of the world. These cards are small, light weight and portable which fit into wallets or handbags. So, the burden of carrying cash has gone. These cards come in three types that are, credit card, debit card and prepaid card. These help in cashless transaction with high security provide by advanced communication technology and computerized systems.

Plastic money has replaced the traditional notes and coins in a big way. This kind of money has gained worldwide acceptability and popularity because of the flexibility and convenience it offers to the account holder. Under this system, a user can perform transactions of as much as he or she likes, in every part of the world. The universal feature of the plastic money technology has vastly eased transaction procedure. It is kept in Automatic Teller Machines commonly known as ATMs which can be accessed round the clock 7 days a week. In the present times, there are numerous ATMs in every city of the world. They are located at important places such as commercial hubs, airports, near hotels etc.

One of the cards is the debit card which allows for cash withdrawal from any ATM anywhere. These cards allow for transaction as per one’s account balance. The transaction so carried is secured and safe with the use of very advanced communication technology. These cards can be swiped for payment at public locations anywhere; however, precaution should be taken regarding the place of transaction. Transaction or swipe should only be carried at secured and reputed places like star hotels, malls and like that. User should avoid using them at less secure commercial places such as at petrol pumps or gas stations.

Second is the credit card, which empowers the account holder with no bar. He or she can shop, travel or spend any amount. The transaction is not bound by the amount of money in the user’s bank account. This is kind of a borrowing in which the user can go beyond the limitation of account money. The money so exceeded is paid by the credit service company. However, the user has to return the amount with interest to the bank at the end of the month. The user is notified each and every time a transaction is committed in the form of e-statements by the bank.
Third is the prepaid card, which is totally different from the previous two. It offers an altogether different advantage as it is pre-loaded with specific amount and each time a transaction is committed, the specific amount is detected from the loaded amount. These cards are rechargeable unlike the other two and prevent from debt trap.

About the Author

I am the webmaster of http://www.credocard.com/- Credocard is the industry leader for co-branded prepaid card programs, white label programs, software and payment integration platforms and turnkey payment solutions. We provide services like debit card, credit card etc.

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