Debit cards are a unique system to negotiate cash in the current market. They replace the credit cards which have an interest – debt on the usage and limit the user to the exact amount of money contained in his account. Nowadays, the bank account holder has a debit (ATM) card. People use them conveniently, but there are still some people who do not have much information about these cards.
Do you know, the bank account details can be easily obtained by the digits given on their debit card? They are not just some numbers written on both sides of the debit card. The swipe at machine deducts the amount from our account, it works? What is the meaning of the 16 digit number on the card?
What is Debit Card?
A Debit card is an electronic payment card used to collect and perform financial transactions of its cardholder (user). The cardholder is free to utilize it until its day of expiration provided he/she maintains a balance in his or her Bank account.
From a business perspective, a Debit card is a suitable alternative to cash payments. Debit cards overcome the need to carry cash or cheques to make purchases and increased cashless payments methods.
How Debit Card used?
Debit cards help a dual purpose: They allow the user to withdraw money from his or her account through an ATM or through the cash-back function many merchants offer at the point of sale. Also, they provide the user to make purchases.
ATM cards, by contrast, only allow the user to withdraw money from an ATM, while credit cards only allow purchases, whereas Debit cards are used for both the purposes.
What is the significance of 16 digit number on Debit Card?
The front side of the debit card has 16 digits code is written. These 16 digits code is divided into 3 parts.
- The first 6 digits on the Card are Bank Identification Number.
- The next 9 digits are Unique Account Number of the Cardholder.
- The last 1 digit is Check digit for validation of the card.
Even the Global Hologram imprinted on the debit card is for security purpose, which is very hard to copy. It is three dimensional.
The date and year of expiry are also printed on the debit card so that the cardholder can remember that after this date, the debit card will not work.
- The first digit of Debit Card:
The first number/digit reveals the industry, which has issued the card. Known as the Major Industry Identifier (MII) like the Banks, Petroleum, etc. It is different for different industries.
Industries that roll out the Major Industry Identifier(MII) code?
- ISO and other industries
- Airline companies
- Travel and entertainment (American Express or Food Club)
- Banking and Finance (VISA and MasterCard )
- Banking and Merchandising
- Telecommunications and other industries
- National Assignments
The digit values represent the category of an issuer:
- 0 – ISO and industry assignments
- 1&2 – Airline cards
- 3 – Travel and Entertainment for example Amex
- 4&5 – Banking and Financial for example Visa, Mastercard
- 6 – Merchandising and Banking for example Discover, Diners Club
- 7 – Petroleum & Oil
- 8 – Telecom
- 9 – For Assignments by National Standards Bodies
2. The meaning of the first 6 digits (Issuer ID):
The first 6 digits of a debit card tell us about the company which has issued the card. Known as the Issuer Identification Number (IIN).
Company’s Issuer Identification Number (IIN):
MasterCard = 5XXXXX
VISA = 4XXXXX
Although all Visa cards start with the number 4, the next 5 digits indicate which bank issued the Visa card. Mastercards begin with 5; Discover starts with 6.
3. The next 7 numbers, which is from 7th to the 15th digit:
The 7th digit to the 15th digit, leaving the last digit, is linked to your bank account number. But these numbers do not reveal anything about you and your bank account. It is only issued by the card provider and is kept unique. It is a unique number that identifies your account.
4. The last digit of the debit card:
The last number of the debit card is known as a Check Digit. From this digit, it can be inferred whether the card is valid or not.
This individual digit is one of the most important ones on the card. The sole objective of this digit is to allow validation of the rest of the number. In other words, there is a mathematical connection between the numbers on the card, so if the number is entered incorrectly, the card validator system can indicate the card number was entered incorrectly. It is only intended to verify that the card number was not accidentally typed in the wrong when making phone or online payments.
The check digit is used to verify card numbers for accuracy because it is calculated according to a public domain formula called the Luhn algorithm.
5. CVV Code:
At the time of Online Shopping and or paying bills online, a CVV number is required so that the transaction can be completed accurately and securely. A CVV is the 3 digit number, which is printed at the backside of the card.
A Card Verification Value (CVV) is a combination of features used to establish the owner’s identity and minimize the risk of fraud. To calculate the code, the bank uses a particular algorithm.
So each digit on a debit card number is essential for validation, security, and identification during the payment processing.
What is the difference between the Credit Card and Debit Card and ATM Card?
Debit cards require users to pay now, as the card uses money directly from your checking account for purchases or money withdrawals from ATMs.
Credit cards allow you to pay for your purchases later. You are essentially borrowing money from the credit card issuer with the understanding that you can pay the money back at the end of your statement period.
A standard ATM card is used exclusively for withdrawing cash from a machine.
How can you get a Debit Card?
Most banks and credit unions give you a free debit card when you open a bank account. After 15 days, your first time ATM PIN(Personal Identification Number) will arrive. Activate it by following the instructions given to you by the bank and set up your new PIN for ATM use and purchases.
Remember the first transaction is to be made from the same Bank ATM.
What is a Personal Identification Number (PIN)?
PIN is a four-digit unique number of your debit card through which you can access your cash and can make any transaction through your ATM. Do remember to keep your PIN safe and confidential and also do not share it with anybody.
Do Debit Cards charge fees?
Debit card transactions are not always free. Cash withdrawals from the same bank’s ATM are free of charge. But some bank charges nominal fees after five transactions made from your bank’s ATM.
What is the withdrawal limit on Debit Card?
On daily cash withdrawals, there are limits, and it depends upon the type of debit card you hold. You can withdraw from Rs 15,000 to 2 lakh or even higher, depending upon the type of card you are using. For premium cards withdrawal limit of cash and point-of-sales limits are higher.
When Debit Card is lost or misplaced, what immediate action is to be taken?
Contact Toll-free helpline number and inform about the loss of card and make a request to BLOCK the card and stop the operations of the card on the network.
Please note to take ticket number from the Contact Centre.
In case customers are not able to contact, you can approach any branch of the same Bank. Inform the card-issuing branch immediately telephonically about the loss of card followed by written request to BLOCK the card
- Debit cards eliminate the need to carry cash or physical checks to make purchases, but these cards can also be used at ATMs to withdraw cash.
- Debit cards usually have daily purchase limits, meaning it may not be possible to make an unusually large purchase with a debit card.
- Debit card purchases can usually be made with or without a personal identification number (PIN).
- Debit card purchases are easy to monitor, and no loss of track on spending, unlike using a credit card, as the money comes directly out of a checking account.
- Some debit cards also offer reward programs, similar to credit card reward programs, such as 1% back on all purchases.
We have cleared all the details about Debit cards and its significance, If you found something missing here, please share your valuable thoughts here in below comments section.