What is a Debit card – Troubleinthepeace


There are many types of bank cards issued such as debit cards, credit cards, MasterCard, prepaid cards, points cards, etc. In which, debit and credit cards are the two most popular and used cards today. Have you really differentiated between a credit card and a debit card? How to use a credit card, what are the features of these cards? In the following article, Timo will help you understand and distinguish what is a debit card?

What is a debit card? (Debit Card)

What is a debit card? Debit card, also known as Debit Card, is one of the basic card products of banks. Debit cards are considered the most popular form of cash alternative today. The card is linked to a bank account. How much money is in the card, you can use as much, can not use more than you have. This form is different from make a credit card is to spend first and then pay later, you need to understand clearly to avoid confusion.

Debit card feature

Debit card to withdraw money at all ATMs quickly and easilyDebit card has the feature of linking with e-wallets, online ordering applicationsPaying on mobile devices: Momo Wallet, Zalo Wallet Pay, Moca Wallet, etc. Pay bills online quickly, easily and securely with an intebanking registered debit cardTransfer money between banks 24/7 at ATMs and money transfer apps…

However, to use more features of your debit card, you can register for InteBanking. Learn more What is Internet Banking? How to register for InteBanking.

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What are the types of debit cards?

Domestic debit card

Domestic debit card has a domestic use. You can use this card to pay when shopping, dining, shopping online, etc., provided that these services must be in the country. Depending on your bank, you may have to pay a fee to use your domestic debit card, but it’s usually free.

International Debit Card

International Debit Card has the same usage as a domestic debit card but has a global reach. There are cards like MasterCard Debit, Visa Debit, JCB Debit, etc. Usually will be charged a certain fee when used.

Whether it is a domestic debit card or an international debit card, you can only use it when there is money in the card account. And you must not use more than the amount that the card has. Some banks also require the card to have a minimum balance of 50,000 VND (only Timo does not require this balance). Opening a debit card is quite easy, banks support quick debit card opening. In which, the condition to open a card is only being a citizen over 18 is accepted. Some banks charge a fee for card issuance besides those that give free cards and add money to new accounts like Timo (This amount can be withdrawn 100% completely free of charge).

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Find out what a debit card is with Timo?

Features of Debit Card

A physical debit card is made of plastic, which is issued by your bank after you request a debit card. The basic features of today’s popular debit cards:

Debit card number: A sequence of 16 digits printed on the card Customer Name: Your name will be on the card for personal use. Debit card validity period: Each debit card has a time limit. use. Usually this time is 8 years, expired card will not be able to make further transactions. At this point, you need to go to the bank to renew. Debit card account number: This is the series of bank account numbers that are main linked to the debit card. Note: The bank account number is different from the debit card number printed on the card. CVV/CCS number: 3 digits on the back of the card

Debit card limit

Debit cards when transacting through channels will have different limits

Withdrawal limitDebit card withdrawal limit via ATM/CDM: Normally, withdrawal limit at ATM/CDM is 20,000,000vnd/transaction and 100,000,000vnd/day. With Vietcombank, the withdrawal limit is limited to 5,000,000vnd/transaction and maximum 50,000,000vnd/dayDebit card withdrawal limit at transaction counters: With banks like Timo, Viet Capital Bank,… You can withdraw up to the amount of money on your debit card. However, for Vietcombank, the maximum withdrawal limit is only 40,000,000 VND. Interbank money transfer limit

Each bank will stipulate a different limit for interbank money transfer. At Timo Digital Bank, the limit for inter-bank money transfer via the Timo app on your phone is 500,000,000 VND/day for you to freely make transactions.

What is a credit card? (Credit Card)

Credit card, also known as Credit Card, is issued by the bank with the conditions of opening a Visa/Mastercard card different. Based on creditworthiness and personal credit information, after making a credit card you are granted a different credit card limit. The main function of a credit card is still to pay bills and services. After understanding what a debit card is, you will realize the difference between a debit card and a credit card. Opening a credit card allows you to use first, pay later. That is, the bank stands out for you to “loan” a sum of money, you can use this money to pay for services, shopping, travel, resort, online shopping, buying airline tickets, etc. domestically and internationally. However, users need to pay attention to the credit card limit during use so as not to be penalized for overusing the credit card limit. Not only that, but your credit limit also affects your credit score.

You are then obliged to repay the borrowed amount to the bank within the specified time. If you pay the loan amount in full before the due date, you will not be charged interest. Usually 45 days, depending on the bank’s policy can be up to 55 days. If payment is made after the payment due date, the outstanding balance (debt balance) will be charged a late payment interest rate according to the original regulations when opening a credit card. Note: credit cards also have the function of withdrawing cash at ATM systems, but it is recommended to limit them. Because in addition to the high withdrawal fee (up to 4% of the amount and interest is charged immediately), the interest rate for the cash I have withdrawn is also quite high. You need to know this to avoid losing money unjustly.

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The card is issued in 2 forms: domestic credit card and International credit card.

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Although similar in function, these two cards are different in terms of benefits and scope of use:

Domestic credit card: when opening a credit card of this type, you will enjoy incentives from domestic brands as well as commercial centers, the scope of card use is limited to the domestic scope.International credit card: including Visa Credit card, Mastercard Credit card, … can be used at home and abroad, incentives are enjoyed from brands, brands as well as commercial centers on a global scale. However, when using it abroad, you will be charged an additional foreign currency conversion fee of 2% – 4%.

Conditions for opening a credit card depend on the policies and requirements of each bank. Most banks require you to verify your finances to ensure payment of consumer bills from new credit cards that accept card openings for you, but Timo will not require complicated procedures. this.

In addition, opening a credit card gives you special incentives when paying for services. You will receive incentives from a network of partners associated with card issuers in services such as dining, entertainment, travel, shopping, health care, beauty,… Not only that. , making a credit card also has the function of accumulating points, exchanging gifts and refunding when spending.

Understanding how to use a credit card in detail will help you have an overview and take advantage of the features a credit card has to offer. Some basic ways to use credit cards are online payment, payment at the counter, etc.

Differentiate between credit and debit cards

Credit card or Credit Card allows you to pay in advance, pay later, meaning you don’t need to be able to pay money in the card. It is your responsibility to return the money in full to the bank and to be charged interest for late payments

Debit card or Debit Card is a payment card linked to a bank account, you need to load money into your debit card to use payment services or withdraw cash from ATMs. Usage limit must be less than or equal to the amount loaded on the debit card.

Should I open a debit card or a credit card?

Debit and credit cards are used for different objects and purposes. Understanding the characteristics of each card helps you to use it properly, optimize your financial benefits and make the decision whether to make a credit or debit card to serve your needs.

When should a debit card be made?

Debit cards meet all your payment, withdrawal or transfer needs. So if you have enough income to cover the needs of life, you should use a debit card.

Low cash withdrawal fees are an outstanding advantage of debit cards over credit cards. With a debit card, you will have a very low fee when withdrawing money at ATMs inside and outside the system. If you open a credit card, you will be charged 4% of the total withdrawal plus the same high interest rate as a personal loan. So, if you regularly withdraw cash, you should get a debit card.

TOP banks making the most popular debit cards in 2021

Timo Digital Bank debit card Card type: Timo debit card Outstanding utility: Integrating convenient services such as transfer, cash withdrawal, online bill payment or at points with POS machines, connecting e-wallets popular as Momo, Moca, ZaloPay, AirPay, etc. Timo debit card is completely free of ATM withdrawal services at 17,000 ATMs nationwide, free of card opening fee, maintenance fee and payment fee nationwide. Viet Capital Bank Debit Card Card Type: E-Plus Debit Card Viet Capital Bank Debit Card Utilities: Transfer money, withdraw cash from ATM card, balance inquiry, pay bills, transfer money phone money via InteBanking, Mobi Banking or quickly shoot phone money through Momo, Zalo Pay, … Vietcombank debit card Vietcombank domestic debit card, Vietcombank international debit card: Platinum Vietcombank debit card , Vietcombank Connect 24 Visa Debit Card, Vietcombank MasterCard Debit Card, Vietcombank Linked International Debit Card…Sacombank Debit CardDebit Card Domestic Napas Sacombank, Sacombank Visa Debit card, Sacombank MasterCard Debit card, Sacombank UnionPay card,…

When should I open a credit card? Solution to open credit card online

Credit cards are suitable for people with stable income. If you have a steady monthly income and want to have an effective reserve fund, you should open a credit card.

In addition to going to the bank to do the procedures to open a credit card. Now, to meet the needs of customers, many banks allow opening credit cards online. Opening a credit card online also involves some of the same steps as opening a traditional credit card. However, the outstanding advantage of opening a credit card online is that you can actively arrange your time to suit your work.

Hopefully with the above information, you have been able to understand what a credit card is, a debit card, as well as its functions when owning these bank cards. Find out more information on how to apply for a Timo Debit card and a Timo Visa card here.

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Live smarter, more quality with Timo. Registration go wait! For more information, please contact the toll-free hotline 1800 6788.

Timo Debit Card – Simple procedure, free of most fees

Free card making, money transfer inside and outside the bank, additional service fees Free withdrawals at more than 16,000 ATMs nationwide The card is secure and safe, 24/7 card management via the very simple Timo app

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