Tuesday, 15 March 2011

Debit Card Definition

A debit card is a plastic card that resembles a credit card. Using a debit card a customer can withdraw funds on deposit in the customer's account using an ATM (automated teller machine.) A debit card draws directly on funds in the consumer's bank account (i.e. checking account). Most businesses that accept credit cards will also accept a debit card. A debit card transaction pays the seller of goods or services by withdrawing funds already on deposit in the buyer's bank account, as opposed to a credit card transaction where funds are loaned to the buyer by the card issuer. A debit card usually requires the owner to supply PIN number or a signature. As a result, a debit card can be considered a relatively safe alternative to cash.

Virtual Credit Cards-What they are, How they work and Their Benefits Explained

One of the most prominent activities going on online today is buying and selling which is known as e-commerce. A lot of Internet Users are looking for products that will solve their problem or help them to learn more about a subject or pressing issue. It is however noticed that most of these users have problems getting credit cards for their transactions and some that have are afraid of using it online because of the fear of losing their card to online hackers and scammers.
 To solve this problem, business application developers came up with Virtual Credit Cards (VCC).
 What is a Virtual Credit Card?
It is a non-plastic prepaid credit/debit card used for transactions. The major difference between normal plastic card and virtual credit card is that you cannot see or touch a virtual card i.e. it is not physical unlike the plastic card which you can see and touch.
Like the normal credit card, virtual credit card could be a Master or Visa Card with all the details of a normal card. Virtual Credit Cards contain the normal Master and Credit Cards digits, CVV/CVV2 Numbers and Expiry Date.
 They are used in normal online transactions and for verifications on websites such as Ebay, Amazon, Google Adwords, AlertPay, Facebook etc. There are no restrictions to the kind of transactions that can be made with VCC.
 There no any special way of applying for Virtual Credit Cards. There are many websites online selling VCCs. Most of them accept payment for the cards through Paypal and Liberty Reserve. You just have to place order and pay the equivalent amount for the card denomination you need.
Although VCCs have a lot of advantages, there is a limitation any one using them for transactions online may face. Some websites may ask you to scan and send the card you used for transaction on their site to verify your name on the card.
Enjoy shopping online with your VCC.

Saturday, 5 March 2011

Credit Card and Debit Card Difference

Credit and debit cards are both small plastic cards that look very similar to each other. Both debit and credit cards have the same numbering patterns, carry credit card company logos and typically feature the names of banks. Additionally, individuals can use these cards in much the same way to make purchases and shop online. Although credit and debit cards have many similarities, consumers should be aware of key differences between the two.

    Payment Method

  1. One major distinction between credit and debit cards is they each draw funds from a different type of account. Debit cards draw, or "debit," money from checking, saving or prepaid accounts, while credit cards take funds from lines of credit. In other words, a debit card draws from a consumer's actual money, while a financial institution loans a consumer money on credit card purchases, which he must repay later, with interest.

    Consumer and Legal Protections

  2. Debit and credit card users are subject to distinct protections under federal law. For instance, according to a January 2009 article in the "The New York Times," federal law allows credit card users to dispute unsatisfactory purchases from retailers, while no such protection exists for purchases made with debit cards. Additionally, federal laws limit consumers' liability for fraudulent credit card charges to $50, as of 2011. While debit card users have the same liability dollar limit, they may be liable for up to $500 if they wait more than 60 days to report the fraud to their banks or card issuers.


  3. Another way in which debit and credit cards differ is with respect to interest charges. Debit card purchases do not accrue interest because they draw funds directly from a consumer's checking account, meaning the purchase is complete as soon as the bank records the transaction. In contrast, purchases made with a credit card accrue interest if the cardholder does not pay them off within a specified time period, typically 15 to 45 days.

    Credit Implications

  4. A major difference between credit and debit cards is how they affect a person's credit report and FICO score. Debit cards do not affect individuals' credit reports or scores, as these cards are based on bank checking accounts, which are not credit products. On the other hand, credit cards almost always affect individuals' credit scores, either in a positive or negative fashion. For instance, a consumer who uses a credit card to make purchases and pays the balance at the end of each month will see the card raise her credit score, while an individual who carries a high balance on his card from month to month, exceeds his credit limit or defaults on his card will see his FICO score drop.