What Is debit card?

Answer 1

A debit card is used in the same fashion as a credit card except any charges are directly linked to either your checking or savings account and will be withdrawn when the retailers (the company you purchase from) financial system is poled by their bank (normally after midnight eah day). Each merchant (retailer) will have what is called a "floor limit" This is a figure often set between the bank and retailer (merchant) which if exceeded will trigger a transaction authorisation. This does not mean the retailer can or does know what funds are in your account, that is privileged data between you and your bank. However, it means that the merchants system basically asks the banks system if they will authorise the value. In some cases the bank will have an automated flag on accounts that reject the authorisation if the "value(s)" exceed risk level. Most will allow transactions to a permitted overdraft level. If that level or a no overdraft flag is found then the authorisation will come back as "AUTHORISATION DENIED". Additional checks made are first left with the retailers (merchants) electronic hot card file. This is a large database of stolen /fruadulent debit and credit cards which is updated frequetly (sometimes multiple times a day other time once a night) If a card is tendered that is flagged as stolen or cancelled then the retailer (merchants) system rejects the card and a message is placed on the epos (checkout) screen which is frequently coded so people dont know what it means - Normally the code will prompt the retailer to call their authorisation team. Here the card will often be requested to be "retained".