For many people who choose not to pay with credit, a debit card is their initial payment option. With your debit card you can withdraw cash from cash machines, use your card at the checkout, and pay online or over the phone for bills and services.

It is a card that allows the bearer to electronically transfer money from their bank account while making a transaction. Detailed information about debit cards has previously been shared. Therefore, this article will be centered on Nigeria’s commonly used Debit cards.

Debit card

A debit card, often known as a check card or bank card, is a type of payment card that may be used to make transactions instead of cash. The word “plastic card” refers to both the aforementioned and an identity document.

These are similar to credit cards, but unlike credit cards, the money for the transaction must be in the cardholder’s bank account at the time of purchase and is moved straight from that account to the merchant’s account to pay for the purchase.

When you pay using a debit card, the money is taken immediately from your bank account. It’s the same as pulling out cash and giving it over, but it’s safer since the card can be easily cancelled if it’s lost or stolen.

You’ll also get some fraud protection, albeit not as much as you would with a credit card. When you use your card in a cash machine or most stores, you must enter your PIN code. Unless you’re paying using contactless.

Commonly used Debit cards in Nigeria

There are 2 most commonly used debit cards in Nigeria, and they are

• Visa debit card
• Master debit card

The only actual distinction between Visa and Mastercard is that your card works on the company’s payment network. A Visa card will not function on the Mastercard network, and vice versa. Any additional variances in cards are according to the exact card you hold.

According to Statistia, the percentage of people who use VISA debit cards in Nigeria is 19% and MasterCard debit cards is about 16% of all cards issued.

Frequently Asked Questions (FAQs)

Why is my debit card being denied despite the fact that I have money?

When your debit card is refused despite having sufficient cash to cover the transaction, the reason might be as simple as a mistyped PIN or an expired card, or it could indicate a security breach. For example, if your bank suspects that your identity has been stolen, it will block all of your cards and accounts until it is certain that you are the only one accessing the cash.

What fees are involved with debit cards?

There may be costs associated with using your debit card. Examples: Some banks impose a fee if you use a PIN (Personal Identification Number) instead of signing your name to complete a transaction. If you overdraw your account using your debit card, you may be charged a fee, just as if you “bounced” a check. If you use your debit card as an ATM card at a machine that is not controlled by your banking institution, you may be charged. Your banking institution, like other banks, must offer disclosures describing the possible costs connected with a debit card. To prevent an unexpected cost, make sure to read the disclaimers.

What distinguishes a debit card from a credit card?

While these thin, rectangular pieces of plastic appear to be the same, they are not. A credit card is essentially a loan from your line of credit, whereas a debit card immediately withdraws funds from your linked bank account to pay for purchases. For example, if you have 55,000 naira in your checking account and use a debit card to pay for 10000 naira in groceries, your balance will be 45,000. The withdrawal is reflected immediately in your current balance.