GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Online Debit Card


Synonyms:connected, linked, plugged-in
Filed Under: financial-banking
Tags: banking, debit cards
 

Definition of online debit card

online debit card
1. An online debit card deducts funds from the bank account immediately, as soon as the card is used. It may have the VISA or MasterCard logo, or only the issuing bank's logo, like an ATM card. There is no delay for processing the transaction -- the money is immediately deducted from your account.

Related Terms and Acronyms:

  • automated teller machine (ATM)   A terminal activated by a magnetically encoded card that allows customers of a bank or other financial institution to conduct everyday banking tasks such as deposits, withdrawals and transfers between accounts. An interconnection of these terminals allows customers to conduct certain transactions around the nation and the world; usually subject to a surcharge fee.
      ➥  See also Automated Banking Machine (ABM).
  • debit card (DC)   A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature. A PIN-based or direct debit card removes a purchase price from a customer's chequing account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase price from a customer's bank account in two or three days.
  • e-cheque   An electronic version of a paper cheque. The account holder writes an e-cheque using a computer or other type of electronic device and transmits the e-cheque to the payee electronically. Like paper cheques, e-cheques are signed by the payer and endorsed by the payee. Rather than handwritten or machine-stamped signatures, however, e-cheques are affixed with digital signatures, using a combination of smart cards and digital certificates. The payee deposits the e-cheque, receives credit, and the payee's bank clears the e-cheque to the paying bank. The paying bank validates the e-cheque and then charges the cheque writer's account.
  • electronic cash   Also known as e-cash. A system used to transfer cash over the Internet to pay for goods and service.
  • electronic commerce   The purchase or sale of products and services through an electronic system such as the Internet.
  • electronic funds transfer (EFT)   The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.
      ➥  Also known as e-Transfer.
  • home banking   A way to access bank accounts by phone. Typically customers can transfer funds, pay bills and make account inquiries.
  • offline debit card   A card with traits from both ATM cards and credit cards (usually VISA or MasterCard). Banks issue this type of card either instead of or in addition to an ATM card. The card can be used anywhere the VISA or MasterCard logo is displayed, but a line of credit is not accessed -- the customer's chequing account is debited. It is "offline" because the account is not directly accessed -- there is a delay of 24 to 72 hours before the debit is made in the account. If you sign a slip of paper to complete the transaction, it is offline. In the Canada, a Personal Identification Number (PIN) may be required to use an offline debit card.

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