What is a debit card?
A debit card is a payment card that enables users to make purchases or withdraw cash directly from their bank account, such as a checking or savings account. Unlike a credit card, which relies on borrowed funds, a debit card immediately deducts money from the user’s account when a transaction is made.
Commonly used for everyday expenses, debit cards help avoid interest charges or debt, as spending is restricted to the available balance. They also come equipped with security features like PIN protection and fraud detection.
How does a debit card work?
Debit cards are linked to payment networks such as Mastercard, VISA or American Express and are identified by a unique 12-16 digit card number, expiration date, and CVV/CVC code on the back. Modern debit cards are also compatible with payment services like Apple Pay, allowing for seamless transactions via mobile devices.
What to consider when using a debit card abroad
The key advantage of using a debit card abroad is the ease of payment. Even without the local currency, conversions and international transfers are processed in real time, allowing cardholders to make payments or withdraw cash seamlessly while the currency conversion happens in the background.
Debit card: Good to know for SMEs and beyond
Debit cards provide numerous benefits for businesses of all sizes, especially those focused on security and controlling overspending. With a debit card, companies can only spend what’s available in their account, ensuring full control over their expenditures while avoiding expensive overdraft fees.
Additional security features include setting limits on the available balance and adjusting the expiration date of individual debit cards, thanks to the separation of admin and user rights. Moreover, depending on the card issuer, you can access competitive and transparent foreign exchange rates, which is especially useful for frequent online purchases in various currencies.
Debit cards also tend to be easier to obtain than for instance credit cards, as credit limits are typically tied to a company’s financial performance.
Making payments easier with the amnis business debit card
The amnis multi-currency debit card enables customers to make purchases and manage multiple foreign currency accounts with ease. Offering 0% foreign exchange and transaction fees, it’s the simplest solution for reducing transaction and FX costs while enhancing the transparency of your financial processes.
Business debit card vs. credit card: Which one to use
As your business grows internationally, choosing between a business debit card and a credit card becomes important. While both have pros and cons, the amnis multi-currency debit card offers the benefits of a credit card without the associated risks, enhancing flexibility and reducing financial risks. Find out more about this in the article “Business debit card vs. credit card: Learn which fits best for you”.
Explore related topics
The prime rate is the interest rate that commercial banks charge their most creditworthy customers, often large corporations. From a currency perspective, it reflects the cost of borrowing in a particular currency and serves as a key indicator of monetary policy. Changes in a country’s prime rate can influence capital flows, foreign exchange rates, and the overall strength or weakness of that currency in global markets.
About amnis
amnis offers a comprehensive platform for international banking, offering a range of tools in one place. Transfer money abroad, exchange currencies 24/7 and collect international money transfer with your own IBAN accounts supporting 20+ currencies. Founded in 2014 in Zurich, amnis is a regulated payment institution under the supervision of the Banking Supervision Section in Liechtenstein (FMA) within the EEA.