Chapter 4, Problem 17AA

To determine

To Discuss: The importance of debt card and its uses.

Explanation of Solution

There are different ways in which debit card can be use, which are as follows:

• Debit card is easy to obtain, it works like cash and check while purchasing a particular item or product.
• Debit cards includes the convince of carrying a plastic card rather than a checkbook, therefore faster transaction at point of sale.
• Debit card spending does not build debt and fund or cash are directly debited from user’s bank account.
• Debit card are used to analyze how consumers used to substitute between debit and other payments method.

Economics Concept Introduction

Introduction:

Debt card is a payment card that lets you make secure and easy payments, while purchasing online or by self. Debit card transaction is made directly through checking account. Debit card, also called as “check cards”, offer the convenience of credit cards and many of the same consumer protection when issued by major payment processor such as VISA or MASTERCARD. Debit card usually have daily purchase limits, therefore,it will not be possible to make a large transaction through debit card.