Debit card was first issued by The First National Bank of Seattle in 1978. The adoption of debit cards was successful as everyone now owns at least one debit card. For some, a debit card is a symbol of pre-financial independence. This is because most debit card owners open a bank account during the start of adolescence, the age where one is usually trained to be financially responsible. Debit cards provide the convenience of payments. Apart from withdrawing funds from the ATM, debit cards allow non-cash transactions using existing funds from one’s bank accounts.
Brief History of Debit Cards
The Bank of Delaware launched a debit card pilot program with the purpose of providing an alternative for carrying cash and checkbooks.
Marks the birth of the first Automatic Teller Machine, ATM located at Chemical Bank in Rockville, New York.
The First National Bank of Seattle issued the first debit card to business executives with large savings accounts. The bank only issued debit cards to those customers who had a long history with the bank and were in good standing.
Landmark implemented the first nationwide debiting system, built on the credit card infrastructure and ATM networks already in place.
The evolution of debit cards was dramatic over the years with consumer’s demand and technological improvements. Users now prefer debit cards more than credit cards as debit cards provide a more secure financial control compared to overspending and interest charges.
Types of Debit Card Systems
Did you know? A single debit card could store multiple systems for the ease of transactions. Those systems are as below:
- Online Debit System
Also known as “Electronic Funds Transfer at Point of Sale”, EFTPOS or PIN debit. Transactions using these systems are simple. The store has to input the total amount of your purchase. Then, simply swipe your debit card through the terminal and insert your PIN to authenticate the transaction.
- Offline Debit System
A technical term, “Signature Debit system” functions where you are required to authorize the transactions. The funds are then deducted directly from your bank account. Typically, debit cards that use this method should have the logo of a major credit card company on them such as Visa or MasterCard.
- Electronic Purse Card System
This “Smart-card-based electronic purse system” or “Prepaid Debit Card” enables machines to accept the card with no network connectivity. Widely used in the European regions, it works by storing funds into the card making it plausible to make a contactless payment.
Revolutionizing Prepaid Debit Card
What’s next for a debit card? Adding to the significant milestones of the debit card, Everus Technologies aim to issue a Prepaid Debit Card that uses cryptocurrency, alongside the launch of Brexily, a cryptocurrency exchange platform in May.
How Does It Work? – Reload the Brexily Prepaid Debit Card with any cryptocurrency assets such as Bitcoin, Litecoin and EVR token. Users are then able to withdraw funds from any ATM using the debit card as the system that allows the conversions of cryptocurrency to any fiat. Apart from that, users are able to make payments online and offline, eliminating hassle and low conversion fees. This debit card would also promote the use of both digital currency and cryptocurrency, elevating the future of financials.
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