‍Debit card: what you need to know | BANCOMAT

A debit card is one of the most widely used payment tools today. But, in practical terms, what is a debit card and how does it work?

A debit card is linked to a current account and allows the cardholder to make payments and withdraw cash. Every transaction is charged directly to the available balance in the account.

Unlike a credit card, a debit card uses only the funds available in the current account. This debit card meaning makes it a practical tool for managing everyday expenses.

What can I do with a debit card?

A debit card can be used to carry out several transactions easily:

• paying in physical stores and making e-commerce purchases;

• withdrawing cash from automated teller machines (ATMs) or participating retail locations;

• adding the card to the main digital payment wallets, provided that the service is supported by the issuing bank.

In summary, a debit card allows cardholders to manage their main everyday expenses, with each transaction charged directly to their current account.

What is the difference between debit and credit card?

The main difference between a debit card and a credit card concerns when the transaction is charged:

• with a debit card, the amount spent is charged immediately to the current account;

• with a credit card, the amount is charged at a later date, according to the terms and conditions established by the issuing bank.

Another difference concerns the availability of funds.

With a credit card, the bank provides the cardholder with a credit limit that can be used to make purchases and withdrawals up to the amount granted.

With a debit card, on the other hand, cardholders can only use the funds available in their current account, subject to the card’s operating limits established by their bank.

Both debit and credit cards can be used to make payments and withdraw cash. Where supported by the issuing bank, both types of card can also be added to the main digital payment wallets.

Is “BANCOMAT” a debit card?

No. BANCOMAT is the Italian domestic payment scheme that enables payment and cash withdrawal transactions through the cards and services offered within the scheme.

A debit card is a payment and cash withdrawal tool, whereas BANCOMAT is the payment scheme whose infrastructure is used to process transactions.

For this reason, the expression “BANCOMAT card” may refer to a debit card that is enabled for the BANCOMAT scheme.

What are payment schemes?

To understand how a debit card works, it is useful to know what are payment schemes.

Payment schemes are infrastructures that make it possible to authorize, route, and settle a transaction between the cardholder’s bank and the merchant’s bank.

More specifically, a payment scheme makes it possible to:

• connect the cardholder’s bank with the merchant’s bank, transmitting the information required to authorize and route transactions;

• manage the settlement of transactions between the banks involved, ensuring that the amount is correctly transferred from the cardholder’s account to the merchant’s account.

Thanks to payment schemes, a card can be used at shops and ATMs even when the cardholder’s bank is different from the merchant’s bank.

BANCOMAT is the Italian domestic payment scheme, widely used for debit card payments and cash withdrawals. It is used every day across more than 2.5 million POS terminals and 45,000 ATMs throughout Italy.

How can you identify the payment schemes supported by a debit card?

A debit card can be enabled for one or more payment and cash withdrawal schemes.

To identify them, simply check the logos displayed on the card. If the BANCOMAT logo is present, the card is enabled for the BANCOMAT scheme.

The same card may also display the logo of one or more international payment schemes, allowing it to be used abroad at participating merchants.

How to get a debit card

To request a debit card, the applicant must generally:

• have an active current account;

• be at least 18 years old, except where dedicated solutions for younger customers are available.

The application can be submitted:

• at a bank branch;

• online through the bank’s website or app.

Once activated, the card is linked to the current account and is ready to be used.

How can you recognise a card enabled for the BANCOMAT scheme?

A debit card operating on the BANCOMAT scheme can be identified by the BANCOMAT logo displayed on the card.

A card enabled for the BANCOMAT scheme can be used to:

• make payments in shops;

• withdraw cash from ATMs and participating retail locations offering the Paga e Preleva service;

• make payments through digital wallets.

To request a card enabled for the BANCOMAT scheme, simply contact your bank and check the available solutions.

View the banks participating in the BANCOMAT scheme

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