Debit Cards Gain Popularity in Pakistan

In an era characterised by credit card culture, debit cards are gaining popularity, among all sorts of bank account holders. In the western countries, the debit card was already quite popular. However, in the East also, the use of debit cards is on increase.

The simple reason why the use of debit card is increasing at such a remarkable speed is that the issue of a debit card by a bank does not generally involve any problem. To obtain a credit card, one must have a certain income level and meet other requirements.

In a developing country like Pakistan, many people may not qualify for the issue of a credit card. However, almost every one who has a bank account can be issued a debit card by his bank.

The obvious difference between a credit card and a debit card is that whereas, in case of the former, one uses the borrowed money (on which he has to pay interest), the user of a debit card uses his own money which he has deposited in a bank account. He has the satisfaction that he has neither to return the money nor he has to pay any interest on it.

Debit cards as one understands, have two uses. In the first instance, they are used as ATM cards and, secondly, they enable customers to withdraw, electronically, a certain amount of money from their bank account for the purchase of a specific commodity from a trader. However, the latter use is not very common and debit cards are generally used as ATM cards…