The most common card product in Europe, which is issued in our country are national (local) debit cards that bear the logo of the national card operator like Borica. Issuers of such cards are all banks that possess a banking license for issuance and management of bank cards. National debit cards are accepted by all ATMs and POS terminals linked to the authorization system of Borica. Every transaction carried out with such a card requires the introduction of the secret code associated with the card, called a Personal Identification Number (PIN). The introduction of the secret PIN code is required for transactions that take place at ATMs and for payments to be made at POS terminals.
With a national debit card the cardholder can perform the following operations:
- - draw cash through ATMs (cash dispensers)
- - pay for goods and services and draw cash through POS terminals
- - pay for goods and services on the Internet
- - perform transfers between accounts via ATMs
- - pay for services through ATMs
- - to perform reference and other payment and non-payment operations
Before starting to operate with his/her debit card, the customer must first order it. The banks issuing debit cards sometimes offer debit cards free of charge if the client makes a deposit with the bank. Upon issuing a debit card, the bank opens an account, where amounts are received.
Interest rates of the amounts usually are lower than those of the deposit. Debit cards usually have certain validity, which can be extended after expiry. Typically, debit cards are associated with the possibility, once amounts are being transferred, those amounts to be withdrawn in cash. It should not however be considered that the use of debit cards is limited to withdrawing cash. The debit card allows the cardholder to perform payments for goods and services.
The debit card allows the cardholder to pay for goods in shops via so-called POS-terminals. Those established facilities allow the cardholder to perform payments without carrying around cash. Certain debit cards have a feature that separates them from other debit cards and brings them closer in functionality to credit cards. This is the possibility to be used in the home country and abroad. There are debit cards that are issued in Bulgaria and can be used for payments abroad. These cards are known as cards of a “higher” class. Such debit cards are Visa Electron and MasterCard. They not only allow their users to withdraw cash from ATMs abroad, but also to perform payments over the Internet. As an e-card, the debit card also allows payments over the Internet. It must be specified that to do so it is necessary the debit card to be of the aforementioned “higher” class. Of course, this does not mean that ordinary debit cards cannot be used for such a purpose. They can perform payments to all Internet sites that accept them. Such card is the Maestro debit card.
