Purpose debit card
A debit card is like a personal check or cash minus the burden of carrying huge amounts of money. A purpose debit card is one that is issued by the bank for a special purpose either for promoting or supporting another business or at the request of some other corporate company. Some examples of purpose debit cards include meal debit cards, gift debit cards and grocery debit cards.
Issuing a purpose debit card
A bank can have a tie-up with another non-banking company for promoting their services. Some big companies provide their employees with a purpose debit card that can be used for special needs or purposes. For example, if a company provides its employees with a meal debit card, it means the company has entered into a deal with its bank and issued a special kind of debit card which can be used for buying any items of food at different shops, hotels, restaurants and cafes. The debit card is loaded by the company on a regular basis. A meal debit card may also be part of the salary income given to an employee every month.
Types of purpose debit cards
Some types of purpose debit cards include and are not limited to:p>
- Gift debit card this is a kind of debit card that one can gift to a family member, friend, or even an employee. When you are not sure what gift you want to purchase for someone you know, it is best to allow them to choose their gift. However, giving them cash or asking them to come up with some idea would not seem appropriate. A gift debit card allows you to load a specific amount of money and then allows the user to spend on whatever he prefers to the extent limited by the debit card.
- Medical debit card a card that allows you to make expenses reserved for emergencies such as hospitalization, medical bills, etc. is a medical debit card.
- Gas debit card this card can be used to fill up gas. A tie-up between the issuing bank and a particular gas company can also give the customers discounts and various other offers for using the gas debit card.
Benefits of a purpose debit card
A corporate employer may want to celebrate an occasion and hence gift his employees with something special. When he is not sure what he must buy for each one of them, he would prefer to give them purpose debit cards that allow them to spend the money on things of their choice. Also, the issuing bank is at ease with the purpose debit cards as their use is restricted to certain types of transactions valid at only approved points of sale at the sole discretion of the issuing bank or the requestor. Similarly, banks can also issue such cards as part of their promotional activities.
Overview
A purpose debit card is just another name for cashless transactions. These kinds of debit cards are very popular as chances of misuse when they are lost or stolen are also reduced. Many business enterprises such as hotels, gas companies, shopping malls promote the use of purpose debit cards as part of their advertising and promotion activities.
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