Which type of debit card leads to an immediate transfer of funds?

Which type of debit card leads to an immediate transfer of funds?

• A. Signature/Offline card
• B. PIN/Online card
• C. Consumer Credit card
• D. Prepaid card

Answer: (B)

The choice of a PIN/Online card indicates a debit card that requires the use of a Personal Identification Number (PIN) for transactions. When this type of card is used, the transaction connects directly to the cardholder's bank account, enabling an immediate transfer of funds at the point of sale. This means that once the transaction is completed, the funds are withdrawn instantly, ensuring that the consumer cannot overspend beyond what is available in their account. This immediate transfer is contrasted with other types of cards. For example, a Signature/Offline card may not process the transaction as quickly, and the funds are not necessarily deducted from the account immediately, as they often rely on the merchant's batch processing. Consumer Credit cards involve borrowing funds rather than drawing directly from a bank account, leading to a delayed payment cycle. Prepaid cards can function differently based on loading and available balance but do not inherently ensure immediate fund transfer like a PIN/Online card. Therefore, the immediacy of fund transfer associated with a PIN/Online card solidifies it as the correct answer.

The choice of a PIN/Online card indicates a debit card that requires the use of a Personal Identification Number (PIN) for transactions. When this type of card is used, the transaction connects directly to the cardholder's bank account, enabling an immediate transfer of funds at the point of sale. This means that once the transaction is completed, the funds are withdrawn instantly, ensuring that the consumer cannot overspend beyond what is available in their account.

This immediate transfer is contrasted with other types of cards. For example, a Signature/Offline card may not process the transaction as quickly, and the funds are not necessarily deducted from the account immediately, as they often rely on the merchant's batch processing. Consumer Credit cards involve borrowing funds rather than drawing directly from a bank account, leading to a delayed payment cycle. Prepaid cards can function differently based on loading and available balance but do not inherently ensure immediate fund transfer like a PIN/Online card. Therefore, the immediacy of fund transfer associated with a PIN/Online card solidifies it as the correct answer.