Terms & Conditions
Although it is fairly simple to obtain and use a debit card, there are certain restrictions, terms and conditions to bear in mind. You may find that some financial institutions require customers to be over a certain age or have a reasonable credit history and regular income before they will issue a card. Although most debit cards and current accounts offer the same basic features, you should ensure that you obtain a copy of the terms and conditions of each account before deciding which bank or building society to bank with. In addition to these articles, which cover terms and conditions specific to debit cards, you may wish to refer to Terms & Conditions Surrounding Current Accounts for more information.
Daily Withdrawal Limit
A debit card comes with a daily withdrawal limit. Typically, this is £300 for Maestro, Visa Debit and Visa Electron cards and £250 or £200 for Solo, depending on your bank or building society and their individual terms and conditions. If you have a poor credit history, your bank or building society is more likely to offer you a Solo or Visa Electron card, as there tend to be more stringent restrictions on these cards. The withdrawal limit ensures that a criminal cannot steal your card and clear all the money from your account instantly at an ATM. If you need to take out more than the withdrawal limit on any one day you should be able to do at a branch of your bank or building society.
Bankruptcy / Unemployment
Your credit rating may affect your ability to open a current account and therefore attain a debit card. If you are unemployed, a bank or building society may be unwilling to offer you 'full' debit card facilities. Although it depends on your personal circumstances (such as how you became unemployed, how well you pay your debts and your spending habits) you may find that you are offered a Solo or Visa Electron card, or a cash card, with more limited services. A 'full' debit card typically refers to Visa Debit and Maestro cards, which usually come with overdraft and cheque guarantee facilities, while a cash card's only functions may be cash withdrawals and balance enquiries from ATMs.
Multiple Debit Cards
In most cases, you will be issued with a debit card for each current account you have. There is no limit to the number of current accounts you can hold and therefore, the number of debit cards you can have. Multiple accounts are beneficial if you wish to optimise your money management options, especially if you intend to use fee-paying services and find that different accounts have different benefits, for example, one has no charges for cash withdrawals made abroad. For further information see Multiple Current Accounts.
If you have a poor credit history or a low income, you may find that your application for a current account is denied by certain financial institutions. For instance, a handful of institutions require that you deposit a minimum amount each month for the account to remain open. Cash cards are often offered to people who have a poor credit history, as they cannot be used to purchase goods and services in stores (and therefore limit the chances of running up debts), but can be used to withdraw cash from an ATM.
For details of the terms and conditions of different payment systems, see:
