What is a debit card? Instructions for using debit cards safely and effectively
23/04/2025
"What is a debit card" is a question that many people are interested in in the financial 4.0 era. With convenience and safety, debit cards are increasingly widely used, becoming the preferred payment tool in modern life. This article will provide a comprehensive overview of debit cards, helping you better understand this type of card.
Readers should note: The data and information in the article are compiled from general market sources and do not apply specifically to SeABank's products or services.
1. What is a debit card?
A Debit Card is a type of payment card issued by banks or financial institutions, allowing the cardholder to make spending transactions using the amount of money currently in the bank account linked to the card. Simply put, debit cards work on the principle of "spend as much as you spend", the amount you spend will be deducted directly from your account balance. This is different from credit cards, allowing users to "spend now and pay later".
Debit cards are a very convenient means of payment, helping users make transactions such as cash withdrawals, transfers, online payments or at POS points of sale. Debit cards contain basic information that helps identify the owner and ensure transaction security, including:
Name of issuing bank: Usually printed with the logo or full name of the bank.
Card organization logo: For example, Visa, Mastercard, JCB, Napas (for domestic cards).
Cardholder's full name: Embossed or imprinted, identical to the information registered with the bank.
Card number: A series of numbers consisting of 16 - 19 digits, embossed or imprinted on the card. This is the unique code of each card.
Issue date and expiration date: Usually printed in MM/YY (month/year), indicating the card's usage time.
CVV/CVC code: A 3-digit security code on the back of the card, often required when making online transactions.
EMV chip or magnetic strip: Stores card information encrypted.
Debit cards usually have a validity period of 3 - 5 years, depending on each bank's policy. When the card expires, the cardholder can contact the bank to get a new card. This is to ensure information security and upgrade security technologies according to current standards.
A debit card allows the cardholder to spend within the available balance in the bank account linked to the card.
2. Types of debit cards in circulation
Currently, debit cards are divided into two main types: domestic debit cards and international debit cards. Each type has its own characteristics, scope of use and benefits. Specifically:
Card type
Domestic debit card
International debit card
Card interface
Has the logo of the domestic card switching organization (eg NAPAS).
Has logos of international card organizations (for example: Visa, Mastercard, JCB).
Scope of use
Can only be used within the country, at card acceptance points of domestic banks and payment organizations.
Accepted payments worldwide at card acceptance points of international card organizations such as Visa, Mastercard, JCB.
Fee schedule
Issuance and maintenance fees are usually low, ranging from 50,000 - 100,000 VND/year.
Issuance and maintenance fees are higher than domestic cards, from 100,000 - 300,000 VND/year.
Foreign currency conversion fee when used abroad (usually 2 - 3% of transaction value).
Spending limit
Depending on bank regulations and account balance.
Depending on bank regulations and account balance, it may be higher than with domestic cards.
Payment method
Payment at POS machines, ATMs, online payment via domestic payment gateway.
Pay at POS machines, ATMs, pay online on international websites.
Promotion
Incentives often focus on free in-network ATM withdrawals or discounts when paying at partners of domestic card-issuing banks.
Enjoy incentives from international card organizations and global partners of card-issuing banks such as discounts on air tickets, hotel reservations or refunds when spending or shopping online at international websites.
Choosing to open a domestic or international debit card depends on the user's transaction needs and scope of activities. If you only want to use the card for domestic spending needs, a domestic debit card will be the ideal choice. International debit cards will be suitable for people who often travel or shop online on international payment platforms and sites.
3. Basic functions of a debit card
Debit cards are not only a convenient means of payment to replace cash, but also an effective financial management tool with many useful functions:
Pay: Make transactions easily at stores, supermarkets, restaurants via POS machines (swipe, tap, insert chip) or online by entering card information (card number, expiration date, CVV/CVC code).
Withdraw money: You can withdraw cash from your account at ATMs inside and outside the banking system at any time, just need a card and PIN.
Transfer money: Supports quick transfer via ATM, Internet Banking or Mobile Banking, convenient for paying bills or urgent financial needs.
Balance inquiry: Check your account balance instantly via ATM, banking application or SMS Banking, helping to manage spending effectively.
Print statement: Track transaction details via account statements at ATMs, transaction counters or online via Internet Banking/Mobile Banking.
A debit card is an effective financial management tool with many useful functions.
4. Types of fee schedules when using debit cards
To be able to use your card effectively and avoid unnecessary costs, you need to clearly understand the following fee schedules related to debit cards:
1 - Card issuance fee:
Applicable when opening a card for the first time or remaking a card (lost or damaged).
Fees:
Domestic card: 50,000 - 100,000 VND.
International card: 100,000 – 200,000 VND.
Some banks waive the initial card issuance fee, but premium cards (Platinum, Visa Signature) are usually not free.
2 - Annual fee:
Card maintenance fee, collected annually.
Fees:
Domestic card: 50,000 - 200,000 VND/year.
International card: 100,000 - 500,000 VND/year.
Some banks waive the first year's annual fee or reduce the fee if the conditions are met (minimum balance, required transactions).
3 - ATM transaction fee:
Cash withdrawal:
Same bank: 0 - 1,100 VND/transaction.
Other banks (domestic): 3,300 – 10,000 VND/transaction.
Withdraw at foreign ATMs: Calculate a percentage of withdrawal value (usually 2–3%) + fixed fee.
Balance inquiry, mini statement printing: Fees depend on each bank's policy.
4 - Transfer fee:
Internal (same bank): Usually free or under 3,000 VND/transaction.
Other banks: Ranging from 7,000 - 15,000 VND/transaction, depending on transfer amount and bank policy.
Many banks offer free online transfers to encourage digital transactions.
5 - Other service fees:
Re-issue PIN: Fees apply when requesting a new PIN due to forgetting.
Currency conversion: 2–3% of transaction value when using the card abroad or paying in foreign currency.
Check transactions: Fees apply when requesting the bank to re-check suspicious transactions, the fee level depends on each bank.
Note:
Understand the fee schedule: Find out each bank's policies to choose a card that suits your needs.
Track notifications: Check for fee schedule updates from your bank.
Take advantage of offers: Many banks offer free issuance, annual, and transfer programs to optimize costs.
5. Benefits and limitations when using debit cards
Debit cards have become an indispensable part of modern life because of the conveniences they bring. However, using a debit card also comes with some limitations:
Benefit
Limit
Convenient: Pay quickly and easily at retail locations or online, reducing the risk of losing cash.
Safe: Security technology such as EMV chip and OTP protects accounts and supports card locking as soon as abnormalities are detected.
Financial management: Detailed statements help control spending; Many banks offer instant balance fluctuation notifications.
Low fee schedule: Annual fee, lower transaction fee than credit card; Many banks offer free basic services such as transferring money or withdrawing money within the same system.
Depends on account balance: Can only spend within available funds, does not support "spend now, pay later" like credit cards.
Spending limits: Unable to meet large or unexpected financial needs if the account does not have enough money.
Debit cards offer many benefits but also have some limitations.
6. Conditions and procedures for registering for a debit card
Nowadays, owning a debit card is easier than ever. Besides opening a card directly at the transaction counter, you can also register to open a debit card online quickly and easily through the bank's website or mobile application.
Conditions for opening a debit card:
Age 18 or older, with full civil capacity. Some banks may have separate regulations for ages 15 to under 18 (guardian required).
Be a Vietnamese citizen or a foreigner legally residing in Vietnam.
Have a payment account at the card issuing bank.
To register to open a debit card, you also need to prepare the following documents:
Identification documents: ID card/CCCD that is still legally valid for Vietnamese citizens or valid passport and documents proving legal residence in Vietnam (visa, temporary residence card) for foreigners.
Application to open a debit card (according to the bank's form)
Other documents as required by the bank.
7. Distinguish between debit cards and credit cards
In the modern financial world, debit and credit cards are tools that play an important role in everyday transactions. Although they are both non-cash payment methods, their nature and how they operate are different. Specifically:
Characteristic
Debit card
Credit card
Card structure
The words “Debit Card” are on the surface of the card
The words “Credit Card” are on the surface of the card
Card function
Withdraw money, transfer money, pay for goods/services (online and offline), balance inquiry, print statements
Payment for goods/services (online and offline), cash withdrawal (high withdrawal fee), installment payment, emergency cash advance
Card nature
Use available funds in the linked bank account
Use within the credit limit specified by the bank and pay later within a certain period of time
Spending limit
Limited by account balance
Limited by the credit limit granted by the card issuing bank
Scope of use
Domestic and international (depending on card type)
Domestic and international (depending on card type)
Expense
Issuing fees are low or free
Low annual fee
ATM transaction fees depend on the bank and ATM
The issuance fee is free or often higher than a debit card
High annual fee
High cash withdrawal fee (usually about 4% of withdrawal amount, minimum 100,000 VND)
Interest rates apply if the outstanding balance is not paid on time
Conditions for opening a card
Have a bank account
Be of age (usually 18 years old)
Have valid identification documents
Require proof of income and good credit history
Other unique characteristics
Better control of spending, less debt risk
Simple card opening procedures
Flexibility in spending, many incentive programs and points accumulation
Strict financial management is needed to avoid debt and high interest rates.
Debit cards are suitable for those who want to manage spending based on available funds, while credit cards are the ideal choice for flexible spending and taking advantage of incentives from banks. Understanding the difference between the two types of cards will help you choose the right product and optimize your personal financial benefits.
Debit cards and credit cards have different natures and ways of working.
8. Why should you open a debit card at SeABank?
SeABank is one of the leading joint stock commercial banks in Vietnam with 30 Years of experience operating in the market. SeABank has affirmed its position through sustainable development, a nationwide network and diverse financial service products, meeting the needs of many customer segments. In particular, SeABank always aims to become the most popular bank, demonstrated by constantly improving service quality, focusing on customer experience and applying modern technology to operations.
Owning a SeABank debit card brings you many practical benefits:
Low fee schedule: SeABank provides debit cards with low issuance and maintenance fees.
Many shopping incentives and other promotions: SeABank cooperates with many major partners in the retail and service industry, providing debit cardholders with attractive incentives such as discounts, refunds or points when shopping at supermarkets and online stores.
Card opening procedures are quick and convenient: SeABank provides online debit card opening service via SeAMobile website/mobile application with simple and quick procedures.
Diverse functions: SeABank's debit card fully supports the required payment functions, and also supports many international transactions at millions of locations worldwide.
Withdraw cash easily: With a widespread ATM network and links with many banks in the NAPAS system, withdrawing cash with a SeABank debit card becomes extremely convenient, wherever you are.
High security: SeABank debit card applies advanced EMV chip technology, touchless transactions (Ccontactless) along with other security measures such as information encryption and two-layer authentication, helping to minimize risks when using cards for customers.
Types of debit cards being issued at SeABank:
Domestic debit card S24++
You can withdraw cash and check your balance when traveling or working abroad in Thailand, Russia, Malaysia and Korea.
Earn interest on card account balance
Enjoy and discover extremely attractive incentive and discount programs at thousands of incentive points of partners affiliated with SeABank
SeABank Visa/MasterCard Gold debit card
Cashback on all payment transactions up to 1%
Enjoy and discover extremely attractive promotional programs and discounts of up to 70% at thousands of promotional points of partners affiliated with SeABank
SeABank Visa SeAPremium Debit Card
Products reserved for Priority Customers
Lifetime annual fee waived for SeABank Priority Customers
Cashback on all payment transactions up to 1%
24/7 global consulting service (Visa Concierge service) free service, global emergency support service
Enjoy special preferential services for Priority Customers
BRG ELITE debit card
Refund all spending transactions
Enjoy incentives for our services tBRG group
Enjoy and discover extremely attractive incentive and discount programs at thousands of incentive points of partners affiliated with SeABank
Earn reward points for every transaction, automatically refund money to the customer's payment account
SeABank debit card has many diverse features and attractive utilities.
9. Notes when using debit cards
Good debit card management not only helps protect your assets but also optimizes your daily financial experience. Specific notes when using debit cards:
Register for Internet Banking, Mobile Banking: These systems help you manage your accounts, check transactions, and make online payments quickly. You can also set up balance fluctuation alerts to track any changes in your account immediately.
Card information security and safety: Debit card information such as card number and expiration date, and CVV/CVC codes need to be absolutely confidential. Do not share this information with others or enter it on untrusted websites. Change your PIN regularly and use advanced security features like two-factor authentication (2FA) to make your account more secure.
Check your spending limit: Before making a large transaction, check your card's spending limit to ensure the transaction is not interrupted. You can contact your bank to adjust your limit or add more money to your account.
You should register for Internet Banking and Mobile Banking when using a debit card.
Debit cards are convenient, safe payment tools and easy to manage personal finances. Hopefully the information shared above has helped you better understand what a debit card is and what to note when using a debit card to optimize your financial transactions.
Southeast Asia Commercial Joint Stock Bank SeABank
Address: BRG Building, 198 Tran Quang Khai, Ly Thai To Ward, Hoan Kiem District, Hanoi
