Is it possible for someone in the US to have a Debit Card without having any sort of Bank Account?

Question

I work for a Call Center and we have to qualify the customer by asking if they have a Checking or Savings Account. But sometimes customers say a contradictory thing that they Do have a Debit Card but they don't have any sort of Account in Bank!!!

Answer 1

There are some companies that will provide a debit card that uses money you have already given to them. These cards are basically designed for those who have messed up by writing bad checks or something similar and can't open a normal bank account - but are not limited to just those people. There are also credit cards that work this way.

While there basically is a savings account behind the card, it is not a typical savings account where you can just run down to the bank and deposit or withdraw money.

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A Global Debit System Payroll Card is also known as a prepaid debit card. It does not have a line of credit, and it is not linked to a personal bank account; rather the cardholder controls the available balance by depositing money onto the card, which eliminates expensive interest rate fees, and the need for a checking account. A prepaid card offers cardholders the convenience and security of a traditional bank debit card or credit card, without the hassle of establishing a bank account, verifying employment, or established credit.

Answer 2

Not that I am aware of, and I have worked in this area for several years. By definition, a debit card acts like a credit card but debits your checking (or, in some cases, savings) account. However, it is possible to obtain a secured credit card. A secured credit card is a essentially a pre-paid credit card whereby you pay a deposit in the amount of the credit limit. This is likely what people mean when they say they have a debit card without a bank account.

It also may be possible for someone to purchase, as a gift card or for some other promotional purpose, a "pre-paid" debit card, but this is really another application of a secured credit card. However, these types of cards have no rolling credit limit. In other words, once you use up the amount on the gift card, the card is no good until more money is "loaded" onto it by pre-paying again. Some of these types of cards do not even offer this option. These kinds of cards are often given by employers to employees as part of an incentive program or by parents to their children who are travelling, going to school, etc.

Answer 3

What you should know about debit cards:




Obtaining a debit card is often easier than obtaining a credit card.
Using a debit card instead of writing checks saves you from showing identification or giving out personal information at the time of the transaction.
Using a debit card frees you from carrying cash or a checkbook.
Using a debit card means you no longer have to stock up on traveler's checks or cash when you travel.
Debit cards may be more readily accepted by merchants than checks, especially in other states or countries wherever your card brand is accepted.
The debit card is a quick, "pay now" product, giving you no grace period.
Using a debit card may mean you have less protection than with a credit card purchase for items which are never delivered, are defective, or were misrepresented. But, as with credit cards, you may dispute unauthorized charges or other mistakes within 60 days. You should contact the card issuer if a problem cannot be resolved with the merchant.
Returning goods or canceling services purchased with a debit card is treated as if the purchase were made with cash or a check.

Two types of debit cards




"On-line" debit cards: These cards usually are enhanced ATM (automated teller machine) cards which work the same as they would in an ATM transaction. It is an immediate electronic transfer of money from your bank account to the merchant's bank account.

To access your account at a store terminal, you must punch in your personal identification number (PIN), as you would at an ATM. The system checks your account to see if it has enough money available to cover the transaction.

"Off-line" debit cards: These cards usually look like a credit card and resemble a credit card transaction. The merchant's terminal reads your card, identifies it as a debit rather than a credit card, and creates a debit against your bank account. However, instead of debiting your account immediately, it stores the debit for processing later -- usually within 2-3 days.

Most, but not all, transactions are verified to see if there are adequate funds. Instead, of using a PIN number, the customer must sign a receipt, as he or she would with a credit card.




The "on-line" and "off-line" distinction may not matter to you unless:

your financial institution charges transaction or monthly fees.
you prefer the security of a PIN-required transaction.
you prefer that both options not be on one card.

Answer 4

thats crazy , how can anybody have a debit card without a bank account, maybe you are getting mixed up with a credit card as you do not need to have an account for that!

Answer 5

NO, a debit card drafts directly out of a bank account!

Answer 6

Without an account with a financial institution no one would have a debit card. Without such account, what would the card debit?

Answer 7

Yes, it is possible. Many banks sell prepaid debit cards. I've seen a lot of people get them as gifts.

Answer 8

Visa has a prepaid debit card. You load money on it to use.

Answer 9

YA.
An expired one.
But I have no idea for what it might be used, or why anybody would want one.

Answer 10

yea , its called theft