Which of the following is not a feature of an ordinary debit card linked to a deposit account without…
An ordinary debit card lets the holder pay from the linked account and withdraw cash where the card is accepted. Without an overdraft, the card does not give the holder a…
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Which of the following is not a feature of an ordinary debit card linked to a deposit account without an overdraft?
Answer and explanation
Correct answer E
An ordinary debit card lets the holder pay from the linked account and withdraw cash where the card is accepted. Without an overdraft, the card does not give the holder a loan for purchases or an interest-free credit period. A credit card can give a payment grace period under its terms.
Option feedback
Option A
An ordinary debit-card purchase uses the customer's own available funds in this account.
Option B
An ordinary debit-card purchase on the stated account does not create a card loan that accrues interest.
Option C
An ordinary debit card can be used to withdraw cash from the linked account.
Option D
A debit card takes payment from the linked account, although the time at which a transaction posts can vary.
Option E
The debit card does not grant a 45-day credit period. A credit card may provide a grace period under its terms.
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