ACH transactions

[Tommy Trussell]

On Fri, Jul 31, 2009 at 1:05 PM, Graham Todd<grahamtodd2 at googlemail.com> wrote:
> Debit cards are very widely used here, and credit cards less so.
> Virtually anybody that opens a bank account receives a debit card, but
> credit cards are issued only after an application is made and a more
> rigorous credit check is made.
>
> Is the system of issuing debit cards different here in the UK than in
> the States?

I apologize -- after I hit "send" I re-read your question one more
time, and I realize now you asked about ISSUING cards, not USING
cards.

The process of ISSUING a Debit vs. a Credit card is much the same as
you describe. A Credit card requires certification of
credit-worthiness, whereas a Debit card presumes bank finances to back
it up.

People of limited means usually avoid banks, however. So I suspect the
majority of people using welfare benefits in the US will NOT also be
carrying a Debit card, because they don't tend to use bank accounts.
They very well might carry one or more CREDIT cards, however, because
banks collect a lot of money from people who cannot afford to pay off
the balance on their card each month.