Which of the following payment systems requires to have a bank account before…
2022
Which of the following payment systems requires to have a bank account before getting it from that bank?
(i) Credit card
(ii) Debit card
- A.
Only (i)
- B.
Only (ii)
- C.
Both (i) and (ii)
- D.
Neither (i) nor (ii)
Attempted by 8 students.
Show answer & explanation
Correct answer: B
A debit card is directly linked to a customer’s bank account, and payments are debited from that account. Therefore, a bank account is required before getting a debit card from that bank. A credit card works on a credit limit and does not strictly require an existing deposit account in the same direct way. Hence only statement (ii) is correct, so option B is correct.