Interac Direct Payment

Definition

• A way to pay for goods and services electronically using your bank card. The merchant swipes your card, you approve the amount, select the type of bank account (usually chequing or savings), enter a Personal Identification Number (PIN), and give final approval for the funds to be immediately withdrawn from your bank account and transferred into the merchant's account. You are given a paper record to verify the transaction.

Synonyms
debit card

Acronyms
IDP

Related Terms and Acronyms

• Automated Teller Machine (ATM) — Acronym, Canada,
  • A terminal activated by a magnetically encoded card that allows customers of a bank or other financial institution to conduct everyday banking tasks such as deposits, withdrawals and transfers between accounts. An interconnection of these terminals allows customers to conduct certain transactions around the nation and the world; usually subject to a surcharge fee.
  ➥ See also Automated Banking Machine (ABM).
• Credit Card (CC) — Acronym, Very Important,
  • A plastic card with a coded magnetic stripe that, when signed, entitles its bearer to a revolving line of credit, with a credit limit and interest rate determined by the borrower's income and credit report.
  ➥ A payment card that gives customers access to a revolving line of credit.
• Debit Card (DC) — Acronym, Important,
  • A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature. A PIN-based or direct debit card removes a purchase price from a customer's chequing account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase price from a customer's bank account in two or three days.
• Electronic Commerce — Definition,
  • The purchase or sale of products and services through an electronic system such as the Internet.
• Electronic Funds Transfer (EFT) — Acronym, Important,
  • The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.
  ➥ Also known as e-Transfer.
• Interac — Definition,
  • Canada's largest shared network of ATMs. It allows cardholders to access their accounts from any ATM on the network regardless of which financial institution owns the machine.
• Personal Consumption Spending — Definition,
  • What households collectively spend on goods and services.
• Personal Identification Number (PIN) — Acronym, Important,
  • A unique, confidential number or pass code, usually consisting of four to six digits, entered by a customer when using an Automated Teller Machine (ATM) or Interac Direct Payment, that gives the customer access to his or her account.
• Point of Sale (POS) — Acronym,
  • A location where a sales transaction takes place.
  • An electronic payment system for retail goods and services, through the use of credit cards or debit cards that directly access and deduct funds from a customer's chequing account. Also known as POS.
• Rebate Card — Definition,
  • This is a credit card that allows the customer to accumulate cash, merchandise or services based on card usage.
• Smart Card — Definition,
  • A card with an embedded computer chip which stores more information, performs more functions and is more secure than a credit card or debit card.