By KEESHA BETHELL, Guardian Business Reporter

keesha@nasguard.com

Fidelity Bank (Bahamas) Limited has officially launched The Bahamas' first Visa debit card, which will lead to a phasing out and replacement of its automatic teller machine (ATM) cards by the end of the year.

The card is intended to be used not only in The Bahamas, but anywhere in the world where Visa cards are accepted, but at the moment can only be used locally.

According to the bank's Vice-president Alfred Stewart, the card is yet be approved by The Central Bank of The Bahamas.

"The Central Bank has to give the stamp of approval for the card to be used outside the country," he said. " That institution is the clearing house for international transactions of that sort." Fidelity is anticipating approval by the end of the week.

The debit card is a Visa card as well as an ATM card, that allows its holder to make purchases wherever Visa cards are accepted, by accessing the funds in its holders' savings and chequing accounts.

For instance, if a debit card holder buys groceries totaling $100, the debit card is put through the card swiper. That $100 is then taken out of the holder's chequing or savings account. One hundred dollars will then be credited to the merchant's visa account.

With the purchase amount automatically deducted from the holder's bank account and the absence of credit, Fidelity views the new debit card as an aid to help Bahamians budget.

"You can't spend what you don't have," said Stewart.

In addition to its convenience, the debit card will reward users with 'freedom points' from Fidelity's own comprehensive loyalty program.

The points are redeemable at a selected group of retailers abroad, and can also be used to purchase airline tickets.

"Worldwide, electronic transactios are rapidly replacing the use of cheques and the Fidelity Visa debit card's versatility and global reach make it an essential card for all Bahamians," said Gregory Bethel, president of Fidelity Bank. "No other bank or financial institution is currently offering a Visa debit card in The Bahamas."