Enjoy accessibility to your very own savings account with the comfort of plastic cash. Widely known as ATM card, a debit card is the perfect aid for making hassle free deposits and withdrawals.
What is a Debit Card?
The most extensive utility of a debit card pertains to fund transactions. These cards provide the ease of depositing and withdrawing money as per your convenience. They cut out the waiting time at overcrowded banks from your life. These days, bank account holders are making use of their debit card details for mobile banking and internet banking as well. Thus carrying a debit card in your pocket serves to be an essential tool for convenient purchases and most monetary transactions.
Different Types of Debit Cards
There are essentially six different types of debit cards available to Indian customers:
- VISA Debit Cards: These cards are issued by major Indian banks in collaboration with the popular VISA payment services that offers the Verified by Visa (VbV) platform aimed at online transactions.
- VISA Electronic Debit Cards: Though such cards are quite similar to VISA Debit cards, they do not provide overdraft facility.
- MasterCard Debit Cards: These cards are very popular as they provide their customers with worldwide access to their funds. Here, customers can use the platform of MasterCard SecureCode for carrying out their transactions.
- Contactless Debit Cards: By using these cards, customers gain access to easy means of making payments at PoS terminals. These cards provide safe electronic payment facilities at all times.
- RuPay Debit Cards: Such cards were introduced by the NPCI as a part of its domestic card scheme. They facilitate online transactions and ATM transactions on the Discover network and the National Financial Switch Network respectively.
- Maestro Debit Cards: Maestro debit cards initiate immediate access to an account holder’s deposits by making use of a vigorous network of attuned ATMs, online resources, and PoS outlets.
Pros and Cons of Using a Debit Card
Here, we are presenting the advantages and disadvantages of using a debit card.
Let’s begin with the main advantages of paying your bill and shopping for fun with a debit card; instead of a credit card, cash or cheque.
Convenience is the Key
With a debit card in hand, you are not required to carry the exact amount of real cash; write a cheque and then put the details into a register; or take the stress of paying at a later date with a credit card.
Lesser Time Involved Merchants accept debit cards with less verification processes (than they would do for credit cards or cheques). Additionally, as the act of swiping a card is easier and less time consuming than writing a cheque, it serves to be a favored option for stores and buyers alike.
Confines you to your Budget
While using a debit card for shopping, you would know your limits and be conscious about confining yourself to your deposits.
Easy to Get
Once you open a savings account, you are eligible to opt for the ATM card linked to the account. You need not follow up on any lengthy processes.
Easy to Get the Cash in Hand
Most online stores offer smart “cash backs” on debit card transactions.
Focusing on the flip side of the coin, there are certain small disadvantages of opting for debit cards.
- Resolving disputed charges can be a problem while you are using a debit card. You would stand a risk of losing your money if the items paid for are defective, improper, or fail to get delivered.
- Some banks may charge extra fees for using debit cards at certain retail outlets. Also, there can be penalties in case your account balance drops below the minimum balance amount required by the bank.
- You do not get the opportunity of improving your credit score while using debit cards for paying off your bills, or for shopping online/ offline. On the other hand, paying for your credit card bills on time surely helps in enhancing this score.
- There are several cards available that offer amazing incentives for using them; but here, you may not get reward points for the usage of debit cards.
- Debit cards provide you low protection from fraud; you can end up with zero money in case your debit card and its PIN fall into the wrong hands.
Your Best Friend – Debit Cards!
Online transactions, prepaid facilities, bonus gifts with reward points, convenience, rapid transactions, tracking expenses…. What else do you need? Owing to the growing craze for shopping and hanging around with plastic cash, debit cards are fast becoming the best companion for many. These cards do not allow you go beyond your limits and make your shopping experiences very exciting!
Go on; get your own debit cards now!