Debit Card : You Can Do more with Right Card.

 

A Debit card (also known as a bank card, or plastic card ) is a kind of payment card that can be used instead of cash when a purchases is made. It is similar to a credit card, but unlike a credit card, the money is immediately transferred directly from the cardholder's bank account to pay for the certain transaction. These cards can be also used for paying bills or online purchases at Domestic and International shopping websites.

Some cards carry a stored value with which a payment is made (Prepaid card), but most relay a message to the cardholder's bank to withdraw funds from the cardholder's designated bank account. In some cases, the payment card number is assigned exclusively for use on the Internet and there is no physical card. This is referred to as a virtual card.

In many countries, such as most of Spain, the use of debit cards has become so widespread they have overtaken  cheques in volume, or entirely replaced them, and in some instances, also largely replaced cash transactions. Since the mid-2000s, a number of initiatives have allowed debit cards issued in one country to be used in other countries and allowed their use for internet and phone purchases.

Debit cards usually also allow an Instant withdrawal of cash, acting as an ATM card or this purpose. Merchants may also offer cash back facilities to the customers, so that the customer can withdraw cash along with their purchase. There are usually daily limits on the amount of cash that can be withdrawn.

Types of debit cards in India :

There are various types of debit card in our Country. It is essential to understand the features of each card. This helps you to use your card optimally. The types of debit cards in India depend on the type of payment platform linked to the particular card.. The following are some of the commonly available debit cards offered by the various banks in our country:

Visa Debit cards: Visa debit cards are regarded as the most globally accepted debit cards for all kinds of online and electronic transactions. Such types of debit cards are issued by banks that have tied up with the International Visa Payment System network.The Online transactions take place through the secure Verified by Visa  payment platform. The cardholders also have an overdraft facility.

There are different types of Visa Debit cards. But usually the banks issue Visa Classic Debit Card, Visa Gold Debit Card, Visa Platinum Debit Card, Visa Signature Debit Card, and Visa Infinite Debit Card. Each card has its own unique specification and features. The VISA ATM network is spread throughout India and abroad.

MasterCard debit cards:  MasterCard debit card is also the popular types of debit cards. MasterCard is one of the world’s most accepted forms of electronic payment. With a MasterCard, you can access your savings or current account through the company’s SecureCode payment platform.

The World Debit MasterCard, the Standard Debit card and the Enhanced Debit card are some of the most popular types of MasterCard debit card. MasterCard also offers an  excellent benefits and a rewards points to the customers.

RuPay Debit cards: RuPay debit card was introduced in India. Such types of debit cards are issued under a Domestic Debit card scheme by the National Payments Corporation of India. These cards are accepted only Domestically. RuPay debit card can be used to make a variety of Domestic transactions as you can pay for purchases on online and retail outlets as well utility bill payments.These debit cards were especially launched to provide electronic access to bank accounts to the people who reside in smaller towns and villages.  RuPay debit cards are issued by all major public and private sector banks.

RuPay is a great alternative to both MasterCard and Visa. The low transaction costs and easy availability even in rural areas makes RuPay card an attractive option for everyone.

Contactless Debit cards: Contactless debit cards allow the payments to be made without swiping the card. Simply wave this card over the payment machine, the transaction is automatically processed.  These debit cards offer a faster method of cashless transaction.These debit cards work on the Near Field Communications or Radio Frequency Identification principle. Through these technologies, the card is connected to the PoS terminal. Such types of debit cards are a very safe way of making electronic payments. You don’t have to hand over the card to the cashier. This prevents the cashier from duplicating or storing the details of your debit card.

Major banks in India such as State Bank of India, Axis Bank, and HDFC Bank issue Contactless cards to its customers.

Maestro Debit Card: Maestro Debit cards are similar to the MasterCard debit card. These cards are accepted globally because of its benefits. One can use this card to withdraw cash in ATMs across the world, payment for online purchases, and for transactions at Domestic and International PoS outlets can be done through this card.

Pros and Cons of Using Debit Card : 

Pros :-

·         Safer than cash

·         Doesn't incur debt

·         Easy to get—no application necessary

Cons :-

·         Limits expenditures to cash in bank and/or a daily amount

·         Easy to incur overdraft fees

·         Fewer perks and protections than credit cards