What is a Debit card? Definition Advantages and Disadvantages
What is Debit card Article: Bank issues Debit cards for doing online or in-person purchases by a swipe up. Debit cards are accepted in all of the merchant stores across the world via cooperative payment networks. apart from transactions, It is the best alternative of ATM Cards to withdrawing cash from atm machines.
Your current Bank balance is your purchasing limit in debit cards. in simple words, a debit card does not offer any credit line like a credit card.
What is Debit Cards?
A debit card is a bank product that allows your transaction from your bank account electronically. It is well known as Plastic money or plastic card. it provides a facility to withdraw cash from ATM machines too.
There are a few ways that individuals can use to pay to the merchant via Debit card –
- The cardholder can swipe up the card To pay.
- He can pay via waving the card on machine, The transactions will be possible by Contactless chip.
- In Some Machines, You have to insert the card and enter the Four-Digit Security to do the transaction.
- You can withdraw the cash direct from atm machine to pay the merchant.
Additionally, New Debit cards offer reward points on purchasing. Some Premium debit cards provide complimentary airport lounge access benefits like a credit card.
On Shopping from e-commerce websites, There is a new facility offered by Bank for Debit card holders can purchase in Monthly EMI.
Types of Debit Cards?
The varieties of Debit cards are dependent on banks’ cooperative payment networks brand. you a lot of times see the logos of VISA, MasterCard, Rupay, DISCOVER on cards. Which makes all transactions possible all over the world.
- American Express
|VISA Brand||1958||Visa is an American payment platform that is acceptable all over the world.|
|MasterCard||1966||MasterCard is a new york-based payment services brand that is the best alternative to VISA For global acceptance.|
|Discover||1985||Discover is Illinois based globally accepted payment network. it founded by Sears.|
|American Express||1850||American Express is a payment service brand. in the world’s widely accepted payment network. it is based in the USA.|
|RuPay||2012||Rupay is an Indian payment services brand That offers globally accepted. it is India’s most popular payment network brand. Above All, it is made in India.|
|Maestro||1991||maestro for services of payment networks. it was founded by MasterCard for good flexibility.|
How to apply For Debit Cards Or How can you get One?
To apply for a card, the applicant must be a citizen of India or a non-citizen of India. moreover, the individual should be a hold an account in a bank to get the card.
A savings account, Current account, or Salary account must be required in the bank. Moreover, to approve a card, There is no need to have a credit score.
If you do not have an existing account in a bank, You can open a bank account.
The applicant can visit the branch of the selected bank or browse the bank website to open an account in a preferred bank.
Bank will ask you few documents such as PAN Card And Aadhar Card. Moreover, Additional documents for proof of your identity and provided address.
Here is the list of basic documents required for approve a card –
Note: Additional Documents Like Cheque books and other required details may be asked by the bank.
Difference Between Credit Card and Debit card
There are a few similarities in both cards. both have the same logos, expiry, CVV And etc. but the real difference in both cards is the Credit limit that offers by banks on credit cards Only.
On a credit card, Bank asks for the applicant’s income statement to issue a credit line. Additionally, Bank only eligible the applicant who has a good credit score.
Unlike a credit card, A Debit card is only eligible for those who have a current or saving account in the bank. moreover, no credit score is required.
Apart from the credit line, the credit card offers discounts, cashback, reward points, discounts on international use, free lounge access like much more several benefits to applicant moreover, in few premium cards offers insurance covers and accident cover too. With the drawback of a high-interest rate, a credit card has much more benefits compared to debit cards.
A Debit card could be a money-saving tool for you if you use It wisely. no credit line means you are not going into a debt that you have to pay the bank. Obviously, no interest rate and additional hidden charges that you have to pay using a debit card. it is quite beneficial for wisely spending and free from overspending.
Click here For reading briefly – Difference Between Debit cards And Credit cards
What is CVV?
In Debit or credit cards, A 3 Digit PIN Number known as CVV. which is Stands For card security code. it is an additional security layer for providing good support on data during online transactions and card swipes.
Additionally, To find your card CVV number, you can check the CVV number back of your card.
What are the charges will applied on a debit card
There are very minimum charges that applied on a debit card compared to credit cards. To check the charges that will be applicable on a debit card – here is the list
- Withdrawal Charge – in debit cards, there are withdrawal charges applicable when you withdraw cash from a non-affiliated bank atm.
- Annual Charges – The annual maintenance charges are applicable to the of using a debit card. Moreover, choose wisely, There are few premium cards that have high charges and some cards are fully free.
- Replacement Charges – Unfortunately, if you lost your card there is a replacement charge will be applied for a new card.
Advantages of Debit Cards
The card comes with quite a several advantages from cashless transactions to withdrawing cash or online shopping.
|All In One Card||The Debit card is the all-in-one card to use. it offers various facilities and benefits. Above All, it is accepted everywhere on the globe.|
|Withdraw Cash||No need to carry ATM Cards, A debit card is enough for withdrawing cash from all atm machines in India or outside India.|
|Reward Points||There are a few new debit card that provides the facility of earning cash back reward points on spending which makes your purchasing quite meaningful.|
|EMI Facility||On shopping from a few e-commerce sites, You can enable your purchase into Monthly Installment By facility that comes with debit cards.|
|Purchase wisely||For saving and purchasing wisely, Debit cards are quite more attractive rather than credit cards. Moreover, There is No credit line in cards which is good for saving and overspending.|
Disadvantges of Debit Cards
The cards are the best bank product for daily lifestyle spending. but every product has a plus-minus. therefore, check the list of cons of debit cards.
|No impact on Credit Score||By the transactions through debit card, no credit score will impact. Moreover, credit cards could be better for increasing credit scores.|
|Withdrawal Charges||Banks offer card holders a complimentary limit number of withdrawals from atm machines by the use of a debit card. After that, charges will be applied. moreover, there is a withdrawal fee that will be applicable when you withdraw cash from non-affiliated Atm machines.|
|Low Reward Points||In a Debit card, the cardholder has a few conditions to earn reward points. Reward points are too minimum.|
|No Benefits of Necessity Fund||On a debit card, the card holder does not have the benefit of a credit line for the Necessary Funds.|
|Unprotected ATM Frauds||The number of credit and debit cards fraud is increasing day by day. it could be an issue for your bank account if someone hack your card details.|
Bottom Line (What is Debit card)
in conclusion, A debit card works like a combination of credit and ATM cards. however, there is no credit limit but it offers cashback reward points similar to a credit card. It enables cardholders to withdraw funds from an atm machine similar to an ATM Card.
The global acceptance and flexibility of money could be great reasons For choosing a debit card
For good convenience, Every individual must have to carry a debit card in their wallet. A Debit card provides great performance for spending cashless.
Additionally, For Saving and spending wisely, It the best Bank product For You.
MORE ARTICLES FOR DEBIT CARDS
- Different Types of Cards (ATM Cards) In India 2022
- What is the Difference Between Debit cards And Credit cards in India?
- HDFC Millennia Card Review – Benefits, Charges, Apply
- SBI Platinum Card Review – Limit, Benefits, charges, apply
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