A debit card is one of the most important and convenient financial tool. It allows cardholders to make online and offline purchases, pay bills, and withdraw cash. With the debit card, you no longer need to carry large sums of money. with the right card, you can effectively manage your finances and make informed spending decisions.
Debit card is a piece of plastic with a magnetic chip, some details, and engravings on it. By using it you easily transfer the funds directly from your savings and current account. It is directly linked to your bank account. For your every transaction banks directly deduct money from your account. Also, remember that this is no borrowing like a credit card. Simple debit cards allow you to use your money in a more convenient way to make your life easy.
Many banks and financial institutions in India provide various debit cards. They allow you to enjoy a range of attractive benefits. Here is the list of top debit card providers in India for domestic and international use:
Debit cards come equipped with a multitude of features designed to enhance user convenience and security. Some of the standout features include:
Debit cards may come with certain fees and charges, which vary from bank to bank. Here’s a breakdown of common charges associated with debit cards:
| Type of Charge | Fee Range |
|---|---|
| Annual Fee | ₹100 to ₹1,500 (depending on card type) |
| ATM Withdrawal Fee | Free up to a limit, then ₹20 per withdrawal (other bank ATMs) |
| Replacement Card Fee | ₹200 - ₹500 |
| International Transaction Fee | 3-5% of transaction value |
| Cash Deposit Fee at ATM/CDM | Free up to a limit, then ₹50-₹100 per deposit |
| PIN Reissue Charges | ₹50 - ₹200 |
| Balance Inquiry at Non-Home ATM | ₹5 - ₹10 per inquiry |
When applying for a debit card, banks typically require the following documents:
Getting a debit card is very simple. Here’s how you can apply for one:
A debit card works as a gateway between the funds in your account and your transactions. Here is a simple explanation of how a debit card works:
Debit cards offer you a very convenient way to make online and offline transactions. But you should also be very careful while using your debit card to prevent financial fraud:
Many people confuse debit cards with credit cards, but they serve different purposes. Here’s a quick comparison:
| Feature | Debit Card | Credit Card |
|---|---|---|
| Source of Funds | Linked to a bank account | Borrowed from the bank |
| Interest Charges | No interest | High-interest rates on unpaid dues |
| Debt Risk | No debt risk | Potential debt accumulation if not managed properly |
| ATM Withdrawals | Free up to a limit, then charges apply | High fees + interest applies |
| Reward Programs | Limited rewards | More cashback, discounts, and travel perks |
| Usage Limitation | Limited to account balance | Can spend beyond available balance |
| Impact on Credit Score | No impact | Affects credit score based on usage and repayments |
A debit card is a plastic card provided to you when you open a savings, current, or salary account in a bank. It gives you access to the funds in your account, allowing you to withdraw money from ATMs or make purchases online or in-person. Essentially, it combines features of both an ATM card and a credit card—you can withdraw cash like with an ATM card, but also earn rewards or cashback when making purchases directly with the card.
Virtual debit cards are electronic cards designed for online transactions, primarily for e-commerce or retail purchases. These cards have specified and often lower limits compared to physical debit cards. Additionally, virtual debit cards cannot be used at ATMs for cash withdrawals.
If your debit card or ATM card is lost or stolen, it's crucial to report it to the bank or issuer right away. You can contact the bank through their mobile app, NetBanking platform, or by calling their customer care number. It's important to ensure that your card is blocked immediately to prevent any unauthorized transactions. Some banks also provide services like SMS or Missed call service for blocking a debit card.
Debit cards come with various benefits including high cash withdrawal and shopping limits, free ATM withdrawals, and easy access to your bank account funds. Additionally, many debit cards offer perks across different categories such as cashback, lifestyle, travel, shopping, and insurance. You can choose a card that suits your needs and apply or upgrade accordingly.
Yes, both ATM cards and debit cards serve the same purpose of withdrawing funds at an ATM. Therefore, they are essentially the same thing.
Many banks provide virtual debit cards to encourage digital payments. Some of the leading banks offering these cards include SBI, Kotak Mahindra Bank, Bank of Baroda, and Union Bank of India, among others.
Debit card tokenization involves replacing the actual card details stored with merchants with a unique code known as a "token." According to new RBI guidelines effective from October 1, 2022, debit card information won't be stored on multiple platforms. To make a transaction, you'll either need to tokenize your card or manually enter the complete card details each time.
You can tokenize your debit card while making a payment on any preferred merchant app or website. During the transaction, you'll need to input your debit/ATM card details, including the card number, cardholder's name, expiry date, and CVV. After entering these details, you can choose the option "Save card as per RBI guidelines." To authenticate the transaction, you'll need to enter the OTP received on your registered phone number. Once authenticated, the merchant won't store your card details, and a token for your debit card will be generated to facilitate future payments.
