Debit card
A debit card is a payment card that lets you make secure and easy to purchases online and drawing money directly from your checking account. You're not borrowing money on your debit card, it is your own money which withdraw through your saving account. You can also use a debit card to access your cash at ATMs.
In addition to cash registers and ATMs, debit cards work with mobile payment platforms like Apple Pay, Samsung Pay and Google Pay, as well as with many money transfer apps such as Paytm and Phonepay App.
Types of Debit Cards in India
• Visa Debit Cards are issued with the bank’s tie-up with VISA payment services providing the Verified by Visa (VbV) platform for online transactions.
• Visa Electron Debit Cards are very similar to Visa debit cards but these cards do not provide the overdraft feature.
• Contactless Debit CardsCustomers can make payments with just a tap or wave of their contactless debit cards near PoS terminals, with the cards working on Near Field Technology (NFC) thereby making electronic payments safer.
• RuPay Debit Cards are introduced as a domestic card scheme by the NPCI, It facilitate online purchases and transactions on the Discover network and ATM transactions under the National Financial Switch network
Features of Debit card
Whether being used to obtain cash or to buy something, the debit card functions in the same way: It draws the funds immediately from the affiliated account. So, your spending is limited to what’s available in your bank account, and the exact amount of money you have to spend will fluctuate from day to day, along with your account balance.
Debit cards usually have daily purchase limits as well, meaning you can't spend more than a certain amount with them in one 24-hour period.
Debit card purchases can be made with or without a PIN. If the card has a major payment processor’s logo, it often can be run without one, just as a credit card would be.
By and large, debit cards don't cost anything extra: There are no annual membership fees or cash-advance charges.
However, they don't always allow you to escape fees completely: If you withdraw cash from an ATM that's not from—or affiliated with—the bank that issued your debit card, you may be well charged an ATM transaction fee.
A prepaid debit card is akin to a gift card: It allows you to spend a sum that's been loaded onto the card until the balance is used up. Some of them are refillable, so they can be used indefinitely, like regular debit cards. Unlike their regular cousins, though, prepaid debit cards often come with a passel of extra charges: monthly fees, transaction fees, ATM fees, reloading fees, foreign transaction fees—sometimes even a fee for checking your card balance.
Advantages and Disadvantages of a Debit Card
With debit cards, consumers are effectively making their purchases in cash—that is, with money they actually have, as opposed to money borrowed on credit. But they are considerably safer than cash. Every transaction made with a debit will appear on the account holder’s monthly statement, making it easy to "see where the money went."
And while lost or stolen cash is gone forever, a lost or stolen debit card can be reported to the bank, which can deactivate the card, remove any fraudulent transactions from the cardholder’s account, and issue a new card.
Debit cards are easier to get if you have poor credit—as long as the bank lets you set up an account, you're in—and you don't have to apply for them, as you do with credit cards.
Debit cards generally don't offer as many perks, or have as many protections against fraud, as credit cards. For one thing, if an identity thief gets into your actual bank account and withdraws funds, you lose the money immediately.
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