A debit card is a convenient banking instrument facilitating customers to make secure payments to merchants and institutions directly from their accounts. Debit cards enable a wide range of cashless transactions for various financial transactions.
Know what a debit card is, how it works, its types, eligibility requirements, fees, benefits, and more.
Debit card is an electronic payment card issued by a bank or a financial institution to its account holders. The users can make electronic payments online or offline using a Point of Sale (POS) terminal or card swipe machine. When a payment is made with debit cards, the recipient of the payment is paid directly by the bank accounts associated with the card.
Debit cards are issued when a person opens a savings or current account with a bank. They are also commonly referred to as ATM cards. They can be used for cash withdrawals at ATMs or kiosks, swiping for in-store purchases, or making secure online payments. They are also highly convenient for international travel, eliminating the need to carry physical cash. However, they do not have the option to borrow funds or get credits.
The various debit card benefits are as follows:
When you open a savings, current, or salary account with a bank, it automatically issues a debit card. However, if you do not receive a debit card upon opening an account, you can request the bank to issue a debit card of your choice against your account by filling out the card request form or submitting the card issuance form through the Internet banking portal.
Once you receive the card, you will need to activate it and set a PIN. You will be required to enter this PIN to complete the process securely for every transaction or cash withdrawal.
Payments can be made from a debit card offline through a POS or card swipe machine provided by the seller or institute to which you want to pay money. The debit card needs to be inserted or swiped into the machine.
The amount is entered in the machine. After the amount is entered, you will need to enter your PIN to authorise the transaction. A notification will confirm the successful completion of the payment.
Debit cards with NFC (Near-Field Communication) technology allow contactless payments. Here there is no need to enter the PIN. The payments can be made by tapping or waving the card to the machine.
In order to make online payments via debit cards, you must select the method of payment as card payment on the payment portal. Next, you must enter your name, 16-digit card number, card expiry date, and CVV (Card Verification Value) for verifying the transaction.
After you have entered the information, an OTP will be sent to your registered mobile number for authentication. After you enter the OTP, the payment will be completed. You can also keep your card information safely stored via tokenisation, which substitutes your card details for a unique number. This maximises security with no unauthorised access possible and fewer threats from fraud with faster one-click payments.
You can withdraw money from your account using a debit card by visit an atm. Insert your debit card to the ATM machine in the goven slot. Enter the desired amount, input your PIN, and collect your cash. Retrieve your card from the machine after colloecting cash or when the machine prompts your to remove card.
Each bank issues various types of debit cards, each having different features. Various types of debits cards are provided below.
Visa debit cards offer international acceptance, allowing consumers to make domestic and foreign transactions. The cards are issued by banks or financial institutions affiliated with Visa Payment Network. They are secure and convenient means of accessing funds in-person, online, or abroad.
Some Visa debit card options include:
MasterCard debit cards are accepted globally and can be used for ATM withdrawals and online purchases. Transactions made with these cards are directly debited from your bank account. They also provide detailed monthly transaction records.
Some options include:
RuPay debit cards, developed by the National Payments Corporation of India, are a domestic payment service applicable only to transactions within India. Compared to other international card providers such as Visa and MasterCard, RuPay charges a lower processing fee, and transaction times for RuPay are also much faster. RuPay cards can only be used for domestic ATM withdrawals and online payments.
Various types of RuPay debit cards include:
With Contactless debit cards, users can carry out transactions of up to a certain limit (e.g. Rs. 5,000) without having to enter their PIN. RFID and NFC technologies are used, and with a contactless-enabled POS terminal, cashless payment can be made by tapping or waving the card.
Maestro debit cards available for use all over the world. They can be used for online transactions and ATM cash withdrawals like MasterCard debit cards. Funds can easily be accessed and are also recognised internationally regarding secure payments.
Fees and charges associated with debit cards can vary depending on the bank and the specific card type. Below are the common charges applicable to debit cards in India:
Certain eligibility conditions applying to savings and current accounts are required for an individual to qualify for a debit card. The other requirements are as follows:
The documents needed to open a bank account also apply to obtaining a debit card, with no additional documents required. Here is a list of documents required for a debit card include:
An example of a debit card is the Axis RuPay Platinum Debit Card which comes with various attractive features such as a high transaction limit of up to Rs. 2,00,0000, discounts on e-commerce platforms and food delivery apps, persona; accident insurance cover, and lounge access at airport.
A debit card PIN (Personal Identification Number) is a unique number that secures your payment. This PIN is required for making online payments, in-store purchases, and withdrawing cash from ATMs using your debit card.
Typically consisting of four digits, the PIN acts as a password for making payments through the debit card. Customers can set a PIN that is easy to remember but difficult for others to guess.
Your debit card acts almost like cash in your hand, though more safer and convenient. Depending on your immediate location, in the case your card is lost or stolen, please do not panic and contact your bank right away.
You can call the bank’s customer service number and block it. You can even block your card via the mobile app or online portal. The bank may also freeze the card to prevent unauthorised use in case of its misplacement.
When your debit card is lost or stolen, you need to block your card immediately. After your card is blocked, you need to write an application for the issuance of a duplicate debit card. You can visit the bank branch and write a lost debit card application, submit it to the bank officials, and request a duplicate debit card issuance. You can also apply for a duplicate credit card online through the Internet banking portal.
A debit card is like having instant access to your bank account funds wherever you go. It allows you to make payments for various transactions, such as shopping, hotel bills, e-commerce purchases, bill payments, etc. You can make secure payments with the debit card PIN.
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2. How to Activate an ATM or Debit Card?
3. What Is It & How to Know CVV Number on a Debit Card
4. ATM Withdrawal Limit
5. What is White Label ATM
6. How to Unblock an ATM card?