The invention of Debit cards in 1966 changed the manner of payment to a greater extent. Commonly known as a payment or ATM card, debit cards are the most reliable, secured, and essential part of our daily lives. A debit card gives us the facility to pay our bills online, for withdrawing cash immediately and function as cash or personal checks. We can access debit cards at the merchant’s place or ATMs to deduct some amount from our savings or current account. It changed the method of making payments or undertaking transactions. You don’t require to have foreign currency while traveling to other countries. Your debit card gives you the comfort to make purchases and withdraw cash in the foreign currency. But the deducted amount from your account will be in rupees. A debit card also works as an alternative to cheques and cash. People believe debit cards to be better than credit cards as it helps them to avoid overspending.
Advantages of Debit Cards:
Reduce overspending- Credit card enables you to purchase anything, even if you don’t have the required funds in your account. This facility also has some disadvantages, such as the overspending of money. Debit cards help you to secure yourself from any debt and avoid overspending as the money deducted directly from your bank account. Easy approval- Lack of good credit score and a higher interest rate makes it difficult to get a credit card. But there are no such requirements for getting a debit card. You just required to have a current or saving account. Charges- Maintainance of credit cards requires you to pay late fees, annual fees, interest rates, etc. The charges applied to have a debit card are significantly less than having a credit card. Secure method- Debit cards are more secure than credit cards and offer the best protection to their customers against fraud. Maintain convenience- Writing checks every time you need to do some transaction is very time-consuming. It only takes a few minutes to complete a transaction with a debit card. Available balance in your account reflects immediately after the purchase. Best alternative- After getting the debit card, you don’t need to carry cash with you every time. It is the best alternative for a cashless transaction. Rewards- Debit cards also avail rewards like credit cards. Many online sites give cashback offers if you purchase from a debit card.
Different type of Debit Cards in India
1. Visa Debit Cards
It is one of the most popular debit cards available in the Indian market and belongs to an American multinational finance company. Its popularity makes the majority of Indian banks to tie-ups with Visa. The reason behind this popularity is the enhanced security services provided by Visa Debit Cards in online payments. The customer care services available by Visa Debit cards are spread globally and works 24 hours. The online reservations and purchases become easier by the special facility of 24-hour Concierge Services provided by Visa. The globally spread network, 24 hours payment gateway, and enhanced security services offered by Visa makes it the most convenient Debit card.
2. Visa Electron Debit Cards
The features are similar to the Visa Debits Cards. But the Visa Electron Debit Cards do not avail of the feature of overdraft. People demand these debit cards as they are easy to get with minimum cost. This debit card has a limit over the transactions (such as users can spend only up to a fixed balance) and helps us to avoid overspending. It imposes minimum or no charges while withdrawing cash. The risk of fraud involved is comparatively low in these debit cards.
3. MasterCard Debit Cards
It is one of the biggest card providers in the Indian market and is an American based finance company. These cards are popular for their fast and secured services, active customer complaint response, offers, and benefits. The globally spread service network makes you enjoy uninterrupted services in abroad.
4. Contactless Debit Cards
It allows you to make transactions easily by waving the card over the machine. According to RBI regulations, if a person makes a transaction of less than Rs. 2,000, it can be processed without a pin. More than 60% of payments made in the Indian market is less than Rs. 2,000. This fact encourages many banks to offer Contactless Debit Cards. They are safe to use as the transactions made by the cards are secured by Near Field Technology. They are easy and convenient to use for small purchases.
5. RuPay Debit Cards
RuPay Debit card gives you the facility to make risk-free transactions at PoS outlets and secure your online payments. In 2012, RBI launched this debit card in the domestic market. As they are easily available in rural areas and offer minimum cost transactions, people consider it to be the best option among other debit cards. In comparison with the multinational competitors, Rupay Debit Cards offer more flexibility and convenience.
6. Maestro Debit Card
Except for ICICI Bank, every bank in India offers Maestro Debit cards. The availability of services in more than 1.5 crore PoS outlets is the reason behind its popularity. They are easy to use, flexible, fast, and impose low-cost transaction charges. People opt for these cards as they offer an advanced security system and global services. Recommended: 6 Key Differences Between Debit Card & Credit Card For choosing the best Debit Card, you should compare the different types of debit cards available in the market. You should also consider your need, interest, available offers/rewards, charges, minimum balance requirements, and other important information.
