A debit card is a plastic card that makes it simple for consumers to access their bank account funds. It is frequently used for cashless transactions, merchant payments, ATM cash withdrawals, and internet transactions. Debit cards are one of India’s most popular financial products, with various varieties catering to clients’ varying demands. This article will explore debit card options available in India.
List of Contents
- What Exactly Is a Debit Card?
- 6 Debit Card Types in India
- Advantages of a Debit Card
- How to Apply for a Debit Card in India?
What Exactly Is a Debit Card?
A debit card is a form of plastic money or plastic cash. You can use it to purchase items when you lack cash. Typically, banks provide savings account customers with a debit card that is connected to their accounts. Your bank account statement will show all transactions made with your debit card. The statement assists you in keeping track of your card’s spending and transactions.
In addition, debit cards are issued in partnership with organizations such as RuPay, Mastercard, and Visa. The 16-digit number on the card is known as the debit card number. The digits are divided into two halves. The digits 0 through 6 indicate the card issuer, Mastercard, or Visa. The numbers 7 through 16 identify the issuing bank, account type, etc. In addition, the card features an expiration date on the front and a three-digit CVV number on the reverse.
6 Debit Card Types in India
1. Visa Debit Cards
Visa debit cards are perhaps the most widespread debit card in India and worldwide. They are a kind of debit card. These cards are accepted worldwide for all types of online transactions and payments. Visa cards are issued by banks affiliated with Visa’s international payment system network. When you swipe your Visa card, your online transaction is processed via verified by Visa, a secure payment platform. Most banks in India commonly issue visa electron debit cards.
2. MasterCard Debit Card
MasterCard debit cards are also quite popular, although their network is less widespread than Visa’s. However, most of India’s major banks are linked to the MasterCard network. They can be used to pay for local and international online purchases, with payments handled through the SecureCode Payment network. MasterCard’s customer service network and rewards and cash-back programs are famous for their excellence.
3. RuPay Debit Cards
RuPay debit cards, issued by the National Payments Corporation of India as part of the domestic debit card program, are exclusively accepted in India. This kind of debit card can be used for various domestic operations, including paying for internet purchases, swiping the card at retail locations, and paying utility bills. The NCPI created RuPay to provide electronic access to India’s most rural and remote regions. Additionally, they provide specific features such as accident insurance. Significantly, these cards are mainly offered by public sector banks in India.
4. Contactless Debit Cards
Nowadays, banks produce a special debit card called the contactless debit card. It enables you to make payments without swiping the card. Contactless debit cards operating on the Radio Frequency Identification (RFID) or Near Field Communications (NFC) principle allow for quicker transactions. These technologies connect your card to the POS terminal, allowing you to perform secure electronic transactions.
5. Visa Electron Debit Cards
Generally, debit cards issued by Visa and debit cards issued by Visa Electron are relatively comparable, except that neither card supports the overdraft feature.
6. Maestro Debit Cards
Maestro Debit Cards are debit cards that are accepted worldwide. This card can be used worldwide to withdraw cash from ATMs. With this card, you may pay for online purchases and retail transactions at locations worldwide.
Advantages of a Debit Card
It is a more convenient option than cash.
It is lightweight and simple to use. With a debit card, you do not need to carry cash or a checkbook, making it a safe travel alternative.
It enables you to shop or pay online.
Debit cards can also be used on e-commerce platforms to make online purchases or pay for services like health insurance, hotel reservations, movie tickets, and airplane tickets.
You can get more rewards.
With banks offering attractive features such as bonus points, cash-back incentives, free insurance coverage, and various ways to redeem accrued points, debit cards make the entire shopping experience more profitable.
It can help you manage your money more effectively.
As the cardholder can only spend their money within account restrictions, this encourages careful spending. Since transactions are documented, it also facilitates improved budgeting and money management.
It provides greater security.
If you lose your card or it is stolen, you can immediately block it with the support of customer service to protect your bank account funds.
How to Apply for a Debit Card in India?
Since Debit Cards have become so common as a payment option in recent years, you need not apply for them individually. When you create a savings account with a large bank, you are often issued a debit card. Thus, you do not need to apply individually for a debit card. Nevertheless, if your bank does not offer these services, you may still make an application for a debit card at the bank location nearest you. In addition, you can also apply for a debit card online by the following steps:
- You may apply for a debit card at the personal banking or retail financial sector of your bank’s website.
- After submitting your information and the necessary papers, you must wait two to three days to receive your card.
- You will also receive personal information, such as a Personal Identification Number or PIN, along with the card.
- This PIN should be used for all transactions and payments. Once you have your card and PIN, you can use your card whenever you want.
To summarize, a debit card allows you to pay online and in person with a card rather than cash. Nevertheless, in India, banks issue debit cards randomly. You have no option about the debit card supplied to you. However, in rare instances, you can request a specific debit card type. If you need to use your debit card overseas, you can request Visa or MasterCard instead of the RuPay debit card supplied by your bank. Finally, you can use your debit card to make online and offline purchases effortlessly.
A debit card allows you to spend only the funds in your bank account, but a credit card allows you to borrow funds from the bank. With a credit card, the borrowed amount must be repaid with interest, however with a debit card, you can only spend what you have.
Yes, most debit cards issued by banks can be used for international transactions. You may be required to activate your card for foreign use and pay additional costs for currency conversion and transaction fees.
The daily withdrawal limit for debit cards in India varies by bank and card type. It can range from 10,000 rupees to one million rupees or more. Some banks additionally offer the option to tailor the daily limit to the needs of the consumer.
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