Debit cards have changed the way of undertaking transactions. The rise of debit cards has provided us instant access to funds. These cards can be also used for paying bills or online purchases at domestic and international shopping websites. This wallet sized card comes with a horde of benefits.
A debit card is issued by the bank where the individual has a savings account. Debit cards are also issued to corporate entity. Such cards are linked to the current account. When you swipe your debit card for a transaction, the cash is ‘debited’ from your account.
There are various types of debit card. It is essential to understand the features of each card. This helps you to use your card optimally. It is also helpful to know the various financial instruments available in the market.
Types of debit cards in India
The types of debit cards in India depend on the type of payment platform linked to the card.
The following are some of the commonly available debit cards offered by the various banks in India.
Visa Debit cards: Visa debit cards are regarded as the most globally accepted debit cards for all kinds of online and electronic transactions. Such types of debit cards are issued by banks that have tied up with the international Visa Payment System network. Online transactions take place through the secure Verified by Visa payment platform. The cardholders also have an overdraft facility.
There are different types of Vis Debit cards. Usually, banks issue Visa Classic Debit Card, Visa Gold Debit Card, Visa Platinum Debit Card, Visa Signature Debit Card, and Visa Infinite Debit Card. Each card has its own unique features.
The VISA ATM network is spread throughout India and abroad.
MasterCard debit cards: MasterCard debit card fall within the popular types of debit cards. MasterCard is one of the world’s most accepted forms of electronic payment. With a MasterCard, you can access your savings or current account through the company’s SecureCode payment platform.
The World Debit MasterCard, the standard debit card and the enhanced debit card are some of the most popular types of MasterCard debit card. These debit cards are particularly popular for their service and excellent customer support. MasterCard also offers a host of excellent benefits and a rewards program.
RuPay Debit cards: RuPay debit card was introduced in India. Such types of debit cards are issued under a domestic debit card scheme by the National Payments Corporation of India. These cards are accepted only domestically. RuPay debit card can be used to make a variety of domestic transactions: you can pay for purchases on online and retail outlets as well utility bill payments.
These debit cards were especially launched to provide electronic access to bank accounts to the people who reside in smaller towns and villages. RuPay debit cards are issued by all major public and private sector banks.
RuPay is a great alternative to both MasterCard and Visa. The low transaction costs and easy availability even in rural areas makes RuPay an attractive option.
Contactless Debit cards: Contactless debit cards allow the payments to be made without swiping the card. Simply wave this card over the payment machine. The transaction is automatically processed. These debit cards offer a faster method of cashless transaction.
These debit cards work on the (Near Field Communications) or RFID (Radio Frequency Identification) principle. Through these technologies, the card is connected to the PoS terminal. Such types of debit cards are a very safe way of making electronic payments. You don’t have to hand over the card to the cashier. This prevents the cashier from duplicating or storing the details of your debit card.
Major banks in India such as State Bank of India, Axis Bank, and HDFC Bank issue contactless cards.
Visa Electron Debit Cards: Visa Electron debit card is very similar to Visa debit cards except that cardholders do not have an overdraft facility. These debit cards ensure that you do not overspend.
These debit cards can be used for cash withdrawal at domestic and international ATMs. No interest charges are levied when you withdraw cash using a Visa Electron debit card. Payments at PoS terminals for all kinds of transactions are also allowed. However, please note that Visa Electron debit cards are not accepted in Australia, Canada, United States of America and Ireland.
You cannot use a Visa Electron debit card to make offline payments in flights, trains etc., The reason is the inability of PoS terminal to confirm if funds are transferred in real time.
Most Indian banks such as Syndicate Bank, Bank of India and Bank of Maharashtra issue Visa Electron debit cards.
Maestro Debit Card: Maestro Debit cards are similar to the MasterCard debit card. These cards are accepted globally. You can use this card to withdraw cash in ATMs across the world. Payment for online purchases, and for transactions at domestic and international PoS outlets can be done through this card. Except ICICI Bank, this card is a popular choice for most banks including State Bank of India, Oriental Bank of Commerce, Bank of Rajasthan and Syndicate Bank.
Before you choose from the types of debit cards available, don’t forget to compare the different cards. This helps you to understand what each card offers, the fees charges, the services offered, rewards program, and the minimum balance requirements. However, make a decision based on your needs. Don’t be lured in by the benefits alone.
You should also ensure safety while using a debit card for any transaction. Ensure that a secured payment platform is used. It is very easy to fall in a trap leading to fraudulent activity on your debit cards.
FAQs
Is it possible to link multiple accounts to a single debit card?
Some banks in India give the option of linking several bank accounts to a single card. Check with the issuing bank if this feature is available on your card.
I was trying to withdraw cash from ATM using my debit card. I entered the wrong PIN twice. Is it possible that the bank will block my card due to input of wrong PIN?
As per the RBI guidelines, a bank would block a debit card after three unsuccessful attempts at an ATM. This is done to prevent any unauthorized or fraudulent transactions
Can I request for an overdraft facility on my debit card?
If your savings account has an overdraft facility, you can avail an overdraft on your debit card. However, note that some debit cards like Visa Electron do not allow any overdrafts.
Is it possible to obtain a personalized debit card in India?
Most banks in India offer a personalized debit card. Such card contains the photograph of the user. This is in addition to the basic details included in a debit card. Photograph of the user is included as an additional protective measure. It can help to prevent fraudulent transactions.
Is there any cost associated with maintaining a debit card?
Yes, as most banks charge issuance fees, ATM withdrawal charges, and annual fees for the use of debit cards.
Why are banks issuing chip-based debit cards instead of magnetic strips?
A chip card has a microchip embedded in the debit card. It is very difficult to tamper with a chip. This is an additional security measure. A chip based card can prevent fraudulent transactions from taking place. As per the present RBI guidelines, it is mandatory for all banks to issue chip based cards.
I have forgotten the PIN for my debit card. How can I regenerate it?
Most banks allow users to regenerate the PIN using net banking, mobile banking app, or calling the customer service number.
What is a PIN for a debit card?
PIN stands for personal identification number. When a debit card is issued to you, the bank provides a PIN. You are allowed to change your PIN. Any transaction using a debit card needs to be authorized with the PIN. This helps to prevent unauthorized transactions.
It is important to remember that PIN is your personal data. It should not be shared with others.
I have noticed that when I use my debit card on an online shopping website, there are two levels of authentication. Why is this required?
As per the current RBI mandate, all online debit card transactions need a second level authentication when a transaction is made. All the cards need to be registered for Verified by Visa(VBV)or MasterCard Secure Code to complete an online transaction. A transaction can be carried out only on those websites that are Verified by Visa or MasterCard Secure Code enabled.
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