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Debit Cards in India



What is Debit Card?

A plastic payment card which allows a cardholder to transfer money from their bank account at the time of purchasing things and goods is known as Debit Card.

It is mostly similar to the credit card but the difference is that in credit card, cardholder can borrow money from the bank to purchase goods and other things while in a debit card the amount is directly transferred from the cardholder’s bank account to the payee bank account when performing a transaction.

One of the best benefits of having a debit card is that it eliminates the need to carry physical checks or cash to make purchase. Specially, a debit card is used to make daily goods and things as of its daily purchase limits. By using debit card, it is not possible to make a large purchase in a single day.

Tracking Payments with Debit Cards

A debit card gives a facility their customers to track the details about all the transaction they made by using a debit card. All the transaction details will appear on the cardholder’s account as for the monthly statement. This facility makes easier for cardholder to keep and track of their purchase.

Breaking Down Debit Card

A debit card serves dual purpose, it allows the cardholder to withdraw amount from their current or savings account via ATM or other cash-back machines. It allows their customers to debit money with or without a personal identification number (PIN).

Does a Debit Card Cost Money?

Debit cards are very easy to use and free of cost or sometimes very inexpensive but depends on how you use them. Here are some ways to avoid paying if the debit card costs money.

Debit cards are interesting ways of checking accounts and preserving those accounts sometimes require a monthly fee of roughly $10 to $15. In some banks, these fees are waived if you maintain a certain minimum monthly balance or want to authorize direct deposits into your account. 

You would also want to consider other typical baking fees, such as overdraft fees. They can pack u a hefty punch if you attempt to withdraw or spend more money than you have in your account. 

Debit cards also work in the same way as ATM cards, so they can be used even when the bank is closed. When you use ATMs within the network, there will be no charge for this facility and if you use some other network you can face a fee of about $4 to $5 to withdraw your money after some attempts.

-> You may pay a small amount of fee for each transaction if you use some other bank network.
-> Also, when you use a 4 digit PIN instead of your signature then to the amount gets deducted.
-> The reason is that the transaction is routed via the banking network in place of a Visa or Mastercard network.

Prepaid Debit Cards vs. Traditional Debit Cards

Till now we were focusing on traditional debit cards that are connected to your bank account. There is a lot of prepaid debit card available there and it’s important to understand that they are very different:

With the traditional debit cards pay for the purchased things with the amount of money that is present in your linked bank account. With the prepaid debit card, firstly you will have to load money onto the card before using it.

If you choose into your bank’s overdraft protection service, the bank of yours will cover you of you make a purchase with your traditional debit card that exceeds the available amount of money in your account, however, this service includes a hefty fee. With a prepaid debit card, you will not be able to make a purchase if you don’t have enough money present on your card.

Traditional debit cards don’t cost anything fee if used directly, but there can be costs associated with maintaining your bank account or choosing PIN transactions over signature transactions. Prepaid debit cards usually cost a lot of fees: Activation, reloading and monthly maintenance fees are common and can differ from one card to another.