Different Types of Debit Cards
Thus, compare the various credit cards, debit cards, and prepaid cards being available in the market before settling on one. One or a combination of the three can enable you to gain the flexibility you’re craving with the seamless access to the cash required to fulfil your daily activities. Recognizing what a debit card provides in terms of convenience and how it works will enable you to pick the correct card that suits your needs, and you must use it responsibly. Introduced by the National Payments Corporation of India under the domestic debit card scheme, RuPay debit cards are only accepted in India.
Let’s take a closer look at the best types of debit cards available to Indian consumers to compare and contrast. Maestro Debit Cards are similar to MasterCard Debit Cards in that they are accepted worldwide. Users with a Maestro Debit card can easily conduct online transactions within and outside of the country.
Warranty and Purchase Protections
Apart from these four issuers, some countries might have their country-specific debit cards that could be popular in those countries along with a few more. Some examples of the country-specific debit card issuers would be RuPay in India, UnionPay in China, and Maestro in the United Kingdom. Most Visa debit card types are accepted globally for online and electronic transactions. All the Indian banks that have partnered up with the international Visa payment system network offer this card, and its ATM network is found both in India and overseas. The numerous Visa debit card types come in diverse patterns and designs. With a debit card in hand, you can pay utility bills, withdraw cash from any ATM across the country, or simply transfer money when needed.
- It is an online Debit Card, and a popular one, available for both residents and NRIs.
- While debit cards don’t earn points or miles for each purchase, the accounts from which they draw funds may offer users perks in exchange for a certain number of transactions.
- One or a combination of the three can enable you to gain the flexibility you’re craving with the seamless access to the cash required to fulfil your daily activities.
- Maestro debit cards are very safe and protected by a very advanced security system.
- Bill payments made using the RuPay Platinum card are eligible for availing 5% cashback up to Rs. 50 per month.
It helps us to access the money directly from our bank account without physically visiting the banks and saves our time as now we don’t have to stand in queues. When encountering fraudulent transactions, the risks involved in the case of debit cards is comparatively less. This is so because, with debit cards, the funds in the account are at stake, but in the case of credit cards, the user’s potential liability is based on its entire credit limit. However, even debit card frauds can drain the individual’s account balance and pose greater harm to its finances. Speaking about the costs, perks, and protections offered by both these cards, they will vary according to the bank policies.
Once the bank verifies that the cardholder has the funds to make the purchase, its transaction will be approved. One can glance at the bank statement to note if the purchase is done or it’s still pending. If the transaction appears as pending, it means the bank hasn’t transferred the funds to the merchant, although the cardholder’s account is been debited. As soon as the bank transfers the funds to the merchant, the transaction will appear as approved. It eliminates the need for cheques and queuing at the bank for cash for long hours. In spite of UPI’s staggering growth in the past few years, debit cards have held their ground as a premium payment mode.
Your liability for fraudulent purchases is determined by the time frame in which it’s reported. Waiting too long to let the bank know that your card has been used for unauthorized purchases could result in you being held responsible for some or all losses. If the item was bought with a debit card, then the charge cannot be reversed unless the merchant is willing to do so. What’s more, debit card theft victims do not get their refund until an investigation has been completed.
– Debit Cards & Credit Cards
Credit cards involve the risk of overspending as in credit cards, and people need to pay the amount in the future. The banking sector of India has undergone an impressive digital revolution in the last two decades. Also known as plastic money, this card serves multiple purposes – it serves as an ATM card for anytime cash withdrawals and can be used to make online and retail store payments. Let us look at the different types of debit cards available in India. EMV is an acronym for Europay, MasterCard, Visa, and are the latest chip-based technology global standard cards across the globe for making card payments. All banks are replacing ordinary debit cards with EMV chips as it provides enhanced security features.
Ariel Courage is an experienced editor, researcher, and former fact-checker. She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street. The security code is usually a 3-digit or 4-digit number that is not printed on the card and is not part of the card number.
This debit card of SBI comes with both Visa and Mastercard gateway network. Don’t use unsafe online platforms- In today’s world, cybersecurity is becoming a major concern. Although there’s a range of options for online shopping, cyber safety isn’t guaranteed by each payment portal.
Are typically connected to savings accounts, although they can also be connected to a checking account. These debit cards cannot be used for purchases, but instead are used for financial transactions at your nearest ATM. Since a debit card is linked directly to a bank account, fraudulent purchases can quickly drain an account dry or lead to an overdraft. This cannot occur with credit cards since those are paid back at a later date. You should be aware of whether your card charges an annual fee, a foreign transaction fee, a balance transfer fee, a cash advance fee, a late payment fee, or a returned-payment fee.
Also, creating strong passwords and avoiding sharing personal information can help prevent unauthorized access to the account. It is one of the selected few cards that allow free ATM withdrawals from any bank’s ATM, around the world. Not only this but this Debit Card also provides complimentary movie tickets and access to exclusive airport lounges.
The type of debit card you select is entirely dependent on your needs, preferences, and the service you expect from the bank. Let’s now discuss thoroughly on different types of cards and its benefits in details by making different possible questions and their answers. which of the following types of debit card To pay with an EMV card, you must physically enter the card into the machine. Some machines also offer a contactless option with the smart chip. Contactless allows you to hold the card above the reader and pay without ever touching your card to the machine.
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. Prepaid debit cards can be beneficial for consumers who can’t qualify for a traditional bank account or who prefer to use a specific prepaid card because of its features. The Platinum Debit Card from SBI is available in Visa and Mastercard versions. Aside from the convenience of cashless transactions and ATM withdrawals, the card provides numerous benefits to customers.
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. Debit cards have reduced the need for carrying physical cash or checks.
It comes in two types- Cirrus Debit Card and Maestro Debit Card. 10 Best Bank for Savings Account in India 2023 – With Interest Rates Savings account is a type of financial instrument offered by several banks. The credit card limit is the maximum amount of money you can spend using your credit card.
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Avoid using the card reading instruments, which look damaged, mismatched, or appear to have an ill-fitting at any publicly accessible kiosks placed outdoor. Such kiosks might have hidden skimmers that can leak your debit card credentials to unauthorized sources. D. Master Debit Card- Master Debit Card is a type of card that provides secured and convenient access to funds.
Interest and Fees
These cards have higher cash withdrawal limits and higher transaction limits. Platinum debit cards are generally meant for customers who are interested in having high cash withdrawals, although there is a limit to the transactions. Any platinum debit card will cost Rs 200+ST, whereas regular debit cards are charged Rs 100+ ST. But, they also have good loyalty points to offer. So if you are a frequent debit card user who wants to enjoy good rewards, this card can be a good option for you.
SBI offers various debit card options to cater to the demands of its wide customer base. The bank also offers a 3D security service and provides secure transactions in collaboration with MasterCard and Visa. Visa debit card is a popular brand of debit card issued by Visa.
Best Debit Cards in India ( : Features & Comparison
The interest rate and the fees that the credit company charges are used to calculate your annual percentage rate . The higher the card’s APR, the more it will cost you to carry a balance from month to month. If you have multiple credit cards, it’s not a bad idea to have a primary one you use for most purchases and save any others for emergencies or specific purchases. As long as the customer reports the loss or theft in a timely manner, their maximum liability for purchases made after the card disappeared is $50. The Electronic Fund Transfer Act gives debit card customers the same protection from loss or theft—but only if the customer reports it within 48 hours of discovery.
