Debit cards have been around for a long time and have made banking easy. There is no need to visit the bank to withdraw cash, and the credit goes to plastic money. You can use the funds in your account using a debit card, which makes it convenient to help you with the purchase. Moreover, you don’t have to worry about liquidity either. You have greater liquidity, safety and usage because of the debit card. We are sure you already know what a debit card is and how to get it. But do you know all the advantages & disadvantages of debit cards? Go ahead and check them out in the section below.
👍 Advantages of Debit Card
Let us now look at all the benefits offered by debit cards.
- Merchant Transaction & Cash Withdrawal – The most important feature of the debit card is that it lets you withdraw cash, and at the same time, it also allows you to pay directly at merchant POS. This eliminates the need to carry cash or the need to withdraw cash when you need it. A debit card has certainly made it very convenient to shop and pay bills. The car also supports online payments.
- EMI on Debit Card – If you have funds in your account, you can also use a debit card to set up an EMI for your purchase. Many online websites have started offering this service in India, considering the popularity of debit cards. This includes expensive purchases like phones, consumer durables and other such things.
- Safe to Use – Debit card in India is protected by a PIN. So, it becomes very safe to use a debit card. No one can’t use a debit card without a PIN. For online transactions, an OTP is sent to your registered mobile number, which eliminates the chances of fraud while using the debit card.
- Easily Accepted – Mastercard, Visa and Rupay issue debit cards in India. The best thing about debit cards is that they are easily accepted everywhere. Some merchants still don’t accept credit cards, but there is never an issue when you have a debit card with you.
- International Usage – Many people question whether they can use a debit card for international usage. The answer is that you can use the debit card for international usage if it is enabled for the same. The debit card can be used directly at POS, or it can be used for withdrawing funds from an ATM outside India.
- Cashbacks & Schemes – You often get a lot of cashback and schemes on the debit card. For example, Apple mostly runs a cashback scheme on HDFC Debit & Credit cards where it offers a cashback on the iPhone. These schemes can help you save money, and remember that the money saved is money earned.
- Easy to Get – Getting a credit card is document-intensive, but this is not the case with a debit card. You need to submit an application, and your debit card will be delivered per the standard lead times. The whole process of getting a debit card is very easy. Moreover, if you are opening a new account, the bank may issue you an Insta Kit, which comes with a pre-issued debit card.
👎 Disadvantages of Debit Card
There are also some drawbacks to having a debit card. You can check them out below.
- Lacks Benefit of Credit Card– The fact is that credit card gets more offers and schemes. If you have a credit card, you will get a better reward program and a better cashback scheme. Moreover, a credit card allows you to lend money. These features are missing in the debit card, which is one of the biggest disadvantages.
- Lacks Safety – Debit card needs a PIN and OTP, but it still lacks safety. It is difficult to dispute a transaction since the settlement has already happened. If you have a credit card, the bank will go over and beyond to settle the dispute. In debit cards, the money is already deducted from your account, which is certainly a bigger risk.
- Transaction Fee– When withdrawing cash using a debit card, you get a certain number of free transactions. After that, you will be charged a transaction fee for every transaction on your ATM withdrawal.
- Higher Liquidity – The debit card offers you higher liquidity, which can be a problem. It makes you spend more money; sometimes, you may dig into your savings because of the debit card. This is a problem since you may spend more money than you initially intended.
Also Read: Credit Card Pros and Cons
Debit Card Frequently Asked Questions
Q1. How Safe A Debit Card Is To Use For Online Purchases?
Ans: Debit cards are quite the same, but just make sure to use a secure network, look for the padlock symbol, and keep an eye on your account for any unusual activity. With these steps in mind, you can enjoy online shopping without worrying about your finances.
Q2. Is It Possible To Use Debit Cards Internationally?
Ans: Well, some debit cards are just for domestic use only, but you should check with your bank whether you can use your debit card for international money withdrawals or not. If not, you should apply for a debit card that you can use internationally and worry-free.
Q3. Is There A Limit To How Much I Can Spend With My Debit Card In A Day?
Ans: Yes, there is usually a daily spending limit for debit cards. Think of it as your own personal spending allowance, a way to make sure you don’t overspend. You can always check with your bank to see what your limit is, so you can plan your shopping accordingly.
Q4. Which Type Of Bank Account Do I Need To Get A Debit Card?
Ans: Most banks offer debit cards to customers with savings accounts as well as checking accounts. But this can also vary from bank to bank, so you should check that with the bank people first.
Q5. What Is A Contactless Debit Card And How Does It Work?
Ans: A contactless debit card is a very convenient way to carry out a transaction. With just a wave over the card reader, your payment is processed in a flash. It uses near-field communication (NFC) technology to make payments fast, easy, and completely contact-free.
Q6. How Can I Secure My Debit Card?
Ans: You can secure your debit card in the following ways.
- Set a transaction limit for the domestic transaction. You can set a limit of Rs 5000 or whatever you think is safe for you.
- Never write the PIN anywhere on your card, and never share it.
- Ensure that no one is watching you while you are using the ATM.
- Never share OTP and other card-related information with anyone.
- If you have lost your card, block it immediately so that no one can misuse your debit card.
This was all about the debit card. If you have a bank account, ensure you also get a debit card for the same account. It will make it very easy for you to do transactions. Take care of the basic things, and it will remain safe for you to use the debit card.