Banks provide a range of cards to satisfy everyone’s needs. Debit cards are among the simplest and most accessible types of cards. We will examine the benefits, and drawbacks as well as the different card types that are offered.
What is a debit card?
- It is a simple product given to consumers by the bank to facilitate cashless transactions. Unlike a credit card, there is almost no requirement to be a debit card holder. The only requirement is to open a bank account. Even students or children under 18 years of age are eligible to become cardholders.
- Once the card is issued it is directly linked to your bank account. Hence the amount of money you can spend or withdraw is directly linked to the amount in your account.
Merits
- They are the best alternative to cash. It may be used to make purchases in stores, online, or even by adding your card to an NFC payment app like Google Pay. Debit cards are the finest option for managing and controlling daily expenses due to their versatility in usage.
- Nearly all the advantages of a credit card are available on debit cards but without any debt. The majority of these cards give cashback and reward points, but since you may only spend what is in your account, you will never be in debt. This makes it safer to give to children as they won’t be able to overspend money. Additionally, you can establish a restriction on the amount that can be sent in a single transaction. This provides still another level of fraud prevention.
- There is no impact on credit score. A credit score is assigned in the case where money is borrowed in any way. In the case of the debit card, we don’t borrow money, rather we use what we have and hence your credit score remains unaffected.
Demerits
- There is no credit given. If you are in a situation where there is an urgency for funds debit card is of no use.
- Banks issue cards to all consumers as soon as they open an account. But only those who have a privilege or a premium saving account get a debit card for free. The remaining people with the basic saving account are required to pay annual maintenance fees irrespective of whether you use or don’t use your card.
- Credit cards offer fraud liability protection which safeguards you from online fraud. This does not apply to debit cards. In simple words, from a technological point of view, credit cards are safer to use for online activity.
Different types
1. Visa debit card
It is one of the most accepted cards worldwide. This card is often issued by banks that are affiliated with the global Visa payment network. This card also allows users to use an overdraft facility. There are several card types produced for Visa debit cards. Some of those include classes, platinum, and gold. These cards each have unique features that differ from bank to bank.
2. Master debit card
The master debit card is the most popular worldwide. You can access both your current account and your savings account through it. The customer support, rewards program, and services offered by these cards are highly renowned.
3. Rupay debit card
This was introduced by the government of India. Under their debit card program, National Payments Corporation of India, generally known as NPCI introduced the Rupay card, an indigenous product. This card can only be used domestically. The primary goal of introducing this card is to compete in the global market and offer a more affordable and convenient card for India’s small and rural areas.
4. Maestro debit card
In terms of its application and rewards system, it has a structure that is comparable to that of the master card. It can be used internationally and domestically as well as in ATMs. Most major banks, except for ICICI Bank, issue this sort of card.
Conclusion
A debit card is your best option whether you’re searching for a simple method to go cashless or a practical approach to keep track of your costs. Additionally, depending on the sort of card you use, you might earn a sizable sum in rewards and cashback.