Debit Card

What is a debit card?

Plastic cash, that’s what it is. Didn’t get it? To put it simply, a debit card is a small plastic card that enables you to have access to your bank account and conduct both cash and cashless transactions easily. It can help you withdraw your money via the ATM machines and you can even swipe it at various stores to make a cashless transaction.

Why use a debit card?

It’s simple, for security. While your cash may have the risk of getting misplaced or stolen, your card is the key to all your cash that is safely deposited in the bank. Further, even if you misplace the card, you can instantly get it blocked and replaced so that your money isn’t misutilised. You lose a card, you don’t lose your money. You lose cash, you lose a lot.

Are there different types of debit cards?

The type of debit card actually depends on certain parameters.

Let’s take a look at these, briefly.

Contactless Debit Card: Make transactions just with a tap. These debit cards use either the near field communication (NFC) technology or the radio frequency identification technology (RFIT).

Magnetic Stripe Debit Card: This is the most common technology. This debit card has a magnetic band made of tiny iron particles and can be swiped on a machine with a magnetic reading head.

Chip and Pin Debit Card: This is the most secure form of debit card. Most of the cards nowadays combine this technology with a magnetic stripe one. Chip and Pin debit card transact data in an encrypted format. It requires a PIN or Personal Identification Number for each transaction.

Prepaid Debit Card: You may be familiar with the technology if you use a Forex Card. A prepaid debit card is not linked to any bank account. Instead, you can load money into it by paying in advance, and thereafter use the money.

International Debit Card: This is the same as your normal debit card, the only difference being, you can use it overseas to transact and withdraw money, for an additional fee. The fee depends on the bank.

Virtual Debit Card: These are not very popular. These are online debit cards that can be used only once and are not physical. Again, usage and availability depends on the bank.

Business Debit Card: These are basically corporate or business cards that are issued to people for business transactions.

Visa Debit Card: Visa is a North American payment platform. These debit cards are issued by it and have a VbV or verified-by-visa platform.

Visa Electron Debit Card: This is a sister card of visa debit card, without the overdraft facility.

Master Debit Card: This is a secure way of accessing your funds. Master Debit Cards are of two types; Maestro and Cirrus.

Maestro Debit Card: This is a type of Master Debit Card and requires a PIN for access.

RuPay Debit Card: This debit card is launched under the scheme National Payments Corporation of India (NCPI).

Depending on the bank you choose, there are also other categories of debit cards. These categories provide offers on the basis of salaries.

What are the various types of fees associated with debit cards?

Debit cards, like every other financial instrument, come with a set of fee and charges. The rates, however, vary from one financial institution to another. Here is a list of some common charges.

Different Types of Debit Card Fee

• Annual Maintenance Fee
• Card Replacement Fee
• Personalization Fee
• Domestic Transaction Charges
• International Transaction Charges
• Card Replacement Fee
• PIN Regeneration Fee