Debit card is a plastic payment card that deducts money directly from your account. Debit cards can be used buy goods or services both online and offline or to get cash from ATM. Debit cards helps you to reduce cash transactions instead can use card online and offline both to perform the transactions. But some times while using debit card may incurred some charges like withdrawal charges, insufficient fee charges, SMS alerts etc.
How a debit card works
Debit card is linked directly to your bank account. It looks like a credit card but you can use money which is available in your bank account. Where as in credit card money can be utilized up to the limit given by the bank. In debit card the amount of money that you can spend determined by the amount of funds in your account.
In debit card you are using your won funds , soo like credit card no need to bother about total amount due and minimum amount due etc. But same like credit card you will get options like EMI on debit card facility which is called as consumer durable loan on debit card. While using debit card offline like merchant outlet and ATM you need card in hand with PIN, But where as for online transactions you should have card number, CVV and Expiry details to perform the transaction.
Using Debit card you can set daily limits and monthly limits for both online and offline transactions. Domestic and international transactions enable and disable can be done from your end only. All the cards issued will come with international transactions disable status by default for security purpose. After receiving the debit card you can change all these things based on your requirement.
How to change Debit card PIN
While sending the debit cards to the customers all banks will provide manual also to set PIN, Online banking credentials and T&C details of the debit cards and features. Debit card PIN can be changed either online and offline. Offline Debit card PIN change is through ATMs and Online through Net banking or through website of the banks. Some banks Provide through IVR also to change PIN number.
Debit card Fees
Generally Debit cards do not have fees like Cash advance fee, Late fee and issuance fees. But there are some potential fees applicable on debit cards as follows.
ATM withdrawal charges: Some of the Debit cards will be provided with Limited withdrawal facility based on the location and banks. When ever the number of limits crossed then the bank starts to deduct the fee for additional withdrawals. This withdrawal fee range between Rs. 25-30.
Debit card replacement charges: When customer lost the debit card of card damaged then bank will send the new card, for this bank will charge to customer some amount which is called as card replacement charges.
Foreign transaction fee: When customer used the debit card for international transactions then bank will charge to customer to convert currency which is called as foreign currency markup fee. In general FCY charges are 3.5% of the transaction amount.
SMS Alerts: When ever customer perform any transaction bank will send that message to the customer to make him understand that money deducted from His/her account. For sending this messages banks will charge to customer some amount which is called as SMS alert charges.
Debit Card vs Credit Card
Many banks provide both credit cards and debit cards, So customer may get confuse about the same. For example banks provide MASTER card debit card and MASTER card credit card, VISA Debit card and VISA credit card. So we should know about the difference between the debit card and credit card, then only we can use these cards effectively.
With Debit cards you can use only the money available in your account. where as in credit card you can use the money up to the limit given by the bank. With debit card you can withdraw the money from ATM and you can use the card for online and offline transactions, But in credit card you can do online and offline transactions only. If you withdraw the money from ATM using credit card then withdrawal charges applicable along with interest on the withdrawal. In debit card no minimum due and total due late fee concept , But in credit card statement date, minimum due , Total due and late fee concept will come because bank given permission to use the bank’s money with certain time period to repay back the same. Both debit and credit cards will have EMI option to purchase any online and offline products, but interest and processing fee may vary from debit card and credit card. In both credit and debit card foreign currency mark up fee applicable when customer does the international transaction. Both debit and credit card will have Name on the card and CVV, Expiry date mentioned on the cards.
