Debit cards are a common product of any bank. They are linked with the account that banks offer to customers. Usually debit cards are issued for savings and current accounts so that the users can withdraw money from the ATMs known as Automated Teller Machine. The money that is available as a credit in your account can be withdrawn without much hassles. However, there is a limit to such withdrawals on daily basis which is set by the banks. This limit is based upon your account with the bank and the kind of relationship you have with them. Let us look at it in detail.
A debit card is a plastic payment card issued by banks and financial institutions to their customers so that they can use it to withdraw money from the ATMs or use it for online or merchant swipes for any kind of payments. It is easy to use and can be handy always. It ensures you do not roam around with loads of cash in case if you need to. Just swipe it at any outlet that accepts debit cards and you are sorted for payments. The money is deducted from your bank account linked to the debit card and you need not worry about making a payment to either the merchant or the bank after the transaction. The process is simple and easy to use. It is a substitute for cash and can be useful for all users.
Debit cards are like credit cards in looks but act like a personal or cash card. It would only function if there is a limit in the card account. There are many advantages of a debit card. Let us look at a few of them.
Just like there are advantages of a debit card, you would have disadvantages as well. So, let us look at it in detail.
Debits cards can be used across the globe with a few guidelines to be taken into consideration. Let us look at them in detail.
Prepaid cards are reloadable cards used for payments to any merchant or outlet. It can be used to transfer cash or pay bills and even withdraw cash from ATMs. All you need to do is keep the card funded always so that it can be used uninterrupted. It is powered by Visa, Mastercard or American Express. There are many types of prepaid cards available in the market. You can choose them as per your requirement and use them as per your needs. Any card that does not stop you from accessing the outlets or merchants with minimal or no charge on the card is the best prepaid car for you.
Debit cards are now traditional in nature can be used in many ways. You can either use the magnetic strip at the back of the debit card to swipe it and then enter your PIN to verify the user and complete the transaction. Other alternatives are chip enabled card which need not be swiped but dipped into the machine. You would still need to enter the pin for such transactions. Earlier you had to sign on the receipt to authenticate it which could pose a problem and risk the fraudulent transactions. These days you can also use the wi-fi enabled chip cards which need not be swiped or dipped but just placed on the machine to get the transaction going on to be approved. In such cases you would not need a PIN to verify the transactions.
Debit card is a cash card which can be used only when there is cash fund available in the account. It is not accessible when the fund balance is zero or lesser than the amount you wish to swipe. The other bank cards such as credit cards work on credit basis. There is a limit assigned to that card which can be swiped whenever the card holder wants. This card is not linked to any account for debit transactions. It is a credit given to the card holder so that they can swipe whenever they wish without waiting for the account to be funded with cash. A debit card is good for users who do not wish to swipe unnecessary transactions and then search for any payments to be done. If you have a balance only then will you be able to use it. If you have the funds to swipe for a transaction, then why should you go in for a credit and add to your expenses.
Other types of cards such as prepaid cards or online account cards are also easily available in the market. Free prepaid debit cards are a great way to keep on using for all the transactions. It just needs a refill like your smart phone recharges and you are ready to swipe your prepaid card at any of the outlets that accept them.
You can get a debit card from any bank or financial institution that offers you an account. As and when the account gets active, your debit card is issued with a PIN to verify the transactions. This debit card is available in many types and is also affiliated with many merchants and vendors who co-brand it for better benefits to the customers. Such cards when used at specific outlets offer benefits and discounts such as cash back, EMI, spot discount, future usable discount coupons and much more.
In case if your card is stolen or lost, you should immediately inform the card issuer. This would help you to be safe from any fraudulent transaction. Many debit cards have an insurance on them so that when such a situation arises, you can be safe from any losses that occur on your card. When you inform the card issuing institution, you would be assured about the card being blocked immediately. You would also be issued a new card on the spot which would be delivered to your registered address. Alternatively, you can also take a temporary card from the bank or financial institution so that your work or transactions do not get hampered.
You can use a PayPal debit card for your daily transactions. These cards are issued when you open a PayPal account online. They are issued to you just like an institution issues a debit card. You can use it at any outlet just like you use Debit Cards
Your debit cards can be powered by any payment processing company. Usually debit card visa enabled helps you for all transactions. But you may also get a mastercard or amex card payment processor.
Q. Do I get benefits like credit card offers on my Debit Card?
A. Yes, you can get offers just like your credit card does. All you need to do is be vigilant on when such offers roll out by card issuers.
Q. Do I get accounted for all swipes in an ATM?
A. Yes, all your transactions in an ATM are accounted. So, you need to analyses your transactions to ensure that no extra fees are charged for over use of cards at ATM.
Q. Are there limits on my daily spends?
A. Yes, your card has a limit on daily spends and withdrawals. This is set by the card issuing institution or banks depending on your relationship with them. You can also change such limits from time to time if you request them about it.
Q. What should I do if the card is worn out or not working?
A. If your card is not working properly or is worn out, you can give a call to the institution or the bank and they would replace the card to give you the right working card.
Q. What if I forget my PIN?
A. In case if you forget your PIN, then give a call to the bank or institution and get it reset. With the advent in technology, you need not wait for the bank or institution to revert to your request. You can do so, using the many online options available. You need to input certain details to ensure it is your account and your PIN can be verified.
Q. Can I check a balance on my account using Debit Card?
A. Yes, you can go for a minimum balance check on your account using the debit card at any ATMs.
Q. Can I make bill payments using my Debit Cards?
A. Yes, you can make bill payments using your debit cards. It can be done using the online option or swiping it at the merchant outlet.
Q. Can I transfer funds to another bank using my debit card?
A. No, you cannot transfer funds using your debit card. However, it can be done using your account linked to the debit card and the card can act as a verifying point.
Q. Can I use my debit card without any interruptions?
A. Yes, you can use your debit card without any interruptions until it is funded well. If the card becomes invalid due to validity period, it can be reissued for a future validity date.
All such details and information would help you to use your debit card in all aspects and make a good use of it always. Make sure you preserve your card for any kind of transaction in future.