What is Debit Card?
Get detailed Debit Card information – Uses, benefits, & security measures
- A Debit Card is an EMV chip-based payment card.
- It is linked to your bank account and helps you make cashless payments.
- You can use it to make both offline and online payments.
- When you swipe your debit card, funds are debited from the linked account in real-time.
- You must not share your debit card PIN or write it down anywhere as a security measure.
Modern banking has evolved to a whole new level today. But the credit for revolutionising the banking industry undoubtedly belongs to Credit or Debit Cards. By swiping your card, you can make all kinds of offline and online purchases, make bill payments, and do so much more. Let us decode what is debit card in this article.
Debit Card Meaning and Explanation
ATM-cum-Debit Cards are plastic payment cards that your bank issues when you open an account with them. It is linked to your Savings, Current, or Checking Account. When you swipe your debit card, funds are directly debited from the linked account and transferred into the payees’ accounts. These cards typically come with a Europay, MasterCard and Visa (EMV) chip embossed on them. Also known as an ATM card, you can use it to withdraw cash at ATM kiosks and vestibules.
Debit Card Usage
Having explained What is Debit Card, here are its many uses:
- Banks offer Debit Cards in partnership with major Credit Card brands such as VISA, MasterCard, etc. Due to the partnership, you can use your Debit Card wherever these branded cards are accepted.
- You can use the debit card to pay for your purchases at brick-and-mortar stores. You have to enter your Personal Identification Number (PIN) or security code to authenticate such transactions.
- You can also use your Debit Card to pay bills or shop online. Simply enter your Debit Card information such as your name, card number, card expiration date, and CVV (Card Verification Value) code. You must authenticate such transactions by entering the One Time Password (OTP) the bank sends on your registered mobile number and/or email id.
Features and Benefits of Debit Cards
Besides knowing Debit card meaning, you should be aware of its unique features and benefits such as:
- Debit Cards are quick, contactless, and convenient payments tools.
- They enable you to make real-time payments from your linked account.
- Banks offer discounts, offers, and cashback on certain Debit Cards
- You can use Visa and MasterCard Debit Cards abroad by enabling international usage.
- You can load digital wallets using your Debit Card.
Debit Card Security Measures
Banks take the necessary consumer protection measures like PINs and OTPs to ensure your funds are protected. As the cardholder, you must ensure that you do not share your debit card information, such as your PIN, Card Number, CVV, etc., with anyone. Do not write down these details on your phone, computers, or rough pieces of paper in your wallet. If your Debit Card is stolen or misplaced, contact the card issuer to block your card or freeze your account.
A Debit Card is like carrying your bank in your pockets. You can swipe it anytime you need to pay for something. Ensure you check the daily transaction and withdrawal limits prescribed by your bank. You can enjoy a world of benefits with your Debit Card.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.