The economy is going cashless and thus, the importance of cashless instruments has increased. Thus, Debit Cards have become an important part of our daily lives. They not only allow you to withdraw cash seamlessly from your bank account but also make online transactions easily. Let’s understand the Debit Card meaning in detail.
What is Debit Card?
A Debit Card is a card issued by the bank where you have your bank account. This card allows you to make transactions in your bank account. It allows you to withdraw cash, make online as well as contactless transactions and even deposit cash through machines in your bank account.
What is Debit Card number?
Having understood what is a Debit Card, let’s understand its another component. The Debit Card number is the 16-digit number that you will find on the front of your Debit Card. Each Debit Card number is a unique number that represents the card held by you. The Debit Card number consists of two parts:
- The first 6 digits of the Debit Card number constitute the Issuer Identification Number, also known as the Bank Identification Number. This number helps determine the name of the company i.e., Visa, MasterCard etc.
- The remaining 8 digits represent your bank account details i.e., the name of the card issuing bank, type of card issued and other identifiers that are specific to your bank account.
What is an ATM number?
Wondering what is ATM card? Well, Debit Cards are also known as ATM Cards. Debit Cards also contain ATM numbers i.e., a 4-digit unique PIN (Personal Identification Number) that you can use to validate your ATM transactions. Eventually, you can set the PIN of your choice that is easy to remember. Debit Card PINs can be reset seamlessly.
How does a Debit Card work?
In case you wish to use your Debit Card offline, you will need to use the card machine. After the amount is reflected in the machine, you just need to enter the PIN. You will receive a notification when the transaction is completed. You have the option to make contactless payments using a debit card equipped with NFC (near-field communication) technology. This enables transactions by simply tapping or waving the card, eliminating the need to swipe it.
In case you are using a Debit Card online, then you need to enter your name, 16-digit card number, card expiry date and the CVV (Card Verification Value) number to authenticate the transaction. After the details are entered and the transaction is initiated, you will receive an OTP on your registered mobile number. You have the option to securely save your card details as a token, allowing for convenient one-click payments without repeatedly entering your card details. Tokenization involves replacing your existing card details with a unique code, enhancing security to safeguard sensitive data against unauthorized access and mitigate the risk of fraud.
In case you wish to withdraw money from your account, you should visit your nearest ATM, insert your Debit Card in the machine, select the options, enter the amount and then enter the PIN. You will receive the cash and then you can withdraw your card from the machine.
Debit Cards: Pros and cons
Let’s understand Debit Card advantages and disadvantages:
Advantages of Debit Card
- Debit Card make it really convenient to conduct both, online and offline transactions.
- You can withdraw cash from the ATM of your own bank without any charge.
Disadvantages of Debit Card
- Debit Cards do not allow you to withdraw more than your existing bank balance.
- ATM card usage charges may be levied if you withdraw cash from ATM of other banks over a certain number of times.
What is Debit Card vs Credit Card?
As Debit Cards are linked to your bank account, it allows you to spend only up to the amount present in your bank account. Whereas, when we define Credit Cards, they come with a credit limit. You can use the limit and pay it back after the bill is generated.
What’s the difference between regular Debit Cards and prepaid Debit Cards?
Debit Cards are linked to your bank account and so the amount gets deducted from your bank account. Whereas, in the case of prepaid cards, you need to reload your cards and then you can spend from the balance in your prepaid cards.
Debit Card fees and charges
The fees and charges associated with Debit Cards vary depending on the bank that issues the card, typically involving an annual fee. Nevertheless, some banks offer complimentary debit cards with specific types of bank accounts to enhance customer benefits.
One of the best Debit Card examples is Axis Bank Debit Card. They come with attractive features like varying transaction limits, rewards, cashbacks and dedicated offers with select partners. You can also enjoy exclusive discounts and complimentary tickets. If you are an Axis Bank customer, you should check out different Axis Bank Debit Cards now!
Also Read: Virtual debit card: The future of card payments
FAQs
Q1. Do Debit Cards have purchase protection?
Some Debit Cards provide purchase protection. However, you need to check whether the Debit Card service provider allows the same.
Q2. Can I get a Debit Card online?
Yes. Most banks and financial institutions provide Debit Cards online as well so you can select the cards of your choice.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
