A complete guide to Debit card : Uses , advantage & disadvantage included .

What is Debit card ? 

A debit card is a plastic or digital card used to make purchases, without using money. A debit card can be issued in a retail location, over the Internet or by telephone. 

Uses of debit card :- 

This card could be used to make purchases in a place of business, an ATM, or even on-line at a web site. A debit card may also be used to make purchases at a card service provider's retail location.

Debit card

Advantage of Debit Cards: 

In today's competitive banking world, many banks are offering their clients incentives for debit cards use. 

These advantages may include

  1. reductions in ATM machines, 
  2. reduced interest rates, 
  3. travel rewards factors and 
  4. rebates at grocery and other retail outlets. 

Many banks also provide their customers an automatic $2.00 per dollar deposited into a savings account. 

Most of these benefits are available exclusively to customers of banks that issue debit cards.

Main & exclusive features of debit card : 

The main features of debit cards are both convenience and security. 

Debit cards are issued by banks and credit card companies, which are generally

  1. Visa, 
  2. MasterCard, 
  3. Discovery and 
  4. American Express. 

These banks compete among themselves for clients. Banks also provide added benefits and features to their customers such as ATM machines, online access, telephone services and gift certificates.

They generally charge a one-time administrative fee plus a minimum yearly charges.

Debit card special feature in india 

Issuers of debit cards in India have come up with different product options like Prepaid debit card, preloaded debit card, etc.. These product options enable customers to choose the best suited option for their requirements. 

How to gét a Debit card ? 

The process of debit card application has been simplified. Now online software can be made using any internet enabled computer. 

Online software for these cards could be produced free of cost too. Free internet assistance is also available for those who require help.

Most of the trades on prepaid debit cards arrive with no or low transaction fees. This can be beneficial for clients. As there are not many transaction fees, the customer doesn't need to pay heavy quantities of transaction fees. 

Customers have better chances of earning larger sum of money in the ATM machines as soon as they create transactions with those cards.

Prepaid debit card transaction :- 

Prepaid debit card transactions can be done through ATMs of the bank. There are numerous ATMs located in different places in the vicinity of India. 

It's possible for a customer to carry money in his/ her hands and also make ATM transactions from any stage of the nation. Almost all the ATMs in the country accept debit cards. 

This makes it possible for somebody to withdraw cash from any ATM for any purpose.

Many people are apprehensive about using a debit card for purchases online. There are many reasons for this anxiety. But the fear is unfounded, because most of the trades through ATMs and internet trades are at no charge. The major reason is insufficient knowledge about the pin.

Debit card pin information : 

In most of the card trades, the PIN is mandatory for all customers. The POS system of banks helps the consumer to enter the PIN by just making a call to client care services. 

A customer may make a telephone call when sitting in your home, even when he/ she is on the transfer. This usually means that a person can now do the credit card transaction from any place at any moment.

Debit card receipt :

For online transactions, the debit transaction receipt is issued to validate the debit or credit card transaction. 

The most frequently used transaction receipt format is YUV or EAN format. The majority of the companies charge a small fee for printing the reception. 

If you operate a company or have a business account with a bank, you can get a free printed transaction receipt from your financial institution.

Biggest advantage of using debit card :

Among the biggest advantages of utilizing debit cards is that there isn't any need to have a particular designated account for performing trades. 

You may use your regular credit card to make purchases and then deposit the amount to your account. 

Because POS machines are getting to be ever more popular, you can even use your credit card to make POS transactions. You can either use a POS machine in your home or at your office.

POS transaction : 

POS transactions are typically quite economical compared to debit card transactions. Even if you do not do debit-card trades all the time, you can still benefit from using a POS machine. 

As soon as you get started earning more, you can consider spending some of the cash that you earn on making more debit-card trades. If you're planning to open a merchant establishment, you can use a debit card for particular kinds of transactions. 

You must keep in mind that this option does not give you total control over the customers' transactions.

Disclaimer & last words - 

With a debit card, you'll have the ability to determine how much of your revenue goes to a business and how much goes to your merchant account.

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