Important questions about Debit Card you should have answers to

Synopsis:

  • Debit cards offer a convenient alternative to cash, allowing immediate access to funds from your bank account.
  • Unlike credit cards, debit cards do not enable borrowing; you can only spend what you have.
  • Many debit cards come with complimentary insurance coverage and added security features like PIN protection.
  • While they may have fewer rewards compared to credit cards, some banks offer cashback and discounts.
  • There are fees associated with debit cards, which can vary based on the bank and account type.

Overview

In today's world, having a debit card is essential. It's more convenient than carrying cash and enables contactless payments for a smoother shopping experience. But do you know all the advantages your debit card offers in terms of both functionality and security? For instance, many debit cards in India come with complimentary insurance coverage of up to ₹10 lakh.

While all debit cards operate similarly across banks, they aren't all the same. The features and costs can vary significantly based on your account type and the partnerships your bank has established. Whether you're considering a new debit card or want to understand the benefits of your current one better, here's a quick overview of what to expect.

Common Queries Regarding Debit Cards

What is a Debit Card?

In its simplest terms, Debit Cards provide a means of paying for products and services as an alternative to cash. When buying something, the money is immediately taken out ('debited', in accounting jargon) from the bank account the card is linked to, as long as there's money in the account.

A Debit Card has two functions: a payment card and an ATM card rolled into one.

Is a Debit Card Similar to a Credit Card?

You'd be wrong if you think there's no difference between the two! A Debit Card allows you to spend money by utilising money already available in your bank account. Credit Cards, on the other hand, enable you to borrow money from the card issuer up to a certain limit to purchase items or even withdraw cash, for which you are billed later.


If your Credit Card is something you use and abuse too frequently for your own good, a Debit Card is a great alternative. With the latter, you spend only the cash you have in your account, forcing you to keep your spending habits in check, restricting your ability to lose control of your finances.


How Safe is a Debit Card?

A Debit Card is a pretty secure way to access your money. The bank's anti-fraud policy protects it – so if you lose it or someone steals your details, you can cancel/block it. You also need a

Personal Identification Number (PIN) to withdraw money from an ATM. Unless you've shared your PIN with someone, it's hard to misuse your account.

With an HDFC Bank Debit Card, there are additional layers of protection, which include:

  • PIN-based protection for all your store-based purchases
  • Online payments are made secure by 'Verified by Visa', 'Mastercard SecureCode', or the bank's own 'One Time Password' (OTP).
  • Zero Liability Cover for all your shopping at stores
  • Chip cards for added security.
  • The ability to proactively add transaction limits for certain types of charges and set up SMS/email transaction alerts


And for Online Purchases?

As far as possible, never use your Debit Card for online transactions. The protection against fraud is much lower if you use it, and disputes can be challenging to resolve. However, you must report any authorised transactions to the issuer quickly. This can minimise your liability under RBI guidelines.

A Credit Card is a much safer option for e-commerce.


What About Overdraft Facilities?

Most banks allow you the facility of an overdraft on your bank account. If you run short of funds before your next salary is deposited, you can still pay for life's staples using your Debit Card.

However, you must remember that an overdraft has interest charges and other fees attached to it.


Are There Cashback & Rewards Options Too?

You're unlikely to be offered the same rewards as the ones you enjoy with your credit card. However, most banks do have programmes for their customers. HDFC Bank has a wide-ranging Rewards Programme for their customers, including:

  • 5% CashBack
  • Discounts on fuel, shopping (at stores and online), travel, dining, entertainment etc.
  • Cashback on shopping throughout the year
  • Cardless Cash facility at HDFC ATMs where cash can be withdrawn 24X7, without a physical card
  • Up to five free ATM transactions per month
  • Air Miles.
  • Annual/Renewal fee waivers.

Banks that offer such a wide scope of benefits are few. Look no further than HDFC Bank to meet all your banking needs.


Are There Fees Attached to Having a Debit Card?

All banks have fees that go along with the Debit Cards they issue. However, the fees and other charges also depend upon your account type. These charges are associated with:

  • Annual fee / Renewal fee
  • Add-on card fee
  • Replacement card charges
  • ATM fees (local and international)

With over a dozen types of Debit Cards to choose from, HDFC Bank has a fee structure that is not only competitive but one that keeps your needs at the forefront.


Are There Any Downsides to Owning a Debit Card?

As the adage goes, there is never a free lunch. We've already mentioned using Credit Cards over Debit Cards for online purchases. There are a couple of other aspects to be aware of, too:

  • Credit History – Unlike a credit card, you cannot build a credit history by using a Debit Card.
  • Chargebacks – One benefit that can also be a drawback is that transactions are instantaneous, which means if something goes wrong – like a double payment – or you want to cancel the transaction, you don't have much time.

If this happens, you can request your bank to rectify the error, but it requires you to take the time and make the effort. However, if an ATM fails to dispense cash and your account is debited for a certain amount, it is reversed almost instantaneously in most cases.


Debit Card Transactions Through NetBanking

With HDFC Bank, you can use your Debit Card to do more from the comfort of your home using NetBanking. These include:

  • Debit Card upgrades
  • Setting your international & domestic usage limits
  • Instant PIN generation
  • Debit Card 'hot-listing'
  • Re-issuance of hot-listed Debit Cards
  • Linking your Debit Card to accounts

With most of your questions answered, say goodbye to the hassle of withdrawing cash whenever you need to shop and enjoy cashless, worry-free shopping with HDFC Bank Debit Cards.


You can easily apply for your HDFC Bank Debit Card here! New customers can get a new Debit Card by opening a new Savings Account while experiencing hassle-free banking with HDFC Bank. Existing HDFC Bank customers can get their Debit Card reissued within minutes here.

Read more on the different situations where Debit Cards are the best choice.