Plastic Money / Debit Card and its uses
As technology is advancing very rapidly, It's better to use Plastic money instead of paper money as nowadays. There are various types of cards available in the market issued by financial institutions to their consumer, but most importantly two are popularly known as Debit Cards and Credit Cards. We will discuss each card in detail.✍✍Debit Cards:
Debit cards are the cards used to the consumer against his or her saving account that means the consumer must have a saving account with that bank to have its debit card. The debit card is also issued to corporate entities against current accounts in the bank. When you swipe your Debit cards for purchases at the POS terminal, money gets deducted from your deposit account. So first let us understand what is Saving and Current account in the bank.
👀👀Saving Account :
It is a deposit account which permits limited transactions, and most suitable for people who are salaried employees or have a monthly income. Savings accounts earn interest at a rate of around 4% per year. The minimum balance required to maintain a savings account is usually very low.
👀👀Current Account
It is meant for daily transactions, and suitable for business personals who use to access their accounts frequently. The current Account has no interest in a deposit account and the minimum balance requirement in the case of the Current account is much higher as compared to saving the account.👀👀An overdrawing/overdraft facility
It is one in which individuals can withdraw more money from the account than it actually has in accounts, and this facility is offered only with a Current Account and not with a saving account.👉👉Types of Debit Cards:
It depends on the type of platform for payment linked to the card.👍Visa Card
It is a mostly used and popular type of debit card for online and electronic payments connected with the International visa payment system and issued by banks. The transaction is secured by a verified visa platform system. This card also has an overdraft facility. There are different types of Visa cards like Platinum visa etc.
👍Visa Electron Debit cards
These are the same as Visa cards but these cards did not have an overdraft facility associated with them.👍Mastercard or Maestro card
It is the most widely used card and the cardholder can access funds across the globe via MasterCard secure platform.👍Contactless Debit Card
Using this card, payment can be made just by tap or wave of the card on the POS terminal so making payment safer as it is based on Near Field Communication Technology (NFC).👋👋What is NFC (Near Field Communication) :
It is a short-range wireless connectivity standard that uses magnetic field induction to enable communication between devices when they're touched together, or brought within 4 centimeters of each other.👍RuPay Debit cards
It is introduced by India as a Domestic card under NPCI and payment is accessed by National Financial Switch Network.👴👴Features of Debit Cards
a) Can be used as ATM cards for transaction at ATM machines
b) Additionally can do online transactions plus can swipe at PoS terminals
c) It requires 4 digit PIN to complete transactions
d) It is linked to saving or current account of the customer so a real-time deduction of money from the account
e) No credit facility exists on debit cards
👀👀Safety guidelines for first-timer
a) Please keep your PIN and don't disclose it to anyone
b) Don't disclose PIN and other info to bank personnel as well because they will not ask for it and if someone is asking posing self as bank representatives that means you are talking to a fraudster so be aware
c) Don't leave ATM counter if your transaction is not complete and press cancel every time
d) Use ATM privately
e) Break the card and dispose of it, when not in use
f) Keep changing your PIN from time to time
g) Register for SMS/Email Alerts
Debit cards have no annual fees and also can be easily procured from the bank. But these cards also have some negatives as compared to Credit cards and those are like less protection, no cashback, fewer reward points, no credit score maintenance, etc, and finally and most important is that debit cards are more prone to online frauds.
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