Everything you need to know about your Debit Card
Debit cards offer convenience and security, allowing us to make purchases, withdraw cash, and manage transactions with ease. However, there are several important aspects to understand about debit cards to ensure their effective use.
Here are the key things you must know about your debit card.
What is a debit card?
A debit card allows you to access funds directly from your bank account. It serves as an electronic substitute for cash, enabling you to make purchases at various merchants or withdraw money from ATMs located across India.
Difference between Credit and Debit Cards
Unlike credit cards, debit cards are linked directly to your bank account, so you can only spend the available funds. Using a debit card means you are spending your own money rather than borrowing from a financial institution. This can be advantageous for avoiding debt but also limits your purchasing power to what is in your account.
Adhil Shetty, CEO, Bankbazaar, says, “A credit card, when used smartly, can give you several benefits and help you savour life better. These benefits include cashback, redeemable reward points, discounts and deals, curated lifestyle experiences, travel benefits and much more. On the other hand, debit cards help you withdraw and make transactions within the balance in your bank account. You cannot use more funds than what is already there in your savings account.”
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Withdrawal Limits
Debit cards come with daily spending and withdrawal limits. These limits are set by banks to protect you from fraudulent activities. Be aware of these limits to avoid any inconveniences while making purchases or withdrawing cash.
ATM Usage and Fees
Debit cards allow you to access cash from ATMs conveniently. However, be mindful of the fees associated with using ATMs that are not operated by your own bank. These fees can vary and may include charges from both your bank and the ATM owner, so it’s essential to choose your ATMs wisely.
Some debit cards offer overdraft protection, which allows you to complete transactions even if you don’t have enough funds in your account. However, be cautious of the associated fees and interest rates charged for using this feature, as they can accumulate quickly.
Keep Track of Your Purchases
Keep track of your purchases and review your bank statements to detect any unauthorized or fraudulent activities. Reporting any discrepancies to your bank promptly is essential for protecting your finances.
International Usage
Before traveling abroad, notify your bank about your plans to use your debit card overseas. Some banks may restrict international usage by default due to security concerns. Informing your bank beforehand can help prevent your card from being flagged for suspicious activity when used in a foreign country.
Card Security
Protecting your debit card and personal information is paramount. Keep your card in a safe place, shield your PIN when entering it at ATMs or point-of-sale terminals, and be cautious of skimming devices or suspicious websites that may attempt to steal your card details.
Lost or Stolen Cards
If your debit card is lost or stolen, contact your bank immediately to report the incident. Prompt action can help prevent unauthorised access to your account and limit your liability use your funds in your bank account.
By knowing these essential tips, you can make informed decisions when using your debit card, safeguard your account against fraudulent activities, and maximise the benefits of this convenient payment tool.