Debit cards are widely used in India for a variety of reasons. When you use it for purchase or withdrawal from ATM, it pulls out money from your bank account instead of charging to your line of credit.
Based on your account type, bank will fix a per day withdrawal limit above which you can not withdraw from your account by using ATM machine.
In this article we will be discussing 5 important things in addition to ATM withdrawal facility that you should know about your bank’s debit card before using it.
Purchase by using Debit card
Like credit card you can also purchase or make online transactions by using your bank debit card.
It’s linked to your bank account by which money that you spend on your debit card will automatically get deducted from your bank balance.
In case you lost your debit card then notify your bank and ask them to block it.
From 1st of December 2013, you can also make international transaction through your debit card up to a limit of Rs. 50, 000 as per RBI’s guidelines.
Withholding your Payment
In case of having problems with a transaction which you have not done or any services that are charged, for which you do not wants to make payments then in case of credit card, you can withhold the payments, which is not possible in debit card. Until the issue is resolved, you will not be getting back your money.
Debit Card PIN
Bank’s debit card will require a PIN for making transaction at groceries and other merchant outlets. From December 1, 2013, transactions at merchant outlets are compulsorily required to enter your ATM PIN while making payment.
Using PIN at open places like grocery shops is very risky as your PIN can be seen by other peoples standing behind you or in front of you.
Use in other ATMs
In addition to using your debit card with the issuing bank’s ATM, you can also use it in other bank’s ATM for withdrawing money. Up to 5 withdrawals per month will be free and then ATM withdrawal charges as applicable are to be paid.
If you are holding a priority saving account then your bank may allow you to make unlimited withdrawals from other bank’s ATM. For more further information contact your bank.
Replacement of credit card
Debit and credit cards are accepted at the same place. If you have a limited usage and want to avoid heavy charges and interest then you can use your debit card as a replacement of credit card in purchasing groceries and other stuff.
If you have chances of crossing the bank balance then before taking a debit card make sure that your bank charges less towards overdraft fees.