The Benefits of Using Debit Cards
A debit card is a payment card linked to a current/savings account and is mainly issued by banks. It is also called a bank card or a check card. Customers can use debit cards to withdraw cash from their bank accounts at automated teller machines (ATMs). They can also use the cards to make purchases, pay bills, and book tickets/services digitally. Read on to learn about the benefits of these cards.
What Advantages Do Debit Cards Offer?
Debit cards offer the following exciting benefits for users:
- Easy to use
Debit cards offer convenience. They can be easily swiped on point-of-sale (POS) devices to make payments at physical stores. For online purchases, the user just needs to enter the card details to complete the payment. Since the money is deducted from the user's bank account, debit card checkouts are instant. In addition, customers can use these cards to deposit cash via cash deposit machines (CDMs).
- Simple to get
Users only need a current/savings bank account to obtain a debit card. Some banks send the card and the personal identification number (PIN) to the user's mailing address. Most others, like Federal Bank, provide a paperless soft PIN. This is a green, environment-friendly initiative that helps customers set their debit card PINs through an ATM and is also more secure than sending the card and its details via post.
- Meets urgent financial needs
Debit cards can act as emergency funds. Users can easily use them at ATMs to obtain cash quickly. All they need to specify is their PIN, transaction type, and amount. Once they hit the Enter key, the ATM dispenses cash immediately depending on the funds in the account. Unlike credit cards, debit cards do not levy a high fee for ATM withdrawals, which means they meet urgent cash needs at a lower cost.
- Helps set a budget
Debit cards ensure customers stay within a budget and do not accumulate debt as they allow users to withdraw only the funds that are already present in their bank accounts. Hence, they discourage overspending and help promote a healthy financial strategy.
If a user has Rs.10 lakhs in their account, a debit card will only approve transactions below this amount and subject to the bank's guidelines. Many debit cards also enable users to set daily shopping and withdrawal limits for further financial security.
- Is secure
Users can receive mobile SMS and email alerts when payments and withdrawals are made using their debit cards. This way, it is easy to find out if the cards are being misused, and lost/stolen cards can be immediately frozen, thus securing the user's money from theft.
- Contactless payments
Contactless debit cards are safer and faster to use. They work like mobile wallets as users can simply hold/tap the card on a POS machine to make payments. Users need not enter a PIN or a one-time password (OTP) to complete their transactions successfully.
Closing Words
Debit cards are a handy alternative to carrying around physical cash and can be used for domestic and international transactions. Federal Bank provides Visa, Mastercard, and Rupay contactless debit cards. Users can earn reward points and enjoy exclusive offers such as airport lounge access, dining vouchers, partner discounts, and more. Apply for a Federal Bank debit card today and enjoy 24/7 customer assistance.