Debit Card Advantages And Disadvantages Pdf

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ATM stands for Automated teller machine and is a computerized system that enables the customer to do financial transactions easily.

Advantages and Disadvantages of ATM (Automated teller machine)

Debit cards are one of the most popular instruments these days for cashless transaction. You can use the cards at both retails and online stores for any transaction.

You can also use the same card to withdraw money from the ATM. But are there any disadvantages of using a debit card? Debit card can be easily obtained: When you open a savings or current account, most banks issue a free debit card. Make sure that you fill in the necessary documentation to receive your debit card. Very convenient to use: One of the advantages of a debit card is that it can be swiped for transactions as well as withdrawal of cash from ATMs.

But a debit card keeps you in check as it is linked to your bank account. You are only able to spend the amount that is in your account. Easily accepted: Debit cards are accepted widely all over India and at international destinations.

Make sure to authorise international transactions by simply calling your bank. These debit cards can be used for cash withdrawal at international ATMs too. Earn rewards: Offers are not restricted to credit cards alone. Using your debit card too can help you gain rewards and cashbacindia offers.

Several online and retail outlets offer cashback offers for every purchase made on the debit card. The points can be redeemed at any time to either purchase products from an online catalogue of the bank or to earn shopping vouchers from various brands.

No credit allowed: A debit card is linked to your bank account. There is no possibility of making any transaction on credit. All transactions and withdrawals are limited to the balance available in your account. Difficult to dispute fraudulent use: It is easier to fraudulently use your debit card. In case someone steals the details of your card, especially the PIN and CVV, the chances of a fraudulent transaction are very high.

It is difficult to dispute such transactions with the bank. Additional fees on ATM withdrawals: Every bank offers you a limited number of free ATM transactions and other non-financial transactions per month at the branches of other banks.

The card number: this is a digit number. The card number is unique and is not the same as the bank account number. The Logo: The card has the logo of the bank that has issued it. It also has the logo which determines the type of debit card it is: Visa, Mastercard or RuPay logo. Customer service number: The toll-free number is printed on the back of the card. You can call this number in case of any questions or to report the loss or theft of your card.

The signature bar: A signature bar is provided on the back of the card. It is important that you sign the bar as soon as you receive the card.

This can help you to prevent fraudulent transactions. Some merchant retail outlets do not swipe the card unless the signature is verified. This number needs to be provided at the time of making online payments. It provides an additional layer of security to the card. PIN stands for personal identification number. When a debit card is issued to you, the bank provides a PIN. You are allowed to change your PIN. Any transaction using a debit card needs to be authorized with the PIN.

This helps to prevent unauthorized transactions. Coronavirus Essential school hostel students test positive in Maharashtra; Pfizer-BioNTech shot could help end pandemic, says study. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol. But there are disadvantages too. To know, click the link above. Moneycontrol News. Related stories. SBI annuity scheme vs fixed deposit vs recurring deposit: Investment cheat sheet.

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Debit Card Advantages and Disadvantages

Nowadays, consumers all over the world are increasingly using their debit cards for paying day-by-day purchases instead of cash, because such cards are easy to use, can be an effective budgeting tool and provide numerous benefits. Along with the possibility to access your account funds at anytime it also removes the hassles and fees associated with writing checks as payment. It will be useful to say that debit cards are also considered to be a safer form of payment as to access the account funds a code is required, while checks or cash can be easily stolen. Debit cards are very easy to handle and manage. They are accepted worldwide and can be used at millions of places, over the phone and on the Internet. Debit transactions are deducted immediately from your account and can be clearly visible on your monthly statement.

Debit cards are one of the most common forms of payment used in the world today. These are cards that look identical to credit cards, which are linked directly to your bank account. When ever you make a purchase, the funds are taken directly from your account, resulting is a simple and quick transaction. There are some spectacular benefits from using a debit card as your form of payment, but some negative things to consider as well. Extremely Convenient The biggest draw for debit cards is how simple they are to use. Since the payment is taken directly out of your bank account, where the money already exists, it can be done instantly.


Debit Cards · Like an ATM card for immediate withdrawals of cash · Like a check when buying an item. The money used to pay for the transaction is usually.


Using payment cards for your business

Debit cards are one of the most popular instruments these days for cashless transaction. You can use the cards at both retails and online stores for any transaction. You can also use the same card to withdraw money from the ATM. But are there any disadvantages of using a debit card?

Debit cards are also known as cheque cards. Debit cards look like credit cards or ATM cards but operate like cash or a personal cheque. Debit cards are accepted at many locations including grocery stores, retail stores, gasoline stations and restaurants.

Benefits of Using Your Debit Card

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Most people are used to using a debit card these days and many even use it on a daily basis, but there are pros and cons. Debit cards do have their critics though and not all financial experts think that over-reliance on a debit card over other methods of payment is always a good idea. Indeed like many things debit cards have their advantages and their disadvantages. Here are some of the most important explained:. There is certainly quite a lot to be said for the convenience of using a debit card as well as some distinct benefits:.

Even though debit cards have become widely used, many people are unfamiliar with their advantages and disadvantages. Debit cards look like credit cards, but function like cash or personal checks. This content has been provided by Practical Money Skills and is intended to serve as a general guideline. Arvest Education Center. Debit Cards Even though debit cards have become widely used, many people are unfamiliar with their advantages and disadvantages.

Debit cards are the most convenient way of spending your money instead of carrying cash all around and then worrying about losing the same. Debit card is plastic money as it is quite often referred to as and is similar to a credit card but is linked to your bank account. When you make any purchase, you are supposed to swipe your card and the money is directly debited from your bank account. Though it is similar to credit card, but in this case, unlike a credit card, you cannot spend more than you have in your account and thus you do not increase your credit score. It functions in two ways.

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3 Response
  1. Charlotte B.

    Getting this type. The biggest advantage of a credit card is the flexibility. You can Another disadvantage is that very few debit cards have rewards programs of any​.

  2. Ticiana O.

    CREDIT CARD PROS. • Credit cards enable you to make purchases even if you don't have the money on hand, allowing you to choose to pay them off at a later.

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