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The Pros and Cons of using Debit Cards

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Following the digitisation drive and the demonetisation by the Modi-led Government, the number of citizens in the country resorting to using plastic cards - debit and credit cards - has spiked dramatically over the last year and a half. In fact, the Reserve Bank of India released a report saying that just in the month of January 2018, over a billion transactions took place in the country using debit and credit cards which amounted to more than a trillion rupees. The cashless drive in the country has resulted in citizens - some out of force and some voluntarily - resorting to carry out most of their day-to-day transactions via plastic cards, UPI transactions and e-wallets. While the usage of debit cards has been around for quite a while now, now citizens more and more are making the best use of this cashless mode for transactions. While there are numerous benefits that come with debit cards, there also some drawbacks of using them at POS terminals and on online portals - and this is just because of the ever-increasing frequency of fraudulent techniques to steal the money of customers. That said, let’s get into the pros and cons of using debit cards and what you should keep in mind if you decide to make a transaction either at a POS terminal or online using your debit card.

The Pros of using Debit Cards

Customers holding debit cards are at the receiving end of the below listed advantages:

  • For those holding debit cards, there is no requirement to carry physical cash, which is quite a secure measure of making transactions. There’s no possibility of your money getting lost or stolen in this way.
  • Using a debit card at POS terminals will result in faster transactions and reduce your time in a queue.
  • Apart from using a credit card, when it comes to spending using a debit card, one can spend only up to how much he/she has in their bank account and not more. There is no paying back system and interest over the money borrowed and so on.
  • Customers are offered a debit card when opening a bank account. In most cases, the fee is waived for the first year of holding the card.
  • A customer holding a debit card at no time has to face penalties and pay dues and so on, as whatever is in the bank account of the individual can be used.
  • Now, for high-valued transactions, customers can break the amount to be paid in EMIs - just as one can do with a credit card.
  • If there is a requirement for cash, one can make a withdrawal from any bank ATM across the country and it is completely free for withdrawals from the same bank ATM. for withdrawals from other bank ATMs, the debit card holder is granted 3-5 free withdrawals in a month.
  • With every purchase made using one’s debit card, the card holder will earn points that can be redeemed in the form of movie tickets, travel tickets, discounts and so on.
  • For certain cards, customers are offered fuel cashbacks, dining discounts, travel discounts and so on.

Cons of using Debit Cards

Debit card holders might face the below listed disadvantages somewhere down the line:

  • If by chance you are charged for a transaction but it doesn’t happen - either a recharge or payment of bills or to purchase a product online - it will be a difficult process to get a reimbursement.
  • Using your debit card at other bank ATMs will be chargeable after a certain number of withdrawals. The charge in most cases is quite steep.
  • In some cases, redeeming the reward points might prove to be quite a hassle and most cases the the third-party site where one can redeem the points won’t work.
  • Debit card transactions have no effect on one’s credit score as with credit card transactions. To avail any type of loans, customers need to avail a formidable credit score - anything above 750, and debit cards do not have anything to do with this regard.
  • Fraudulent techniques such as skimming, phishing, SIM swap and so on have put debit cards at risk and have questioned its security. Now, if a fraudster manages to duplicate the details of the debit card, in most cases, the money might be stolen forever. Approaching the bank to invest the case and getting a reimbursement or an insurance coverage for it will certainly be quite a task. The biggest drawback being that if one’s card details have been duplicated, the entire money in one’s account is susceptible to fraud. On the other hand, if it happens that the money in your credit card is stolen, then only the money that has been loaded on the card is susceptible to fraud. And if it does get stolen, then since it’s the bank’s money, the bank will do everything to get the money back and investigate the case. In most cases, the money stolen wouldn’t be your burden as with in the case of a debit card.

FAQs

  1. Do I need to keep the same PIN that the bank has given me when I first receive my debit card?
  2. No, in fact, as soon as you receive the PIN from the bank, the first thing that you need to do is to change the PIN for security reasons. It is important for customers to change their PIN frequently to enhance the security of their account.

  3. What should I do if my debit card is lost or stolen?
  4. If your card is stolen, the first thing that you need to do is to make sure that you block your card. You can do this either by calling the bank’s customer care or by doing so via your internet banking account.

  5. What happens if the money in my account is withdrawn for some unknown reason?
  6. If the money for some reason has disappeared from your account, then you have to report the case immediately to the bank. If required, you would also need an FIR from the local police department to register a case of fraud with the bank.

  7. What are the debit card transaction charges for withdrawals from other bank ATMs?
  8. Customers are allowed between 3-5 withdrawals from other bank ATMs in a month. Post that, every withdrawal is charged a certain fee - but this varies between banks.

  9. Does my debit card have a positive effect on my credit score?
  10. Debit card transactions have no effect on your credit score.

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The Pros and Cons of using Debit Cards Reviews

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  • Kotak
    "Worst bank ever"
    KOTAK MAHINDRA BANK
    0.5 0.5/5 "Unacceptable"
    Itâ??s not even worth one star rating. This is the second time I had applied and got an atm card and itâ??s again showing itâ??s various way to not trust again. After few months the card will start declining wherever I have to pay, will say that the mpin is wrong even if itâ??s right, if you want to pay through google or paytm also it wonâ??t work. This was the last time I got any card from this bank.
    Was this review helpful? 238
    , bangalore
    Reviewed on Mar 15, 2020
  • YES Bank
    YES Bank
    "Good"
    YES BANK
    0.5 4.0/5 "Great!"
    I think its nice to apply, it has been very fast and easy let's see what happens next if its open means I'll be very much happy person, pleas let me no soon that I can be a customer of this bank I had pan card permanent account number and I didn't have addar card though.
    Was this review helpful? 232
    , hyderabad
    Reviewed on Mar 20, 2019
  • Kotak
    "Better"
    KOTAK MAHINDRA BANK
    0.5 4.0/5 "Great!"
    I am having a Platinum Debit card from Kotak Mahindra Bank. The daily withdrawal limit is sufficient. I don't get any benefits on the card but its easily accessible everywhere. I got a hidden charges of 150 rupees which was debited from my account. There is no charges for other ATM swipes and there is no limitation.
    Was this review helpful? 254
    , mumbai
    Reviewed on Jan 28, 2019
  • Kotak
    "Worst Kotak 811 services"
    KOTAK MAHINDRA BANK
    0.5 0.5/5 "Unacceptable"
    Opened an account in December 2018 not received any call from customer care for document completion till yet also visited the nearest branch and no action has been taken . Worst services of this bank . Even the executive and staff has not been responsible and their behavior is also very rude.
    Was this review helpful? 261
    , new delhi
    Reviewed on Jan 16, 2019
  • YES Bank
    "Good"
    YES BANK
    0.5 4.0/5 "Great!"
    I think its nice to apply, it has been very fast and easy let's see what happens next if its open means I'll be very much happy person, pleas let me no soon that I can be a customer of this bank I had pan card permanent account number and I didn't have addar card though.
    Was this review helpful? 168
    , bangalore
    Reviewed on Oct 03, 2018
  • YES Bank
    "SUPER BANK"
    YES BANK
    0.5 5.0/5 "Blown Away!"
    I've been using the YES BANK Edge credit card for a while. The Value of the points are really good. I've already accumulated more than 15000 reward points. I am really impressed with the card and their services. I never had any issues with them.
    Was this review helpful? 141
    , hyderabad
    Reviewed on Sep 19, 2018
  • YES Bank
    "What to write? You can write a review about any Loan produc"
    YES BANK
    0.5 5.0/5 "Blown Away!"
    awesome great job i like your services i feel happy u provided help to need a urgent way tnq so much tnq bankbazar first time i am online visitor i cant explain how much i m happy bankbazar i would like too u say thnku bankbazaar your service is too much fast rapid
    Was this review helpful? 107
    , bangalore
    Reviewed on Mar 11, 2018
  • Kotak
    "Good Bank"
    KOTAK MAHINDRA BANK
    0.5 4.0/5 "Great!"
    I have a Kotak Bank i opened through Online portal. It is Very Easy to Open .Zero Rupees Charges.I ordered for a Debit card of kotak bank i got it delivered.Kotak App is Very User Friendly to Everyone.Zero balance maintain No Extra Charges..Quite Good App
    Was this review helpful? 171
    , bangalore
    Reviewed on Feb 16, 2018
  • Kotak
    "Decent Credit Card"
    KOTAK MAHINDRA BANK
    0.5 4.0/5 "Great!"
    I have a Salary account with them and the bank has offered a complimentary Credit card on the basis of this account. They have given me a Credit Limit of Rs.2.5 Lakhs, which I felt is quite a good one to have. One thing which let me down over here is their high interest rate. Also an added advantage is, they have good reward points system available with them.
    Was this review helpful? 120
    , chennai
    Reviewed on Jan 23, 2018
  • Kotak
    "Good"
    KOTAK MAHINDRA BANK
    0.5 4.0/5 "Great!"
    I am using domestic debit card of Kotak Mahindra Bank. The daily withdrawal limit was 25,000 rupees which was satisfactory. I am using this debit card for the last six months. There is no charge for other ATM swipe. ATM facilities are good and enough.
    Was this review helpful? 119
    , navi mumbai
    Reviewed on Jan 04, 2018
  • Kotak
    "Good service"
    KOTAK MAHINDRA BANK
    0.5 4.0/5 "Great!"
    Within 4days of time I got the car loan from Kotak Mahindra bank. The customer support is good with Kotak mahindra bank. The rate of interest which they have offered was low, when compared with other banks. The required loan amount has been disbursed and I am happy with it.
    Was this review helpful? 120
    , hyderabad
    Reviewed on Oct 16, 2017
  • RBL Bank
    "Ratnakar Bank Debit card "
    RBL BANK
    0.5 5.0/5 "Blown Away!"
    Ratnakar Bank debit card facility is too good. Very useful options for using debit cards at different pos and online payment system. Bank customers care facilities are also prompt in service with customer. RBL is rising bank in all villages.
    Was this review helpful? 247
    , pune
    Reviewed on Aug 21, 2017
  • Kotak
    "Kotak Mahindra Bank Fraud Services"
    KOTAK MAHINDRA BANK
    0.5 0.5/5 "Unacceptable"
    Kotak Mahindra Bank has **fraud banking services**. Rs. 800+ charge for other ATM Withdraws. 10000+ Charge for not maintaining minimum balance. 1000+ for delayed credit card payments. One Purchase = Service Tax+Conversion Charge+Interest Charge+Actual MRPâ?¦. **Close all your accounts** of Kotak Mahindra Bankâ?¦
    Was this review helpful? 252
    , bangalore
    Reviewed on Apr 06, 2017
  • Kotak
    "GOOD BANK BEST SERVICES GOOD JOB NICEBANK GOODRELATIONSHIP "
    KOTAK MAHINDRA BANK
    0.5 5.0/5 "Blown Away!"
    SUPPORTING WITH A MINIMUM WORKING TIME BANK QUICK DESISION WONDERFUL JOB GOOD PROVIDED BY OTHER BANKS LIKE ICICI, HDFC , IDBI , AXIS AND MORE NATIONALIZED BANKS FUTURE GOOD BANK MANAGMENT GOOD ALSO SUPPORT AND THANKS TO ALL THEY ARE HELPING PEOPLE THANK YOU AGAIN..
    Was this review helpful? 100
    , vadodara
    Reviewed on Mar 26, 2017
  • Kotak
    "Share a experience with Kotak Mahindra Bank on line service"
    KOTAK MAHINDRA BANK
    0.5 4.0/5 "Great!"
    I like Kotak Mahindra Bank because this bank replied fast comparing with another bank.The process was comleted process on line with in a five minute.its pleasant experience when compared with other bank services I like Kotak than another private sector banks.
    Was this review helpful? 58
    , ahmedabad
    Reviewed on Mar 25, 2017
  • Kotak
    "zero use for kotak rupay debit card"
    KOTAK MAHINDRA BANK
    0.5 0.5/5 "Unacceptable"
    i applied for a kotak mahindra rupay debit card after surrendering my existing visa debit card. firstly for some strange reason kotak doesnt allow rupay debit card as a addon card to my existing visa card. hence they automatically blocked my visa debit card on applying for rupay card. next i tried using the kotak rupay debit card on various POS terminals and online transactions. but it was declined everytime. later i got to know that they mention that it cant be used online. but there is no mention of non usage at POS too. after i tried it at around 20-30 machines i wrote them an email. to which they replied that there rupay card is not enabled for POS yet. and its not happening anytime soon. WHILE OTHER BANKS' RUPAY CARD WORKS EASILY ONLINE AS WELL AS AT POS, KOTAK CHOSES NOT TO ENABLE THESE. this card is only usefull for taking out cash from atm and that too only 10000. i was left bitterly dissapointed and have finally blocked it for reissue of visa debit card.
    Was this review helpful? 92
    , new delhi
    Reviewed on Mar 09, 2017
  • YES Bank
    "Average Experience"
    YES BANK
    0.5 4.0/5 "Great!"
    At present, I dont have an interest to take YES Bank debit card, Because I am an existing customer of HDFC and SBI bank, So I thought not to process with new bank. YES bank service was good and prompt. I hope YES Bank saving account processing fee would be Rs.15,000 to Rs.20,000.
    Was this review helpful? 39
    , warangal
    Reviewed on Dec 16, 2016
  • Kotak
    "Very Poor service - Dont go for it - i am frustrated ."
    KOTAK MAHINDRA BANK
    0.5 0.5/5 "Unacceptable"
    Deducted money, I tried to communicate with them, but I didnt get any response. having many features of KOTAK bank is not good when it comes to customer service. Do not open your account in Kotak bank they will not give you service. I am frustrated with Kotak bank. Very bad feelings.
    Was this review helpful? 90
    , pune
    Reviewed on Dec 15, 2016
  • Kotak
    "Make False Offer"
    KOTAK MAHINDRA BANK
    0.5 0.5/5 "Unacceptable"
    I'm a Kotak Platina Salary account holder which comes with a Kotak Platinum Debit Card. The Platinum Card holders has no withdrawal limit from Kotak and Non-Kotak ATM in india. Everything was going fine for last 1.5 year. I have been happily withdrawing cash around 10-15 times a month from Non-Kotak ATM. Suddenly they charged me with some CW Fee. Querying on that, I get to know that they downgraded my account upto five ATM transaction/Month. The reason of downgrading my account is many number of withdrawal of 300-400 INR. But still they are showing in the charges page the same unlimited Kotak and non-Kotak transaction. The link of the charges page is : http://www.kotak.com/service-charges.html
    Was this review helpful? 66
    , bangalore
    Reviewed on Dec 10, 2016
  • Kotak
    "Good overall"
    KOTAK MAHINDRA BANK
    0.5 5.0/5 "Blown Away!"
    I am happy with the services and response I received from Kotak Mahindra Bank for the debit card application. They contacted me and informed me all the details and the procedure as well. Since I went ahead with another bank, I cancelled my application with them. I do not wish to comment on the charges.
    Was this review helpful? 52
    , mumbai
    Reviewed on Dec 05, 2016
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