How does debit card works?

A debit card is one of the most popular electronic modes of payment in this digitalized world. It is a plastic card linked to your savings account and gives access to your account whenever you want. 

The fundamental difference between a credit card and debit card is that;

• In debit card, you spend the money you have in your savings account.
• In credit cards, you get instant credit or loan when you make the purchase, each transaction attracts interest, and it has to be repaid. Credit card bills are generated monthly.

 Although a debit card is not free of charges either. Some of the common fee in regards to a debit card are:
1. After a certain number of transactions in a month, next transactions on other bank's ATMs attract a fee.
2. In case you forget your debit card PIN, then a nominal fee is charged to regenerate it.
3. Banks also charge an annual maintenance fee for the debit card from Rs. 100 to Rs. 500 depending upon the type of card.
4. In case you want to replace the old card with a new one or get the card reissued due to the previous card being lost, then a card replacement fee is charged.

Couple of things that you must be mindful of while using a debit card are that firstly always ensure the safety of the platform before performing the online transaction through a debit card. Next, never cause any physical damage to your card, it may destroy its magnetic chip.
Read more: A Detailed about Debit Card