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

DEBIT CARD EMI FROM FLIPKART — A Detailed Guide

A debit card EMI is a credit facility provided to selected customers to make the payments in instalments using their debit cards when they don't have sufficient balance in their balance accounts.

Debit card EMI from Flipkart: Banks provide pre-approved credit facility to the selected customers based on the previous payment record. Presently, Flipkart has provided debit card EMI facility in partnership with four banks, which are Axis bank, State bank of India, HDFC Bank and ICICI bank. Banks determine the interest rate based on the customer's credibility and payment record. It may also provide zero cost debit card EMI to its credible customers.

The customers can use this facility if they have made the minimum purchase using their debit card. The minimum limit for the card varies from bank to bank ranging from ₹5,000 (ICICI Bank) to ₹8,000 (Axis Bank and SBI) and ₹10,000 (HDFC Bank).
Availing the EMI option for making purchases:  To check the eligibility for a debit card EMI facility, you can send an SMS DCEMI to 57575. At the payment gateway, you will find the option of 'NO COST EMI' or 'Pay using debit card EMI', if you are already pre-approved for the EMI. Choose the EMI option, and the bank account for availing the EMI. In the next option, you will be asked to select the EMI amount and tenure. You can pay the EMI in 3- 12 months, depending on your repaying capability. After choosing the EMI instalment, enter your debit card CVV number and similarly complete the transaction. Read more: How does debit card works?

What are advantages of Debit card and Credit card?

Debit cards 

Debit cards are the cards which are directly linked to an individual's bank account. If there are funds in one's bank account, a debit card will help one to get the money as and when required.

Advantages of debit cards:

1. No extra cost is involved with debit cards. 2. It assists one to keep track of his spending patterns and helps to no spend beyond one's limits. 3. There is no extra cost charged on making payments.

Credit cards: Credit cards are aplastic card issued by a bank and financial institution, allowing the cardholders to purchase goods or services on credit.

Advantages of credit cards:

1. It assists an individual in building a credit card score. A credit score is a three-digit number which helps one to secure loans. 2. Credit cards also provide rewards like free or discounted price in travel, movies and shows.

Features	Credit Cards	Debit Cards
Linked with bank	The issuing Bank	The individual’s bank account.
Credit limit/ spending limit	Credit limit assigned on a monthly basis. Based on credit score	Cash withdrawal and POS limit assigned on a daily basis. Some debit cards do not have that limit.
Interest charged	Charged if in case an individual has not cleared his bill on time	No interest charged

Read more: Debit Card vs Credit Card: Features & Benefits

What is Debit Card and How to use it?

A debit card is a plastic payment card to make any transaction at the Bank ATM or to the merchant. Unlike another plastic card like a credit card any transaction done through a debit card transfers the money from the bank account of a cardholder.

A debit card offers the following benefits to card users.

1. With the debit cards, it has become possible to withdraw the cash 24*7.
2. A debit card has undoubtedly reduced the risk of money loss.
3. A debit card is easy to carry anytime and can be issued free of cost.
4. It can be used conveniently at our comfort zones for ATM withdrawals, Online shopping and making payment through Point-of-sale machines.
5. With the quick transactions and several bonuses and rewards, the debit cards have indeed become the preferred choice for making transactions.

Using and paying with debit cards:

A virtual debit card is used for online shopping, paying rents and other utility bills, ordering food etc. It can be used at the payment gateway by entering details such as Account number, Expiry date and CVV number. To use debit cards in the swipe machine, you will be asked to enter your debit card Pin after the merchant swipes the card in the swiping machine. The transaction is completed as you press enter in a few minutes. A debit card can also be used at ATMs to withdraw money from the bank account.

Read more about: What is Debit card and how to apply for debit card?