According to a report released by Germany-based consumer and market data research firm Statista, in December 2021, there were over 590 million ATM transactions and nearly 358 million point-of-sale transactions made through debit cards across India. Debit cards facilitate a simplified payment process. It eliminates the need for cheques and queuing at the bank for cash for long hours. In spite of UPI’s staggering growth in the past few years, debit cards have held their ground as a premium payment mode. Moreover, you can also perform international and domestic transactions through a debit card within a few seconds. There are different types of debit cards issued by banks and financial institutions that offer unique benefits. Read on to know about the types of debit cards available in India and their features.
Here are the most commonly available debit cards in India:
Visa debit card is a popular brand of debit card issued by Visa. Banks issue this card in association with Visa Inc. Due to the company’s wide presence, it is one of the most accepted cards for electronic payments globally. These cards work through the Visa Payment System network, which features robust security and 24×7 user assistance.
There are various types of Visa debit cards available to account holders. These include:
The Nationalised Payments Corporation of India (NPCI) rolled out RuPay as a part of India’s own debit card scheme. The primary aim behind this was to introduce India’s own multilateral and open card payment system in the country.
Before the launch of RuPay, individuals had to pay significant transaction costs, as the market of debit cards was mostly dominated by international card companies. However, RuPay helped reduce the cost of domestic transactions to a great extent.
Here are the various types of RuPay debit cards:
Powered by MasterCard, MasterCard debit cards are accepted globally. These debit cards are known for their swift service and come with a host of benefits, depending on the card variant. Some of the common benefits include – cash withdrawal, reward points (depending on the card type), uninterrupted banking service, access to your bank account from anywhere in the world, and more.
Similar to Visa and Maestro cards, you can use these cards to withdraw cash from any ATM in the world and conduct cashless transactions in any merchant outlet or an e-commerce website.
Here are the types of MasterCard debit cards issued by banks:
Maestro debit cards are powered by MasterCard and were first introduced in 1991. Maestro debit cards can be used for in-store payments and to withdraw cash from ATMs. So, how different are these from MasterCard debit cards? Well, only a few months ago there wasn’t much difference except that MaterCard debit cards could be also used as credit cards. However, as per the latest reports, MasterCard has decided to replace its Maestro cards with debit cards, effective from 1 July 2023.
Contactless debit cards feature a built-in smart microchip that can be scanned via radio waves. They work on the same principle of an employee attendance card. This allows quick and secure transactions when you wave your card over a machine. However, users need to hold this card close enough to an RFID reader at a merchant outlet.
These cards are considered a safer alternative to traditional debit cards, as you do not have to hand your card over to the cashier or enter your PIN for transactions. Some of the major Indian banks issue this debit card, and it is acceptable in some of the well-known multi-brand outlets.
Debit cards are now one of the most widely used payment methods. However, with most banks offering different types of debit cards, it is imperative to select one that offers the most benefits and privileges.
Here are some of the top banks that offer the best debit cards, that you can go for in 2022 – 2023:
SBI offers various debit card options to cater to the demands of its wide customer base. The bank also offers a 3D security service and provides secure transactions in collaboration with MasterCard and Visa.
A few popular cards issued by the State Bank of India include:
HDFC bank debit cards offer several perks and cashback offers when used for transactions. In addition, you can also utilise the EMI plans offered for making purchases with this card. HDFC bank also offers free health insurance coverage on premium cards.
The various cards that this bank issues include:
Axis bank debit cards offer rewards and points on various international and domestic transactions. You can also earn vouchers and get access to airports’ VIP lounges, depending on the type of card you have.
The various types of debits cards that Axis Bank provides are:
ICICI Bank offers numerous debit card types, which offer additional discounts on restaurants and eateries. You can also earn reward points and shopping vouchers for purchases made through your debit card.
The bank offers the following types of debit cards:
Yes Bank offers a variety of debit cards that offer complimentary gift cards on online shopping and more. The bank also offers a highly secured payment gateway to prevent cyber theft and fraud.
Here are the most well-known cards that Yes Bank issues:
With so many types of debit cards available in India, it is advisable to know the features of these cards before getting one. One should draw a comparison depending on the number of rewards, processing fee, international acceptance and other features that the cards provide.
Ans: Most of the banks in our country offer personalised debit cards. You can easily contact your bank regarding the same and choose an image of your choice as the background for your debit card. Alternatively, you can also choose an image provided by the bank.
Ans: Maestro is a debit card brand issued by Mastercard. The primary difference between these two cards is that the former is only available as a debit card, whereas the latter is issued as a credit card, debit card or prepaid card.
Ans: You can contact your bank to enquire whether they can offer an overdraft facility on your debit card. However, note that you will be able to get this privilege only if your bank account has an overdraft facility.
Ans: The full form of PIN is a personal identification number. Upon debit card issuance, your bank provides you with a PIN or requests you to create a PIN of your choice. You will have to enter this PIN every time you withdraw money from an ATM or make a transaction at a merchant outlet.
Ans: CVV stands for Card Verification Value. It is a 3-digit or 4-digit value imprinted at the bank of a debit card. You are required to enter your CVV along with your debit card number and expiry date to complete an online transaction. You should not share this number with anyone.
Before you go…
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
What is Issuer Identification Number (IIN)- Working and ImportanceWhat is an Issuer Identification Number (IIN)? Banks and financial institutions assign a distinc... Read More »
What is a Vostro Account – Meaning, Working and DifferenceWhat is a Vostro Account? A Vostro account is a bank account held by a domestic bank on behalf o... Read More »
What is a Solvency Certificate? – Format, Documents Required & How to Apply Online?What is a Solvency Certificate? A solvency certificate is a legal document furnishing the detail... Read More »
What is Merchant Banking – Services, Features, Functions and ExampleWhat is Merchant Banking? Merchant banking is a set of select banking and financial services off... Read More »
Automated Clearing House: Objectives, Types and ProcessAutomated Clearing House is an electronic fund transfer network that manages automatic and direct... Read More »
What is Electronic Clearing Service (ECS) in Banking and How does it Work?What is Electronic Clearing Service (ECS)? Electronic Clearing Service (ECS) is a method of elec... Read More »
What are Credit Card Validators and How to Use them?What is a Credit Card Validator? A credit card validator is a tool that checks the validity of a... Read More »
What are Prepaid Expenses? – Definition, Examples, and Journal EntryPrepaid expenses represent payments made in advance for products or services expected to be incurre... Read More »