Do you have confusion about what is Debit Card and Credit Card? So today I am going to remove that confusion. Since the note closure in November, everyone has seen the problem of not having cash. Necessary goods had to be taken, but there was no cash in hand to buy them.
In order to avoid the cash problem, the government encouraged digital payment loudly and people also started adopting this new idea and cashless payment started increasing everywhere. Many people got used to this because now the problem of taking cash in the pocket has gone away and we can easily shop anywhere anytime through digital payment.
The most important thing to make digital payment is to have your account in the bank. If a person does not have an account in the bank, then he cannot make digital payment because the money in this payment comes from the account created in the bank. When we open our account in the bank, the bank gives us a plastic card which we can use in any ATM machine. This ATM Card is also known as Debit Card.
Through debit cards, we are able to do online transactions. Apart from this card, there is another card which we can also use to make online payment just like a debit card, we call it a credit card.
We use these two cards to do the same thing – digital payment, but here the question arises that what is the difference between these two cards? If both of them are used for the same work, then why do we use both, why not any one?
You will know all about Debit Card and Credit Card and you must be using it as well. Do you all know about the difference between Debit and Credit Card? If you know then this is a very good thing and if you do not know then in this article of today we will know about what is Debit and Credit Card, what is the difference between these two.
What is Debit Card
A debit card is a payment card that is used by a user to buy something, then the money is deducted or deducted directly from the account associated with that card.
A debit card is basically a card that is used for fund transactions. It has many names such as plastic cash, bank card and ATM card, with the help of this you can easily access your savings account electronically via ATMs.
At the same time, you can deposit and withdraw money at your convenience, where you do not need to stand in long lines. At the same time, you can also use it in mobile banking and internet banking.
When we open our account in a bank, we get a debit card from the bank which remains connected to our account. With the help of this card we can withdraw money from ATM machine. Along with this, you can do online transactions and shopping, transfer money to your friends and relatives.
Apart from this, when you go out shopping in a mall or shops, you can still use your Debit Card to fill the payment there. For this, you have to provide the PIN number of your card there, only then your transaction will be completed.
Whenever we use our Debit Card to buy something or do bank transactions, then the money is deducted from our account and at the same time a SMS comes from the bank on your given number, how many in your account now. Money left We can use Debit Card anywhere and anytime easily.
What is the type of Debit Card?
The bank joins Debit Card service provider companies to provide Debit Card to its customers, which provide Debit Card to the bank.
Talking about the type of Debit Cards, then many different types of Debit cards are found. At the same time they are majorly classified in terms of technology, on the basis of payment platform, and on the basis of usage.
I. Based on Technology
1. Contactless Debit Card – The technology used in these debit cards is called radio frequency identification (RFID) or near field communication (NFC). It is used for secure transactions. Transactions are done by cards in just one tap.
2. Magnetic Stripe Debit card – This technology uses tiny iron based particles in a magnetic band. It is also called swipe card. At the same time it is easily swiped through a magnetic reading head for a transaction.
3. Chip and Pin Debit card – In this debit card technology of more developed version is used. There is a chip in which data does store and transact in an encrypted format. At the same time, a PIN (Personal Identification Number) is required to complete each transaction.
II. Based on usage
1. Prepaid Debit Card – This card does not link to any account unlike other debit cards. To use this card, you have to load money in advance.
Then you can use that money whenever you want. The most common form of prepaid debit card is Forex (Foreign Exchange) Card, which is a very convenient way to spend money abroad.
2. International Debit Card – A debit card that you use to do transactions abroad and also to withdraw money, also international bank ATMs, such a Debit Card is called International Prepaid Debit Card.
An extra charge, also called the Foreign Exchange Markup, is added to the total transaction value. This markup can be up to 3.5% of the transaction amount. Additional charges have to be paid while you are withdrawing foreign currency using your debit card.
3. Virtual Debit Card – These are not typical physical debit cards but can be easily accessed via phone and internet to fill online payments, but that too only once.
4. Business Debit Card – These are the cards that are only issued to corporate people, that too only for business works.
III. Based on payment platform
1. Visa Debit Card- This is a debit card that has been issue by Visa. Visa is a payment platform based on North America. These cards offer a verified by Visa (VbV) platform for all online transactions.
2. Visa Electron Debit Card – This is also called Behan of Visa debit card. Its slightly different feature is that it should have funds available in your account when you use this card to give payment, as there is no overdraft limit.
3. Maestro Debit Card – It is known all over the world for the trademark of master card, in which debit card PIN is required by using it to carry out any transaction.
4. Master Debit Card – This is a type of card that provides secure and convenient access to your funds.
These are of two types – Cirrus Debit card and Maestro Debit card.
5. RuPay Debit Card – A debit card that was launched under the domestic card scheme of National Payments Corporation of India (NPCI). It supports online transactions and payments over the discover network.
Apart from this, debit cards are also allot under the name of metal. For example, Gold debit cards, Titanium debit cards or Platinum Debit cards.
By the way, these cards do not have any relation with those metals, rather they are named according to their benefits. By the way, their benefits are different for all banks.
How does Debit Card work?
Debits cards are often linked to a particular bank account of the customer. Banks provide debit cards to customers, whenever they open any new savings, current or overseas accounts.
With the help of a debit card, any user can buy things very easily from merchant outlets and online stores. This type of transactions is called cashless transactions because cash is not used at all during the entire transaction.
When a debit card is swipe, then the money is directly transferred directly from the customer’s bank account to the merchant’s account. You can say that instant payments are also instantly available with cash.
The credit cards are just the opposite, you do not have to pay bill payments in later, but you stayed up Settles same money at the same time. At the same time, Debit card users receive a monthly statement that is written about all the transactions done by them to make it easier for them to track their transactions.
How to apply Debit Card?
This question of how to apply Debit Card is often asked by many people. This is because many people do not have any knowledge about this subject. So, let’s know about this topic in some detail today.
By the way, when you create a new account in a bank, whether you are a Saving Account, Current Account or anyone else. Only then you are provided with a passbook, check book as well as a debit card, which you can also call ATM card.
At the same time, if the bankers have not provided this debit card then there is nothing to worry because you can get it easily. Let’s know how.
There are two main ways to apply Debit Card.
1 ) Online Debit Card Apply
2 ) Offline Debit Card Apply
Now let us know about both these methods.
How to apply Online Debit Card
To apply for Online Debit Card, you will have to visit the official website of the bank whose debit card is with you. For example, let’s know about how to apply SBI Debit Card Online.
How to apply new SBI Debit Card Online?
Step 1 – To apply SBI Debit Card through Internet Banking, you have to first login to the Internet Banking Portal of SBI. If you wish, you can directly access the login portal of SBI by clicking here.
Step 2 – After logging into SBI Internet Banking, you will see a Dashboard which will have an e-Services button on the top. At the same time, you have to click on this button to apply for SBI Debit Card.
Step 3 – After clicking on the button of e-Services, the dashboard which will be open in front of you will have a lot of options. At the same time, you have to select the option of ATM Card Services.
Step 4 – After clicking on ATM Card Services, you will get 5 options in which you will have to click on the Request ATM / Debit Card option to apply a new debit card.
Step 5 – After clicking on Request ATM / Debit Card, a dashboard will open in front of you. Here, you have to select your name and what kind of debit card you want to apply.
Here you will get the option to select several types of debit cards, but you should select the debit card according to your needs. If you want to use your debit card online or offline in India only, then you should select Rupay Debit Card.
And if you want to apply for online transaction or use your debit card abroad, then you should apply Global International Visa or Master Card.
After selecting the type of SBI Debit Card, you have to click on the submit button by clicking on I Accept Terms & Conditions.
Step 6 – Now your address will open in front of you, this address is the address on which your SBI Debit Card will be delivered.
Step 7 – Now you have to do your Verification, for this you have two options. The first OTP of which help your registered mobile number (Registered Mobile Number will be sent). Second your profile password. You can select any of the two options according to you.
After doing all these procedures correctly, your debit card will be applied and your Debit Card will be delivered to your registered address in the next 10 to 15 days .
Talking about Charges, then SBI charges you Rs.350 / – for applying new Debit Card, which are automatically deducted from your account.
Documents that you may require while applying?
|Proof of Identity||Proof of Address|
|PAN Card||Electricity Bill|
|Ration Card||Aadhaar Card|
|Aadhaar Card||Ration Card|
|Voter’s ID Card||Rental Agreement|
How to apply Offline Debit Card
If you have to apply Offline Debit Card, then for this you will have to go directly to the bank where your account is.
There you will have to go directly to the Debit Card Counter and ask them to apply the Debit Card.
As soon as you get the form, you will have to fill all the necessary details that are required in that form.
After filling the form, you have to submit it. Once the form is submitted, then you have to wait for 15 to 20 days. The Debit Card will be delivered to the address given by you.
In many places, you are provided a Debit Card immediately. At the same time, after getting the Debit Card, you have to activate it with the help of the Pin Code inside it. All its steps are well directed there.
One thing you have to keep your Registered Mobile Number with you because OTP can come on your mobile during Activation.
What are the benefits of taking a Debit Card?
Now let us know about the fate of taking Debit Card.
Debit cards are a very convenient alternative to cash. They can be easily caught and can be easily handled as well . Since we do not always need to take cash or check book with us if we have a debit card, while traveling, it is an unprecedented safe option.
Debit cards are used to withdraw money from ATMs and also for merchant transactions in Point of Sale (PoS) terminals. A debit card ensures instant transfer of funds and receipts of services.
Where banks offer exciting features like bonus points, cash back offers, free insurance coverage and a lot of redeeming options for all accumulated points, debit cards also make your entire purchase experience quite rewarding.
Whereas Debit cards also improve our spending habit because there are account limits for spending money in it. Which helps us in better budgeting and money management as all transactions are recorded in it.
Debit card provides more security and hence it greatly reduces the chances of fraud, theft and any misuse.
In this, you can easily track your expenses and can also know all transactions through SMS alerts.
What is Credit Card?
People often do not know what is a credit card. A credit card is a card through which the holder can buy goods and services with the promise that later he will pay for these goods and services.
In simple language, then like a Debit Card, the Credit Card is not linked to any bank account. You get this card from a financial institution or bank that provides loan to people. That is, they lend money and in return, they also take some percentage interest rate at the time of payment from them. There are also benefits of taking a credit card.
We can do online payment, shopping and fund transfer as we use Debit Card but we cannot use Credit Card to withdraw money from ATM machine.
The reason for this is that without a bank account we have a credit card through which we spend money and that money provides us money in the form of a bank or a financial institution loan.
There is a limit to use money from a credit card, ie the bank that offers you a credit card has already set the limit of money as if there can be a limit of 100000 rupees for 1 month.
Some credit cards also have less money limit like 15000, 20000 etc. Bank determines this limit by looking at your business and income in the same way that you have the ability to repay their loan.
You can spend money from credit card within this limit. At the end of the month or when the bank gives you a date that on this date of every month, you have to pay all the money that you have spent using credit card.
If you do not pay your money on time, then you can get paid for the amount spent along with the fine.
What is the type of credit card?
Not all people need the same credit card. People should take credit card according to their needs. While some like to shop, traveling to some.
That is why in today’s customer-centric market , banks and financial institution have therefore found a great solution – a credit card that is able to fulfill all your needs.
Types of credit cards
While the partnership is between the two card issuers and retailers, their categorization has been made even easier. Let us now know about the type of credit cards.
Lifestyle Credit Cards
You can also call a lifestyle credit card “All-in-one” credit card, which provides many privileges in all categories. Then whether it is shopping or traveling, cash back from rewards, entertainment from dining, you can enjoy special offers and discounts in all credit cards.
Although the annual fee and joining fee of Lifestyle Credit Cards are high, but it is nothing in front of the privileges it offers.
Shopping Credit Cards
As the name itself suggests – Shopping Credit Cards have been designed only for shopaholics people or for those shopping more.
While some cards offer you great deals and discounts for online shopping, others are designed to do in-store shopping.
Travel Credit Cards
These credit cards mostly provide air travel benefits, hence Airline Credit Cards are most suitable for frequent travelers.
These features and benefits offered on the cards revolve around the air travel. With Reward points you can do air mile conversion, free flight tickets, complimentary airport lounge access, and also get accelerated rewards in air ticket booking.
Reward Credit Cards
You are given rewards on Rewards Credit Cards when you use a Credit Card in a transaction. In this, credit card issuers provide you with many redemption options of such a variety that you can easily take advantage of it. Gifts to air miles to cashback are the main among these options.
In Reward Credit Card you are provided welcome rewards, bonus rewards, milestone rewards etc. according to the reward points. In most cards, there is unlimited validity of these reward points.
Cashback Credit Cards
Cashback credit cards provide you with cash back when you use these Cashback Credit Cards. This is a very good money-saving benefit.
While some cards offer you cashback points in the form of cash, some cashbacks are directly credited to your account.
Fuel Credit Cards
There are many credit card agencies that have tie-ups with major fuel companies such as Hindustan Petroleum (HP), Bharat Petroleum (BPCL), Indian Oil, etc., and these credit card issuers offer you fuel credit cards. In which there are some partner-specific benefits.
By using Fuel credit cards, you get reward points when you use these credit cards. At the same time, you get fuel surcharge waiver facility, reward points redemption against fuel purchases, and other value back benefits as well, this saves a lot in your fuel.
How to apply credit card?
Now that you have understood what credit cards are, now let’s know how to apply credit cards.
As the demand for credit card is increasing gradually in the market. In such a situation, banks and financial institutions have made the credit card application quite easy for all customers. By the way, if you want, you can apply credit card, mainly in two ways online and offline.
How to apply Credit Card Online?
In today’s time, you can easily get a credit card if you are eligible for all the criteria. You do not have to go to any bank branch because you can apply credit card application online only.
All you have to do is go to the bank’s web portal on the internet and then apply for a credit card in which you have to fill some basic details like name, email ID, contact number, income, address, etc.
Now you will get a call from the credit card representative of the bank, which is going to guide you in the future process. At the same time, he can also come to your house to collect representative documents if you want.
How to apply Credit Card Offline?
If you are not so much familiar with Apply Online then you can also go directly to the bank and apply Credit Card Offline for yourself there.
Here, you have to go to the bank and talk to the Credit Card Representative. At the same time, that representative will tell you about all the credit cards that you need.
Then you have to fill the credit card application form and also provide some KYC documents such as identity proof, address proof, etc. At the same time, you can also be asked for proof of income and along with two passport sized photographs.
What documents are required to make a credit card?
To make a credit card you need some documents. So, you know which documents are necessary to make a credit card.
- Pan Card
- Identity Proof (Aadhar Card, Voter Id)
- Income Tax Return Receipt Or Fix Deposit In Your Account
- Address Proof (Telephone Or Electricity Bill)
- Age Certificate (Birth Certificate Or Voter Id Card)
Applicants can submit any one ID proof, address proof and income proof if they wish. Here below, I have prepared a list of all documents.
|Proof of Identity||Proof of Address||Proof of Income (For Self-Employed)||Proof of Income (For Salaried)|
|Passport||Telephone Bill||Certified Financials||Salary Certificate|
|PAN Card||Electricity Bill||Recent ITR Statement||Recent Salary slip/s|
|Ration Card||Aadhaar Card||Passport||Employment Letter|
|Aadhaar Card||Ration Card||Proof of business continuity|
|Voter’s ID Card||Rental Agreement|
Why is a Credit Card so important?
Now let us know why the Credit Card is really so important.
1. To manage your short-term financial needs – because your salary is not as much sufficient in a long time.
2. To enjoy interest-free credit – You only pay interest in a credit card when you do not repay the due amount in due time.
3. Ease of use – In this you get ready cash to make sudden expenses.
4. You also get other perks in it – like Reward points, discounts, cash-backs, some air miles are also offered and much more.
What are the features of Credit Card?
Banks provide very good features in their credit cards. These features vary as to what kind of card the card holder has and from whom he has taken that card. While there, let us know about the credit card features.
Having a Reward Points Program: In
most credit cards you can see reward points program, so that cardholders can easily earn reward points in each of their transactions which they have done with credit cards.
You can redeem these accumulated reward points in many places. The bank determines the discounts and rewards you receive. Card members have to earn some minimum reward points before redemption.
Airport Lounge Access
In most credit cards, you can get membership of Complimentary airport lounge access and Priority Pass Program.
Even though these features give you a basic credit card, but above the basic credit card, you can get these offers in all the cards. But there is a time limit of this offer, within which you have to redeem them.
With such a feature, members can easily enjoy free lounge visits in both domestic and international airports.
Can get Fuel Surcharge Waiver
In most credit cards, you get the facility of fuel surcharge waiver. With this, it gives you a discount of about 1% surcharge, which you have to pay in all card transactions, especially in petrol stations.
Get Insurance Coverage
In some premier cards you are provided comprehensive insurance policy such as air accident, life, lost baggage, lost card. On the other hand, this insurance cover is quite limited only for some aspects.
In today’s time, most of the credit cards that are issue in India are all international cards and are accepted by almost all merchants around the world.
Can transfer balance
Credit cardholders can transfer their outstanding balance to another bank’s credit card. With this you can easily save money, that too at a very low rate of interest. Banks provide many balance transfer options to their cardholders so that they can repay the amount on a monthly basis.
This feature allows credit card members to do their credit card transaction in easy monthly instalments (EMIs). Which makes them very easy to pay money.
In most of the time these plans are very attractive interest rates and with different repayment tenures. At the same time, there is no need to do any other documentation to do these EMI conversions and they are very instant.
Can get Lifestyle Benefits
Since they are associated with many different merchants, credit card issuers offer attractive discounts to their customers and offer them many lifestyle categories including dining, shopping, travel, wellness, entertainment, etc.
Travel credit cards are very beneficial for people who like to travel because it gives them travel related benefits.
Some of the same benefits that these travel credit cards offer are air miles accrual and redemption. They offer air tickets, free travel insurance, discount offers in domestic and international flights, complimentary lounge you can visit. The hotel also offers discounts in booking.
What are the benefits of Credit Card?
Now let’s get more information about the benefits of Credit Card.
Having a Welcome Gift
Most banks provide you with a welcome gift with a new credit card that you receive with that card. This gift can be in any way like as per bonus points, gift vouchers, discounts, etc. The welcome gift also varies according to the card and bank.
All credit cards generally have a reward program, which allows them to earn reward points from their cards during each transaction.
At the same time, the points you receive in each transaction are fixed and differ from one card to another. You can redeem these points on the basis of gifts which are written in the rewards catalog. These gifts can be anything like discounts, products, services, cashback offers, etc.
Fuel Surcharge Waiver
Many banks also provide you fuel surcharge waiver if you are using credit cards. These offers are available to you when you do fuel transactions.
There are some credit cards that offer you cashback benefits. How much cashback is provided to you depends on how much your provider provides you.
Cardholders can easily enjoy many lifestyle benefits on their credit cards. Lifestyle benefits come in the amenities of dining, shopping, golf, wellness, entertainment, etc.
This is a very big reason that credit cards are so popular among people. Some credit cards offer excellent travel benefits to their customers. Travel benefits include air miles, airport lounge access, travel insurance, airline offers, hotel offers, etc.
Airport Lounge Access
Some credit cards offer complimentary airport lounge access to their cardholders. This offer varies from one bank to another.
Some banks allow their credit cardholders to apply add-on cards to their immediate family members. Although most card issuers offer add-on cards for free, but some limit on the amount of these add-on cards.
Cardholders can easily avail all the privileges in those add-on cards that you get in your primary cards.
What is the difference between a debit card and a credit card?
Now you must have understood what is Debit Card and Credit Card and you must have come to know a little about what is the difference between these two. If it is not found, then I do not tell you what is the difference between them.
1The first difference is that the Debit Card is connected to your bank’s checking or savings account and the Credit Card is not connected to any account.
2With Debit Card you can spend as much money as you want until your bank balance becomes zero and with Credit Card you can spend just as much money as you are given cash limit by the bank.
3You must have marked one thing that Debit Card is present with everyone, but not everyone has a Credit Card. This is because the Debit Card gets everyone by opening the account in the bank, but for the Credit Card, one has to apply to the bank separately. The bank approves your monthly salary or business, and only after checking all the other details to give a credit card.
4With the help of Debit Card we can withdraw money from the ATM machine whenever you want, but we cannot use the Credit Card to withdraw money because this card is used only for making cashless payment.
5After payment of credit card, after one month you get monthly bills every month to fill that money, in which the details of all the transactions done by you are present and how much money you have to pay to the bank will also be written. But nothing like this happens in Debit Card.
Whenever you are paying through Debit Card, the money is deducted from your account only.
What to do if you have not received the credit card even after applying?
If you have not received a new credit card within 7 to 15 days of applying your credit card, then you should contact your bank.
At the same time, if you have received a notification that your credit card has been approved, even then you have not received the credit card, you must still contact your bank once.
How to check Credit Card Application Status?
Different banks have different methods of credit card application, but most of them have online facility, so that you can also apply online credit card if you want.
In this process you have to provide all required documents and information to the bank. At the same time, once the application process is complete, then you can also track your application status to check how far it has been processed by the bank, so that you can follow it accordingly.
By the way, within three weeks credit card is received from almost all banks. At the same time, if it takes longer than that, then you must check the status of your credit card.
By the way, some information has been given below, by using it you can check online credit card status on the bank’s official site:
- Application Number
- PAN Card number
- Form number
- Date of birth
How to check status of online credit card application?
Let’s know how to check Online Credit Card Application Status.
- First visit the official website of the bank.
- There you will see a tab on which will be written ‘Track application’ or something like that.
- After clicking on that application status, you will have a window display in front of you, in which you will be asked to fill some details such as application form, PAN number etc.
- Once you have filled all the details, then you have to click on the status or enter tab.
- Now the website will display the status of your credit card.
- Whereas if you want, you can also call your bank branch or you can also go to the bank branch yourself to check the status of your credit card application form.
By the way, before calling customer care or before going to the bank, gather some things beforehand, this can be very useful for you:
- Your application number or reference number that was provided to you while filling the application.
- Your mobile number that you mentioned in the application.
- PAN card details.
- Date of birth.
How to keep Debit Card and Credit Card safe?
If you also want to keep your Debit Card and Credit Card safe from online scammers like others, then you have to follow some rules that will protect you from these scammers.
Check your Bank Statements periodically
This is because many times it has been seen that transaction messages do not come on registered mobile very often due to some technical issues.
Therefore it is better to review your bank account once a week. If possible, make it a habit.
Protect your PIN number
Do not put your PIN number anywhere. Or do not give it to anyone on demand. This may cause misuse of cards.
Use the same cards in those places where no one is looking at the PIN you have entered.
Make transactions only on the right and popular online sites
There are many such sites on the internet which are frauds and they look exactly like original sites. Therefore, do the transaction through your card on the right and popular websites as much as possible.
See in websites, which must. Do not conduct transactions where ” s ” is not there. Because having S provides a higher level of security.
Use your ATMs near the Bank
Nowadays ATMs are found everywhere. Be it subway stations, airports etc. There are many more people in these places who have such devices that can easily store the details of your cards intercept.
At the same time, surveillance cameras are also less often in such places. That’s why there are more thieves here. Therefore, use your cards in the right place.
Do not use Public Wireless Access for Financial Transactions
For any financial related work, you should always use password protected wireless signal only. Because cases of data theft have been reported frequently in public wi-fi .
Here you will also find many hackers who are just looking for new victims.
Report immediately if cards are stolen
If you come to know that your wallet has been stolen in which all your cards were mehjud. Then immediately cancel all your cards.
Report any unauthorized transactions immediately.
In such a situation, you can save your money from being stolen. If possible, make a police complaint as well, keep that receipt with you.
Create your own Security Profile
When you are deciding your security questions, then keep them a little uncommon because anyone can guess common questions. Use special characters and numbers in passwords as well.
Credit and debit cards give us many advantages, there is a risk of using them. If they are not used properly, then our money can also be damaged.
These were the things related to debit card and credit card, I hope you have understood what is Debit and Credit Card and what are the differences between them. Also got to know what are the benefits of Credit Card.
In today’s time, it is very important for all of us to have a debit or credit card, so that we can make digital payments easily when we do not have cash. If you have understood what the Debit Card is, then share it to your friends.
I hope you will like this article Debit Card, if you ask any question related to this article then you can ask it by commenting below.