{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/savings-account\/advantages-and-disadvantages-of-debit-card\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/savings-account\/advantages-and-disadvantages-of-debit-card\/","headline":"What are the Advantages & Disadvantages of a Debit Card?","name":"What are the Advantages & Disadvantages of a Debit Card?","description":"A debit card is a financial tool linked directly to your bank account that allows you to electronically spend your money at retail stores and online. Often, it\u2019s also referred to as an ATM card, since it allows you to easily withdraw cash from your account through ATMs across the country. Given their importance in...","datePublished":"2024-11-13","dateModified":"2024-11-13","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind_bank_pfx_team_indperformics-com\/#Person","name":"CONVONIX Antony","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind_bank_pfx_team_indperformics-com\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/7d15b864167d3868c12ffdda340cc1c9?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/7d15b864167d3868c12ffdda340cc1c9?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/What-are-the-advantages-Disadvantages-of-Debit-Card-min.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/What-are-the-advantages-Disadvantages-of-Debit-Card-min.jpg","height":288,"width":764},"url":"https:\/\/www.indusind.com\/iblogs\/savings-account\/advantages-and-disadvantages-of-debit-card\/","about":["Savings Account"],"wordCount":1388,"keywords":["Savings account","savings account online"],"articleBody":"A debit card is a financial tool linked directly to your bank account that allows you to electronically spend your money at retail stores and online. Often, it\u2019s also referred to as an ATM card, since it allows you to easily withdraw cash from your account through ATMs across the country.Given their importance in everyday life, it\u2019s essential to understand both the advantages and disadvantages of debit cards. Learning these aspects can help you maximise their benefits while avoiding common pitfalls. Get all the insights in detail below.Advantages of a Debit Card Easy to Obtain Debit cards are notably easy to obtain. All you need to do is open a bank account online. Once your account is opened, you can request a debit card through the bank\u2019s website or mobile banking app. The process is quick and hassle-free, with no need for complex approvals or credit checks.Direct Access to Funds When you use a debit card, the amount is instantly deducted from your account balance. You always have a clear, current view of your available balance, and there is no need to worry about delayed charges or pending bills.Premium Rewards and Cashback When you open the IndusInd Bank Indus Delite Savings Account, you not only get to enjoy the benefits of a zero-balance account but also get access to premium rewards and cashback through the Delights Debit Card.All you have to do is apply for the Delights Debit Card either while opening your account or later. You can then begin earning rewards while dining out, shopping online, or enjoying entertainment.Below is a detailed overview of all the benefits:FeatureHow it Benefits YouCashback on transactionsReceive up to 5% cashback on multiple transactions and make every purchase rewardingDiscounts on online shoppingEnjoy exclusive discounts with 20% off on Swiggy orders and 10% off on BigBasket purchasesMovie ticket benefitsAvail the \u2018Buy 1 Get 1\u2019 free offer on movie tickets purchased through BookMyShowComplimentary insurance worth \u20b91.5 lakhIncludes \u20b91,00,000 in lost card liability coverage and \u20b950,000 in purchase protectionAdditional cashback categoriesBenefit from an additional 5% cashback on expenditures related to fuel, entertainment, and OTT subscriptionsReady to enjoy these features of the debit card? Open this zero-balance account with IndusInd Bank and apply for the Delights Debit Card today!Budget Management Since spending is limited to the balance in your account, debit cards are a boon for those who prioritise budgeting and financial accuracy. With only your account balance to spend from, you naturally curb excessive spending and keep your finances within your control.Top-Notch Safety One of the crucial advantages of ATM cards is their safety. They are equipped with a magnetic stripe or a digital chip, which enhances their safety features. Each card is protected by a PIN, which must be entered during transactions for more security.Also, debit cards are linked to your bank account and registered mobile number. Whenever a transaction occurs, you either have to enter the PIN or the OTP you receive to authorise it. These multiple layers of security make debit cards a highly reliable financial tool.Convenience and Wide AcceptanceIn India and across the globe, debit cards are accepted at millions of locations, including retail stores, restaurants, online platforms, and ATMs. This network makes them a versatile and secure payment method, whether you are shopping locally or travelling internationally. They eliminate the need to carry large amounts of cash and can be a safer alternative during travel.Also Read: What are Nominal and Effective Interest Rates in Savings AccountsDisadvantages of a Debit Card No doubt that debit cards are incredibly convenient, but it is essential to be aware of their limitations to use them effectively.Limited Fraud Protection If an unauthorised transaction occurs, the money is immediately deducted from your account. Although banks may refund the amount after an investigation, this process can be time-consuming and leave you without access to your funds during that time.Lack of Credit Building Unlike credit cards, debit cards don\u2019t contribute to building your credit score. Since they are linked directly to your bank account and do not involve borrowing, you are unable to create a credit history.Spending Limitations Debit cards come with predetermined spending limits set by banks. These limits can vary but typically restrict the maximum amount you can withdraw from an ATM or spend on purchases within a 24-hour period. While these limits are designed to protect your account from fraud, they may sometimes be restrictive for large purchases or emergencies.Debit Cards | Convenient and Secure but Not Without Limits Debit cards offer countless benefits. These include direct access to funds, top-notch security, global acceptance, elimination of interest charges, ease of tracking spending, and reduced risk of carrying cash. However, they also come with certain drawbacks, such as limited fraud protection, spending limitations, and the absence of credit-building opportunities.To enjoy more rewards, discounts, and cashback, make sure to open an IndusInd Bank Indus Delite Savings Account and apply for the Delights Debit Card. Enhance your banking experience with exclusive benefits and offers tailored just for you. Apply now!Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.Share This:"}