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What Is a Debit Card?

Debit Card

Debit Card

A debit Card is an expedient way of spending your funds, without actually carrying cash. In the most simple sense, using a Debit Card means putting your money in your bank account and swiping your card when you make a purchase. When you swipe your Debit Card, the money is immediately deducted from your account and paid to the seller, unlike a Credit Card where you have a grace period to pay back the amount.

When you use a Debit Card, you can not spend more than what you have in your account. Hence, this is a good way of monitoring your expenses but also buying things without worrying about going into a debt. You can use your Debit Card in stores, online and even to withdraw cash from ATMs. It is the best way of making payment for things you purchase online. A number of online stores provide great offers, such as cash back and additional discounts, if you use your Debit Card to make payment.

Merits and Demerits of using a Debit Card


  • It is more convenient to carry a Debit Card than carrying cash all the time.
  • Unlike Credit Cards, you can not get into debts by using a Debit Card.
  • Debit Cards allow you to make basic financial transactions such as cash withdrawal, cash deposit, bill payment and so on, easily.
  • Debit Cards are way safer than cash.


  • Debit Cards do not build your credit score hence, it becomes difficult to get a nice loan rate if you only have a Debit card and no Credit card.
  • If you opt the overdraft facility, you have to incur certain amount of fees.
  • Anybody who has your debit card and ATM PIN can easily withdraw money from your account.

In case you lose your Debit Card

In case you lose your Debit card, you should immediately inform the respective bank and tell them to block your card, so that there is no unauthorized use of your card. Do not wait for more than a day to report a missing or stolen card. Your Debit Card is your responsibility and the bank won’t reimburse the amount of unauthorized payments, in case you are late to inform about the loss. The bank charges a minor fee for replacing the card.

Some Tips and Tricks

Debit Card is an amazing invention in the world of banking and it serves various purposes. These are extremely convenient and safe, if used and kept in a proper way. These are a great way to monitor and control your expenses. It is always advisable to get a Debit Card as early as possible so as to develop good financial habits. But before you get yourself a Debit Card, be sure to research well and go through all the terms and conditions properly. This plastic card can be used in the best possible way if you are aware of all the pros and cons.

Happy Banking!

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  1. It is happy to understand the real advantages & Disadvantages of debit cards.So many people are still on dilemma whether to use the card or not. This blog really helped to understand what the debit card is meant for.The tricks quoted above are so useful and I am expecting more tricks and techniques from the author!Nice read, simple but useful.

  2. Debit card is a good way of monitoring one’s expenses. Unlike credit card one cannot get in debt with a debit card. But what happens if one exceeds the set limit? Does one has to pay extra or the transction is not completed? But does one earns any extra interest if the money in the debit card is not used? Credit card has the advantage of earning the CIBIL ratings needed for loans. But there is no such thing for debit card.


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