Why are debit cards used?

Similar to credit cards, debit cards are also issued by banks to their customers to help them purchase goods and services. But in their functions, these two cards are quite different.

While using a debit card, money gets deducted from the user’s bank account itself. One can use it for shopping and bill payment, in the same way that a credit card is used. But the moment a transaction is completed, money gets debited from his or her account. This also means that there is no need for repayment.

In most cases it is the same debit card that we use at ATMs for withdrawing money. These cards are used for online shopping too.

The card has a Personal Identification Number or PIN, which has to be used for carrying out a transaction. There are different brands of debit cards used in our country, all of them developed by private companies. Apart from these, the National Payments Corporation of India launched a new one named ‘RuPay’ in March 2012. It has been a success since its launch.