Debit Card

What is a Debit Card?

A debit card is a banking product. It is a thin plastic card with an embedded chip. It refers to a card used for making payments, withdrawing or transferring from the customer’s bank account.

Alternatively, they are called bank cards. In general, customers use this card when they buy goods or services electronically or physically. Also, it can be used for getting cash from the ATM. We can also call it plastic money. It consists of the following:

  • Bank Name
  • Cardholder’s name
  • Expiration Date
  • Card Number
  • CVV

The transactions that you make using a debit card are reflected in your bank statement. This will ensure that you have a record of all the expenses.debit card

By carrying debit cards, customers need not carry cash with them, because they can make payments with the card.

The customer needs to enter a four-digit pin (personal identification number) during the transaction.

One must note that bank usually charges a specified fee for providing a debit card.

Table of Contents

  1. Features
  2. Points to Note
  3. Eligibility
  4. How does it work?
  5. How to report Debit Card fraud?
  6. Wrap Up

Features of Debit Card

  1. Card Design: Debit cards issued by the bank must have a standard size. It should bear the logo of the bank and card network, and unique card number. Banks issue these debit cards in collaboration with companies such as Visa, Mastercard, Maestro, American Express and RuPay. These are all card networks.
  2. Card Number: It bears a 16-digit number, often called a Debit Card Number. This number has two parts, wherein the first part (0-6) represents the company that issues the card and the second part (7-16) represents the bank issuing that card.
  3. Card Validity: Cards come with a validity period in Month/Year. It is printed on the face of the card. Meaning the card is valid until that date. Generally, the bank sends a new card to the address of the customer, a few days before its expiry. To start using the new card set the pin, using a stipulated method.
  4. CVV Number: Every card has a system-generated CVV or CVN, i.e. Card Verification Value or Card Verification Network respectively. It is a three-digit number printed on the back of the card. It is used for e-commerce transactions. The CVV number is necessary for validating the transaction on Card Not Present Transaction, compulsorily so as to authenticate the transaction.
  5. EMV Card: EMV stands for Euro pay, MasterCard and Visa. It is a global standard for payments, be it debit or credit, which relies on chip card technology. Such cards generally provide protection against card fraud.
  6. PIN: Personal Identification Number or PIN is a four-digit secret code, often set by the customer using various methods. This is used for withdrawing cash at ATM and also for making payment of merchandise at the Point of Sale.
  7. Signature: At the back of the card, there is a white strip that the card owner needs to sign. This is for a counter check with a signature on the customer copy when the customer makes purchases at the Point of sale.

Points to Note


  • Debit Cards are a wiser alternative to cash because one can carry them easily. Also, one can block it, if it gets stolen, which is not possible with cash.
  • It is issued to those customers who have a savings bank account or current account.
  • The customer can withdraw money using a Debit card through an ATM.
  • It can be used to make payments of transactions at Point of Sale terminals.
  • One can easily and immediately transfer funds to anyone using a Debit card.
  • There are a number of services offered by banks to the holders of the debit card including free insurance coverage, cash backs and discounts.
  • It is highly secured, so the chances of fraud and misuse are quite less.
  • It is a contactless payment method, which enables the consumer to buy things by simply swiping the card at the Point of Sale.


  1. No bank can issue a debit card to the holders of cash credit or loan accounts.
  2. Individual minor savings account holders with age 10 or above can be issued a Debit card.
  3. Current accounts in the name of a person, sole proprietor and partnership firm are issued debit cards in the name of a person.
  4. No debit card is issued in the name of Institutional, Trust, Company Accounts, HUF, Club, Society and Associations
  5. CC or OD A/c approved for business purposes are not issued debit cards. However, overdraft accounts in the name of individual name,
  6. Sole Proprietor and Joint names are issued debit cards.

How does it work?

A debit card is a payment card which is linked to the bank account of the customer. The available balance in your bank account determines the amount the customers can spend.

How to report Debit Card fraud?

If you encounter a fraudulent online transaction in your account via debit card use and the card is in your possession? Then this might be the case of email spoofing, phishing or cloning your card.

Step 1: As and when you come to know that a suspicious transaction occurred via your debit card (text message of debit) just dial the card issuer, i.e. customer care of the bank and request for blocking the card immediately.

Step 2: Write down a complaint to the bank along with certain documents:

Bank Statement, Copy of text message received of the concerned debit transaction

Copy of your Aadhar & PAN and address proof, which you submitted to the bank when opening the account.

Copy of FIR (narrating the event of the cyber fraud), which the holder of the card has filed with the police station of the jurisdiction.

Wrap Up

Above all, the best thing about debit cards is that it gives you the flexibility. It makes your payment safe and convenient, using an electronic payment facility. It is issued for transactions where immediate debit from the customer’s account and direct processing is involved.

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