How to Pick the Right Credit Card

How to Pick the Right Credit Card

How to Pick the Right Credit Card

Credit cards are super useful in India, giving you an easy way to pay for things, flexibility, and some cool perks. But with so many credit cards out there, it’s hard to pick the right one for you. This guide will help you choose the best credit card in India, considering what you need and what’s smart for your wallet.

Subas Tiwari

Why Credit Cards are Big in India

In India, people love credit cards. They used to be fancy, but now they’re smart financial tools. Credit cards let you buy stuff, pay bills, and get money when you need it. Plus, they give you rewards, cashback, and discounts – what’s not to love?

Why Picking the Right Card is Key

Choosing the right credit card is a big deal because it affects your money big time. A good credit card can save you cash, protect you when things go wrong, and build your credit score. But a bad choice means you pay extra fees and get stressed out.

India’s credit card world is a big place, and there’s no one-size-fits-all answer. The best credit card for you depends on your needs, money goals, and how you spend. Let’s break it down and make the right choice.

Understand Your Money Goals and Spending Habits

First, know your financial story. What do you want from a credit card? Here are some common goals:

  • Building Credit: If you’re new to credit or need a better credit score, go for a card that helps with that.
  • Earning Rewards: If you want freebies like cashback, rewards points, or air miles, go for a card with a sweet rewards program.
  • Managing Expenses: If you’re using a credit card for everyday stuff, get one with low interest or a grace period.
  • Travel and Lifestyle: If you’re a globetrotter or want cool stuff like airport lounge access, look into travel or lifestyle credit cards.
  • Building or Fixing Credit: If your credit history isn’t great, try secured or credit-builder cards. They’re designed for folks like you.

Think about your spending habits, too

  • Categories: What do you spend most on? Groceries, eating out, travel, shopping, fuel, or fun stuff?
  • How much and how often: Do you use your credit card a lot or just now and then? Do you pay the full bill every month?
  • Your budget: What’s your monthly budget, and can you stick to it with a credit card?

Know Your Card Needs

Now that you’re clear on your goals and spending style, it’s time to nail down your credit card needs. Here are some scenarios:

Rewards Lover: If you want rewards, go for cards that give the most in the categories you spend most on. For instance, if you love eating out, find a card with dining rewards.

Interest Saver: If you want to avoid high interest, find cards with low Annual Percentage Rates (APR) and easy interest rules.

Frequent Flyer: If you travel a lot or like VIP stuff, prioritize travel cards that offer air miles, hotel deals, and travel insurance. They often come with neat perks like airport lounge access.

Credit Builder: If you’re building or fixing your credit, look into secured or credit-builder cards. They’re perfect for people with a slim or damaged credit history.

Knowing your goals and spending habits is the first step in finding the right credit card. Armed with this info, you can compare your options and pick smartly.

Get the Lowdown on Your Credit Score

Your credit score is like your financial report card. It shows lenders how responsible you are with money. In India, credit scores come from folks like CIBIL, Experian, Equifax, and CRIF High Mark. These scores depend on your credit history, like your accounts, how you repay debts, and what you owe.

Before you apply for a credit card, you got to know your credit score. Here’s how:

  • Online Credit Bureaus: Check out websites like CIBIL, Experian, Equifax, or CRIF High Mark. They let you request your score by filling out some personal info.
  • Credit Monitoring Services: Some banks and credit card companies offer credit monitoring services. These give you easy access to your score.
  • Credit Score Apps: Loads of apps let you check your score. They even toss in regular updates and credit monitoring.

Why Your Credit Score Matters

A good credit score is key for a bunch of money stuff. Here’s why:

  • Credit Approval: Lenders and credit card companies peek at your credit score to see if you’re good with money. Higher scores mean a better chance of getting credit cards and loans.
  • Lower Interest Rates: A top-notch score lands you credit cards and loans with low interest. This saves you lots of money in interest over time.
  • Higher Credit Limits: A sweet score can get you higher credit limits on your cards, giving you more financial elbow room.
  • Haggling Power: A solid credit score lets you bargain with lenders. You can ask for better rates and terms based on your financial track record.
  • Renting Homes: Landlords check your credit score to decide if they should rent you a place. A good score makes this easier.

Before you dive into the world of credit cards, take a sec to check your credit score. Knowing where you stand helps you figure out what cards you’ll qualify for and what terms to expect.

Compare Types of Credit Cards

Credit cards in India come in all shapes and sizes, each designed for specific needs and lifestyles. Understanding the types helps you narrow down your choices. Here’s a quick look at the common types:

  • Travel Credit Cards: These are for jet-setters. They give you air miles, hotel discounts, airport lounge access, and travel insurance. Perfect if you want to max out your rewards on trips.
  • Rewards Credit Cards: These cards hand out rewards like points, cashback, or discounts on different spending categories. You earn points for every rupee you spend. They’re great for everyday spending.
  • Lifestyle Credit Cards: If you want to spice up your life, go for these. They offer discounts and goodies for things like dining, shopping, entertainment, and fitness.
  • Fuel Credit Cards: Tailored for frequent fuel consumers, these options provide benefits such as fuel surcharge waivers or cashback on refuelling expenses—an ideal way to cut down on your fuel costs.
  • Secured Credit Cards: Geared towards individuals with limited or no credit history, these options require a deposit matching your credit limit. Using them wisely aids in establishing or rebuilding your credit score.
  • Business Credit Cards: Entrepreneurs and business owners, these are for you. They offer biz perks like expense tracking, employee cards, and business rewards. You can also get higher credit limits to meet your business needs.

Consider your lifestyle, spending habits, and personal preferences when evaluating credit card options. The ideal choice aligns with your goals and maximizes value. Certain cards even combine features from various types, offering a versatile mix of benefits to suit your needs.

Master the Art of Fees and Charges

Before you lock in your credit card choice, you got know about the different fees and charges. They can jack up the cost of using your card. Here’s what to watch out for:

  • Annual Fees: Every year, you’ll pay a fee for having and using the card. It can be zero (no annual fee) or a few grand. You might get a break in the first year, but it kicks in from year two. Think about whether the fee’s worth the card’s rewards.
  • Interest Rates: This is the cost of borrowing money with your card, and it’s called the Annual Percentage Rate (APR). It’s slapped on any balances you don’t pay off in full by the due date. Different card actions, like purchases, cash advances, or balance transfers, can have different rates.
  • Late Payment Fees: If you don’t at least pay the minimum amount by the due date, you’re in for a charge. It can be pretty hefty and mess up your credit score.
  • Cash Advance Fees: Grabbing cash from your credit card at an ATM or somewhere else means you pay a fee. It’s a chunk of the cash advance amount and comes with a higher interest rate.
  • Foreign Transaction Fees: Buying stuff in foreign currencies or outside India racks up foreign transaction fees. These can add up if you travel a lot or shop from overseas websites.

Know the details of these fees and charges when you’re thinking about your credit card. The right card for you has a fee setup that matches your spending and helps you keep costs down.

Find Extra Benefits

Beyond the basics of rewards and fees, credit cards throw in extra benefits and perks. They can make your card awesome. Depending on what you like and how you live, some extras might catch your eye more than others:

  • Travel Perks: Lots of cards, especially the travel ones, come with cool travel stuff. This could be air miles that you can turn into free flights or hotel discounts, airport lounge access for a comfy pre-flight experience, and travel insurance. Also, some cards give good exchange rates for international travel and spending.
  • Concierge Services: Fancy credit cards often offer concierge services. These pros help with things like travel plans, restaurant bookings, event tickets, and more. They save you time and up your lifestyle.
  • Purchase Protection: A few cards have your back when you’re unhappy with things you bought using the card. You can get stuff like extended warranties, price protection, and cover for damaged or stolen things.
  • EMI Conversion Options: Some cards let you turn big buys into Equated Monthly Instalments (EMIs) with lower interest rates. It’s a great way to spread out big expenses.
  • Balance Transfer Offers: If you’ve got high-interest credit card debt, some cards offer balance transfer options. This lets you move your debt to a new card with a lower interest rate for a set time.

When you’re looking at extra benefits, think about what fits with your lifestyle and spending habits. If you’re a frequent traveller, things like air miles and lounge access might be a hit. But if you make big buys, purchase protection and EMI options might be more your thing.

Check for Signup Bonuses and Introductory Offers

In India, credit cards often tempt newbies with juicy signup bonuses and introductory deals. These goodies give you a sweet reward or save you cash right off the bat. Here’s the deal:

Signup Bonuses: These are gifts for new cardholders who spend a certain amount in a set time. It can be cashback, rewards points, or vouchers for shopping or services. When you’re checking out signup bonuses:

  • Look at the requirements to score the bonus.
  • Check how much the bonus is worth and if it lines up with your spending.
  • Mind the time frame to hit the spending target.

Introductory APR Offers: Certain cards offer an attractive initial deal with low or 0% interest rates on purchases or balance transfers, typically spanning a few months to over a year. Consider how you can leverage these offers based on your financial goals. Be mindful of when the introductory period concludes and the subsequent regular APR. While signup bonuses and initial offers may be enticing, ensure the card’s long-term benefits and terms align with your needs. Opt for a card that provides ongoing value beyond the initial promotional period.

Dive into the Terms and Conditions

Before you say yes to a credit card, take a good look at the terms and conditions that come with it. This is the fine print that lays out the rules for using the card. You got know stuff like:

  • Interest Rates: Check out the interest rate terms, including the APR for different card actions. Understand how interest is calculated, and keep an eye out for variable interest rates that can change.
  • Minimum Payments: Know the rules for the minimum payment. This is the least amount you got pay each month to keep your card in good standing. But keep in mind that paying just the minimum will cost you more in interest and take longer to pay off your balance.
  • Grace Periods: Credit cards usually give you a grace period to pay your balance in full without racking up interest. Know how long the grace period is and when it starts and ends. Pay your balance in full within this period to dodge interest.
  • Rewards Redemption Rules: If you’re going for a rewards card, understand the rules for cashback or rewards points. Know how and where you can use your rewards, and check for any limits or expiration dates.
  • Restrictions and Limits: Search for any restrictions or limits imposed by the card issuer, such as blocking balance transfers, restricting cash advances, or adding fees for foreign transactions. Familiarizing yourself with these rules helps you avoid fees and potential complications.

Reading the terms and conditions is a big deal. It tells you what you can and can’t do with your card and what you’re on the hook for as a cardholder. It’s your ticket to a smooth credit card ride

Seek Advice and Read Reviews

When you’re almost ready to pick a credit card, it’s smart to ask for advice and check out reviews. Hearing from other folks who’ve used the card can give you the lowdown that you can’t get from the card’s official info.

  • Ask for Recommendations: Talk to friends, family, or co-workers who’ve got credit cards. They can share real-life experiences on the pros and cons of their cards. You might get the scoop on how they’ve used the card and if it’s been a win for them.
  • Read Credit Card Reviews: Plenty of financial websites and publications lay out credit card reviews and comparisons. These reviews give the lowdown on the card’s features, rewards, fees, and what users have to say. Look for reviews from sources you trust to grab unbiased info.

Nonetheless, remember, what works for one person might not be good for another. Use recommendations and reviews to get more information in your search for the perfect credit card.

Apply for the Card

So, you’ve done your research, weighed the options, and found the credit card that’s your perfect match. Now it’s time to actually apply for it. Here’s what to know about the application process:

How to Apply: In India, most credit card issuers let you apply online. Check out the issuer’s website to find the application form. The general steps look like this:

  • Pick Your Card: Choose the exact credit card you want based on your research.
  • Personal Info: Fill in the application form with your deets, like your name, address, birthdate, and contact info.
  • Docs: Gather up the paperwork they want, which might be ID proof, address proof, income proof, and recent passport-sized photos. The exact documents can vary from issuer to issuer.
  • Eligibility: Make sure you hit the eligibility targets the issuer sets, like age, income levels, and credit score.
  • Submit Your App: Go over your application to check it’s all right, and then click to send it in.
  • Docs You Might Need: Common documents include your passport, Aadhaar card, PAN card, voter ID, driver’s license (for ID), recent utility bills, a rental agreement, or your Aadhaar card (for address proof), salary slips, bank statements, or income tax returns (for income proof), and new passport-sized pics for ID checks. And even though it’s not a paper, your credit score might be looked at when you’re applying.
  • Credit Card Approval and Activation: After you throw in your application, the issuer will give it an once-over. It can take anywhere from a few days to a few weeks to get your answer. Once they give you the green light, you usually get an email, SMS, or snail mail notice.

You’ll also get your credit card in the post, along with a Personal Identification Number (PIN). You need to activate your card the way they tell you to. It could be a toll-free number to call, a website to visit, or a mobile app to use. Once that’s done, you’re all set to start swiping your card for buys and transactions as the card’s terms say.

Use Your Credit Wisely

Choosing the best credit card is the first step in your financial journey. But it’s just the start. You also use your credit responsibly to get the most out of your card and keep your finances on track. Here’s how:

Smart Credit Card Moves

  • Pay on Time: Always make at least the minimum payment on your credit card bill by the due date. That way, you dodge late payment fees and bad marks on your credit score.
  • Pay in Full: Whenever you can, pay your card balance in full every month. That way, you don’t pay interest on what you carry over.
  • Stay in Budget: Stick to your budget and don’t use your credit card for stuff you can’t pay off in the billing cycle.
  • Check Your Statements: Look over your credit card statements often. Make sure they’re right, there aren’t any mystery charges, and you’re not overspending.
  • Set up Alerts: Lots of credit card issuers let you get emails or texts with updates on due dates, low balances, and big transactions. Sign up for these to stay in the loop.

Budgeting and Tracking

  • Make a Budget: Set up a budget every month to cover your income and costs, like credit card payments. This helps you keep your finances in line.
  • Watch your Spending: Use tools like mobile apps or budgeting software to track your spending. They show where you can save.
  • Emergency Cash: Make an emergency cash stash to cover surprise costs. This way, you don’t need your credit card when stuff happens.

Paying On Time

  • Automatic Payments: Set up automatic payments for your credit card bill. It’s like insurance that you’ll never miss a due date.
  • Paying Options: Most credit cards let you pay through different ways, like online banking, mobile apps, or with a check. Pick the one that suits you best.

Credit Score Check

  • Credit Report Look: Check out your credit report often to make sure it’s right and there aren’t any signs of identity theft or fraud.
  • Credit Score Watch: Think about using credit score monitoring services or apps that give you regular score updates.

Avoid Credit Card Traps

  • High-Interest Debt: Be careful about piling up high-interest credit card debt. Avoid using your card for cash advances, and be aware of the interest rates.
  • Responsible Balance Transfers: If you use balance transfer offers, have a clear plan to pay off the moved balance within the deal time.
  • Skip Minimum Payments: Pay more than the minimum amount due when you can. It cuts interest charges and gets your balance down quicker.

By using your credit wisely, you get all the goodies from your credit card, keep a solid credit score, and dodge money problems. Finally, remember that choosing the right credit card is all about fitting your financial goals and lifestyle. It’s like a magic wand that makes your money life more awesome. So take your time, do your research, and choose a card that works best for you. When you use it right, your credit card is a big boost for your finances.

For personalized recommendations or to compare specific credit cards, you can visit the websites of major banks and credit card companies in India or consult a financial advisor.


How banks charge you for using these

How banks charge you for using these

How banks charge you for using these

As a banking product, debit cards have gained in popularity over recent years, with more and more consumers swiping these more and more. Sample this – while debit-card usage in ATMs dropped by 18 per cent between August 2013 and August 2018, its usage at point-of-sale (PoS) outlets increased by 200 per cent during the same period. At the same time, this is also true that when a certain product begins to be used extensively, the negative features/fallouts come to the fore. In the following report, we will focus on these aspects and also assess the various banks’ offerings on some standard parameters.

For this study, we chose private banks mainly because they are more aggressive in their approach in providing latest technologies to customers, as compared to nationalized banks. Among the private banks, we considered their people-to-bank network ratio in the country as measured in the number of branches serving customers. Narrowing it down, we selected those private banks that were operating more than 500 branches in India.

What are e-payments?

An e-payment system is a way of making transactions or paying for goods and services through an electronic medium, without the use of cheque or cash. It’s also referred to as an electronic payment system or online payment system.

The final 12 banks were compared on their charges, if any, for services/facilities such as card issue, annual maintenance, PoS transactions, transactions per month at ATMs (own bank), ATM-transaction fee (beyond limit), international card-transaction fee, renewal of card, and issue of duplicate card/PIN. We gave the highest weightage (20 points) to customer feedback, which also helped in determining the most important and beneficial variables. These variables have a direct bearing on the product structure. Our questionnaire covering various features of banks’ debit cards received responses from more than 500 customers.

In India, total debit cards in circulation as on November 2017 was 731,332,595 and this grew to 805,522,146 as on August 2018, thereby registering about 109% growth. Consequent growth in rupee value was 2,492,721.70 Mn (November 2017), as against 2,759,761.00 Mn (August 2018), which is a jump of 109.67%.

CV Recommendations

Best Buy

Yes Bank

Good Buy

Tamilnad Mercantile Bank

Fair Buy

Karur Vysya Bank


CV Weightage Points (100) e-Payments thru Debit Card Yes Bank Tamilnad Mercantile Bank Karur Vysya Bank Federal Bank Lakshmi Vilas Bank Karnataka Bank HDFC Bank Axis Bank IndusInd Bank City Union South Indian Bank Bandhan Bank
10 Card-issue fee 149 (4) Nil (10) 125 (7) Nil (10) Nil (10) Nil (10) NS (0) Nil (10) 249 (2) Nil (10) 200 (2) 200 (2)
10 Annual-maintenance fee 149 (4) 100 (7) 175 (2) 150 (4) 100 (7) 150 (4) 200 (2) Nil (10) 249 (2) NS (0) 200 (2) 200 (2)
5 Renewal of card fee 149 (3) NS (0) Nil (5) Nil (5) NS (0) NS (0) 200 (1) NS (0) 249 (1) Nil (5) NS (0) NS (0)
5 Issue  of duplicate PIN fee 50 (3) 50 Nil (5) 50 (3) 100 (1) NS (0) 50 (3) Nil (5) 20 (3) NS (0) 100 (1) NS (0)
5 Duplicate-card fee 149 (3) 200 (3) 100 (5) 300 (1) 200 (3) 100 (5) 200 (3) NS (0) 249 (1) 250 (1) NS (0) NS (0)
10 PoS transaction charge (%) NS (0) Nil (10) NS (0) 2.5 (5) NS (0) 2.5 (5) Nil (10) NS (0) NS (0) NS (0) NS (0) NS (0)
10 Free transactions per month at ATMs (own bank) (no.) Free (10) Free (10) Free (10) NS (0) Free (10) 8 (7) 5 (4) 4 (1) Free (10) NS (0) NS (0) Free (10)
10 Free transactions per month at other banks’ ATMs (no.) 5 (4) 5 (4) 5 (4) Free (10) 3 (1) 8 (7) 3 (1) 4 (2) 5 (4) 5 (4) 5 (4) 5 (4)
5 ATM transaction fee (beyond limit) 20  (3) 20  (3) 20  (3) 20  (3) 18 (5) 20  (3) 20  (3) NS (0) 20  (3) 20  (3) 20  (3) 20  (3)
5 International card-transaction fee (cash withdrawal) 120 (5) 100 (5) 125 (5) 100 (5) 100 (5) 150 (2) 110 (5) NS (0) 125 (5) NS (0) 150 (2) 125 (2)
5 International card-transaction fee (balance enquiry) 20 (5) NS (0) 25 (2) 25 (2) 25 (2) 25 (2) 25 (2) NS (0) NS (0) NS (0) 25 (2) 25 (2)
20 Customer feedback 18 6 5 3 4 2 10 8 3 6 2 1
Total 62 61 53 51 48 47 44 36 34 29 18 29


a) Information given here has been sourced from banks’ websites and brochures as on 03-12-2018.

b) Unless specified otherwise, all figures are in rupees.

c) NS – not specified

d) For the purposes of this study, we have considered only those private banks that have 500 or more branches in India.

e) The figures mentioned above pertain to metropolitan branches.

f) In many banks the GST is included in service charges and is hence not specified here.

g) Charges for services described differently in nomenclature are grouped under major heads.

There are usually two types of charges on a debit card. One is the annual fee that a bank charges for issuing the card to the customer. The other is the convenience fee that is charged at merchant outlets for swiping the card at a point-of-sale (POS) terminal.
A customer is entitled to eight free monthly transactions at an ATM (five at their home bank ATMs and three at non- home bank ATMs) in a metro city. Thereafter, a bank charge is levied on each ATM transaction.

The Advantages in Digital Transactions

  1. The biggest advantage is convenience. Customers can pay for items on an e-commerce website at anytime and anywhere. They just need an internet-connected device. 
  2. Lower transaction costs and decreased technology costs make it more convenient and simple.
  3. Transactions are made in seconds without wasting customer’s time. 
  4. One can always check their virtual account and keep track of their transaction history.
  5. One can reach more clients from all over the world, resulting in more sales.

And the Limitations 

  1. Difficult for a non-technical person: Most of the digital payment modes are based on mobile phones, the internet and cards. These modes may be somewhat difficult for a layperson to understand and accept.
  2. The risk of data theft: Hackers can attack the servers of the bank or the e-wallet you are using and get your personal information. They can use this information to steal money from your account.
  3. Overspending: You keep limited cash in your physical wallet and may think twice before buying anything. In digital payment modes, you have all your money with you always. This can result in overspending.

Do These

  • Sign immediately on receipt of the debit card (at the back).
  • Change the PIN at frequent intervals. 
  • During PoS transactions, ensure that all relevant details are correct before putting your PIN number so that the card does not get declined (some banks make it applicable for international
  • Use the debit card only on reputed websites, be it for using through the internet or through a
  • Retain the transaction confirmation receipt after using the debit card.
  • Be sure to check the card statement and report immediately to your bank if you find any transaction that is suspicious in nature or has not been authorized by you.
  • Keep the bank’s phone number handy in case of a lost/stolen debit card so that the card can be immediately blocked from misuse.
  • Link your mobile number/email to your debit card/bank account. 

Not Any of These, though

  • Do not click on the ‘save’ option for storing card details and/or password, as it can become accessible to accidental users.
  • Avoid using computers at cyber cafes or at any other public place for online transactions.
  • Do not respond to, or continue a call from, any number that requires you to disclose card/account details or any other vital information, as none of the banks would ring you up/send email for seeking such information.
  • Avoid obvious/easy-to-guess PIN numbers – for example, car number, date of birth, house
  • Do not lend your debit card to anyone as this card is non-transferable and there is no guarantee that the user will keep it secure.
  • Do not immediately throw the charge transaction slip generated by an ATM; carry it with you and throw it somewhere else. This will ensure that scamsters/fraudsters do not misuse the details available in the slip.

Banks have introdu+ced chip-enabled credit/debit cards to enhance data security. Customers need to contact their banks and complete the formalities for exchanging their old cards for the new chip-based debit cards.

Fraudulent Transactions and Liability of the Cardholder 

Reserve Bank of India, in its circular dated 06.07.2017, spelled out zero liability and limited liability.

  • Zero liability

A customer’s entitlement to zero liability shall arise in the following events:

  1. Contributory fraud/negligence/deficiency lies on the part of the bank
  2. Third-party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system, and where the customer notifies the bank within three working days of receiving the communication from the bank regarding the unauthorized transaction
  • Limited liability

A customer shall be liable for the loss occurring due to unauthorized transactions as under:

  1. Negligence by customer: Cases where the loss is due to negligence by a customer, such as where he has shared the payment credentials, the customer will bear the entire loss until he reports the unauthorized transaction to the bank. Any loss occurring after the reporting of this unauthorized transaction shall be borne by the bank.
  2. Delay in reporting or customer’s liability is not proved: Cases where the responsibility for the unauthorized transaction lies neither with the bank nor with the customer, but lies elsewhere in the system, and where there is a delay (of 4 to 7 working days after receiving the communication from the bank) on the part of the customer in notifying the bank of such a transaction, the per-transaction liability of the customer shall be as delineated in the accompanying table.
    Type of Account Maximum Liability (Rs)
    Basic SB deposit accounts 5,000
    All other SB accounts, prepaid

    payment instruments and gift cards, etc.



    All other accounts and credit cards (above particular limits) 25,000

    Summary of Customer’s Liability


    Time Taken for Reporting Fraudulent Transaction Customer’s Liability (Rs)
    Within 3 working days 0
    Within 4–7 working days The transaction value or the amount as mentioned in the table below (on maximum liability), whichever is lower
    Beyond 7 working days As per bank’s board-approved policy


    Reversal Timeline for Zero Liability/Limited Liability of Customer

    • On being notified by a customer, the bank shall credit (or by reversal of debit) the amount of unauthorized transaction back to the customer’s account within 10 days without waiting for the settlement of insurance claim, if any. The credit or reversal of debit shall be value-dated so as not to cause loss of bank interest to the customer on the transaction. Banks may also at their discretion decide to waive off any customer liability even in cases of customer negligence.
    • Where the bank is unable to resolve the complaint or determine the customer liability within 90 days, it will be liable to pay compensation (the like amount of the alleged unauthorized transaction) to the customer.
    • The customer is also entitled to no loss on account of bank interest on the unauthorized transaction (in case of debit cards).

    Shape of Things to Come?

    • Mobile wallets will soon be linked to your bank account so that there is a two-way funds transfer between them (loading mobile wallets through debit to bank account, and vice versa).
    • The quick response code (QR Code) is going to be the future app for all payments in merchandise purchases, as merchants accepting QR code will have to shell out only Rs 50 (a PoS machine can set a merchant back by Rs 6,000 to Rs 10,000).
    • Plastic cards (credit/debit/ATM cards) may soon be replaced by Aadhaar-enabled payment systems (AEPS) wherein all you will have to do is affix your fingerprint(s) after feeding your Aadhaar number to withdraw/conduct cash/transactions.
    • Some banks have already introduced the finger-identified system in their in-house ATMs, though on a smaller scale, which in future could be the norm for conducting ATM transactions.
    • Voice recognition may also become the future norm in personal identification processes.


    1. Choose a debit card that can be used globally if you are a frequent traveller abroad.
    2. Choose one where there is no annual fee or a minimum annual fee.
    3. Go for a debit card with a bank where there is an effective grievance redressal mechanism.


    How to Use a Debit Card Online Safely: Debit Card Safety Tips You Mustn’t Ignore

    How to Use a Debit Card Online Safely: Debit Card Safety Tips You Mustn’t Ignore

    If you have never used a debit card before and you have questions like how to use a debit card online or how to use a debit card online safely, then you must read on. Here you can know the basics of debit card use and learn valuable debit card safety tips.
    According to stats, the transaction value in digital payments segment was more than USD 50,000 million in 2018 in India, and it is expected to reach more than USD 127,000 by 2023. It can be estimated that transactions worth millions of USD are done by debit cards as well because it is a popular online payment method in India.

    How to use a debit card online?

    The answer of how to use a debit card online is mentioned below:

    • Visit the website where you wish to shop for products or services
    • Select the products you want to buy or services you want to avail
    • Add the products/services to the cart and visit the checkout page
    • When provided with payment options, select debit card as the preferred mode of payment
    • Provide basic details like debit card number, CVV, the expiry date of the card
    • Provide a one-time password or a 6 digit 3D secure PIN 

    How to use a debit card online safely?

    • If you want to learn how to use a debit card safely online during every transaction, then do remember these simple debit card safety tips.
    • Try to do online transactions on your personal computer that has a quality security software. Avoid public networks and computers whenever possible.
    • Type in the name of the URL and double check the spellings. Avoid URLs with http and opt for URLs that start with HTTPs.
    • Never save your debit card information on the browser you use. It might be vulnerable to hackers, and even other people who use your computer can misuse it.
    • Never share your debit card information in an email because scammers only request for such information via email. A reputed brand will never do that.
    • Enable SMS alert for each of your debit card transactions. It will allow you to know as soon as a transaction is made and you will be able to recognize whether you approved a transaction or not.
    • Check your banking emails, account statements and passbook regularly to detect any unauthorized transactions.
    • In case you find an unauthorized transaction, make sure that you report it to the bank as soon as possible. You can also get the police involved if the amount is too big or the bank is not helping you.

    The answers to how to use a debit card online and how to use a debit card online safely are quite simple for those who want to learn the process. Only a few simple debit card safety tips can ensure that your debit card is ever misused and you don’t lose any money just because you opted for a convenient and time-saving way of shopping.


    Is it safe to shop online with a debit card?

    Is it safe to shop online with a debit card?

    If you are an Indian consumer who often wonders is it safe to shop online with a debit card then you should know the answer is yes. You just need to ensure that you become a smart person and avoid pitfalls that can compromise your financial information and lead to fraud.

    Here Consumer Voice will guide you on how to use debit card for online payment or how to use debit card online purchases while ensuring the safety of your confidential information. Read on the tips and follow them for as long as possible.

    • Choose the right bank

      Though many people take it for granted, choosing the right bank matters when it comes to the safety of online transactions. While selecting a bank, you should pick one that has opted for additional debit card protections for the consumers and goes beyond the ordinary rules to ensure that consumers don’t have to bear the costs if they have been a victim of online fraud.

    • Check the bank statements regularlyMake it a rule to check your bank statements every week to ensure that you get to know of any fraudulent transaction as soon as possible. Remember, if you report a fraud too late, the bank will have the power to deny you the money, and you will have to bear the entire loss.
    • Remember pin protection

      Never share your PIN with anyone, be it someone claiming to be a bank employee or the ATM guard who wants to help you get cash instantly. Never write it down but memorize it. If you can’t remember the PIN by memory, make it cryptic like adding a zero after every digit while noting it down to ensure extra protection. If possible, use the debit card in credit mode to get extra liability protection from some banks.

    • Learn basic security rules

      There are some basic security rules you should know like using a website with https:// for financial transactions and avoiding transactions on websites that have only http:// at the beginning of the URL. You should also use ATMs at bank branches whenever possible as hacking them id difficult due to the presence of security cameras. Also, don’t use public wireless access for any financial transaction. Small things can make a huge difference in keeping you safe.


    It is quite clear that the answer to is it safe to shop online with a debit card is yes if you learn to be a smart consumer. If you remember the tips above on how to use debit card for online payment or how to use debit card online purchases safely then you will remain protected for long and reduce the probability of being vulnerable to an online transaction fraud.


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