Debit Cards: ATM cards on the move

One of the most common ways by which people purchase various products or services in today’s times, the usage of debit cards is increasingly becoming a popular mode of payment in the country. With two major service providers in the country; VISA and MasterCard it is easier to keep an account of the different payments that are made as they are recorded with each swipe or withdrawal from the bank.

Whether it is paying for a meal when going out to a resteraunt for lunch or dinner or paying for different clothes or shoes when out shopping there are many different reasons why people can use debit cards in India. It is very easy to apply for these cards online via the bank’s website. These cards are known for providing electronic access to one’s bank account at a particular financial institution.

These cards are known for having gained so much popularity in certain countries that they have even replaced payments made via cheques and even cash. These cards are known for permitting instant withdrawal of money from one’s bank account. These cards are also known to be popular means of carrying liquid money when travelling as well. Known to be popular means of making various international payments, many people prefer to carry their debit cards along with them when they travel overseas.

Recently, at the end of 2013 in December the Reserve Bank of India (RBI) had added an additional layer of security, in interest of the safety of customers. Customers now have to enter their ATM PIN while swiping their card in order to make any purchase. This has been a step in hope of reducing the fraudulent usage of cards. 

This has been in accordance with the fact that the RBI had brought about PIN validation on internet transactions almost three years ago; which had also led to an increased level of customer confidence as well as reducing the number of frauds that were happening.  

In fact, the RBI has mandated all of the card holders to only issue chip-plus-PIN cards to new customers; replacing the old cards with these new cards. In this new step, a combination of EMV chip as well as PIN is the highest level of security that can be offered for the card. Although this change has been introduced last year, owing to the high number of car holders across the country it will be a gradual process to shift the usage completely amongst all the card-holders.

Summary: Cashless transactions are increasingly becoming popular not only in India but across the world. People prefer making payments for different products or services by making use of debit cards in India or even by credit cards.