A debit card is an expenditure card that subtracts money directly from a linked bank account when making a buy.

Debits cards are generally linked to a particular bank account belonging to a customer. Banks provide customers with debit cards for every savings, current or overseas accounts they open. In some cases a single debit card can also be linked to multiple bank accounts.

A debit card allows a user to purchase goods at merchant outlets or online stores and also doubles up as an ATM card to perform various bank transactions and withdraw cash. When a debit card swipe happens, the money comes directly out of the customer’s bank account and is immediately transferred to the merchant. Instant payments with instantly available cash.

Unlike credit cards, debit cards do not require bill payments on a later date as the money is paid then and there. Debit card users receive monthly statements which give them an idea about their card spends and ATM transactions, helping them track and plan their expenses.

Merchant Discount Rate on Debit Cards

The Merchant Discount Rate (MDR) has been modified by the Reserve Bank of India and is now effective as of January 1, 2018. The amount the vendor or retailer must pay the card association (Visa) for each transaction is known as the Merchant Discount Rate. According to the modifications made by the RBI, the MDR will no longer be based on the current slab-based structure but rather the merchant's or company's annual revenue. 

The MDR is applicable to all transactions, including those made online and using a QR code, in addition to those made at POS terminals. As previously stated, businesses will be charged based on their annual sales and are divided into two groups: businesses with sales of up to Rs. 20 lakh and businesses with sales of more than Rs. 20 lakh. For transactions made online or at POS terminals, a cap of 0.40 percent or Rs. 200 would be applied to merchants with a turnover (prior financial year) up to Rs. 20 lakh. The maximum MDR for QR-based transactions will be Rs. 200 or 0.30 percent of the transaction. For merchants with a turnover (previous financial year) more than Rs.20 lakh, the applicable MDR for transactions made at POS terminals or online will be limited to 0.90% or Rs.1,000. For QR-based transactions, the MDR will be capped at 0.80% or Rs.1,000 per transaction. 

Merchant Category

Merchant Discount Rate (MDR) for debit card transactions

For POS Terminal and Online Transactions

For QR-Based Transactions

Merchants with a turnover up to Rs.20 lakh (based on previous financial year)

Limited to 0.40% or Rs.200 (per transaction)

Limited to 0.30% or Rs.200 (per transaction)

Merchants with a turnover above Rs.20 lakh (based on previous financial year)

Limited to 0.90% or Rs.1,000 (per transaction)

Limited to 0.80% or Rs.1,000 (per transaction)

Payment cards such as ATM cards, debit cards, and credit cards are provided by banks to their customers so they can conduct particular types of transactions. In addition to making your purchases simple and convenient, certain shops use it for billing. Banks today are attempting to increase the value of the services they provide, thus the cards include numerous offers and discounts. The fact that card transactions are secure and lessen the need to carry large amounts of cash is their most apparent advantage. Given below are some of the main differences between an ATM card, debit card, and a credit card. 

ATM Cards

  • ATM cards can be used only at ATM machines to withdraw cash
  • You will require a Personal Identification Number(PIN) to carry out a transaction
  • An ATM card is linked to your current account or savings account maintained in the bank
  • The card does not offer credits and hence money is deducted on a real-time basis
  • ATM withdrawals charge you a fee if the transaction is being carried out in an ATM machine of a different bank

Debit Cards

  • Debit cards come with almost every feature of a credit card even though it doesn't allow credits
  • Just like an ATM card, you will require a four-digit Personal Identification Number to complete your purchases
  • In addition to ATM machines, your debit card can be used at stores or restaurants and can also be used for online payments
  • There are usually two types of debit cards—Visa debit cards and rupay debit card
  • Much like ATM cards, the debit card allows you to use the money from your savings account
  • It is different from a credit card as the customer does not have to pay interests or make a repayment schedule

Credit Cards

  • Though credit cards facilitate ATM withdrawals, it is mostly used as a loan option and is issued by the bank after reviewing your creditworthiness
  • Your application for a credit card is impacted by your credit score. Applying for too many credit cards could hurt your rating overall. 
  • It allows you to purchase any product that is within your spending limit and make payments later
  • It offers attractive discounts on certain brands and services
  • Besides standard and premium versions, there are many variants in credit cards which offer a wide range of activities, right from shopping and dining to booking an air ticket.

HDFC Easy Shop Platinum Debit Card

  • HDFC Easy Shop Platinum Debit Card offers No-cost EMI on popular electronic brands.
  • Nourishes Complimentary Lounge Access twice per Calendar Quarter.
  • ATM Limit per day: Rs.1 Lakh. Furthermore, Get 1 cashback point on every Rs. 200 spent.
  • You will get a shopping Limit per day: Rs.1 Lakh.

HDFC Millennia Debit Card

  • Get up to Rs. 4800 cashback every year
  • HDFC Millennia Debit Card exhibits four Complimentary Domestic Airport Lounge access
  • Additionally, you get an ATM Limit per day: Rs.50,000
  • You will get a shopping Limit per day of Rs. 3.5 Lakh

Axis Bank Burgundy Debit Card

  • Axis Bank Burgundy Debit Card provides Complimentary Movie and Non-Movie Tickets
  • ATM Limit per day: Rs.3 Lakh
  • You will get shopping access per day for Rs. 3.5 Lakh. Plus, Enjoy Free ATM Transactions

ICICI Coral Debit Card

  • ICICI Coral Debit Card provides two Favourable lounge access
  • You will get a 25% discount on movie tickets.
  • They offer an ATM Limit per day to rs. 1.5 Lakh. Plus, International Transaction Limits Rs. 2 Lakh
  • You will get a Shopping Limit per day Rs. 5 Lakh

SBI Platinum Debit Card

  • You will get 2 Reward points for every Rs. 200 spent
  • SBI Platinum Debit Card also provides complimentary access to airport lounges
  • The ATM Limit per day is Rs. 1 Lakh
  • You will get a Shopping Limit per day Rs. 2 Lakh

Steps to Apply for a Debit Card Offline

  • You don’t need to apply for a debit card separately, and it is issued automatically while opening your savings or current bank account.
  • If you want a new debit card, Visit the appropriate bank you wish to get the atm card and fill in all the relevant application form details, then "submit" to the bank manager. In the next very few days, you will get a new debit card.

Steps to Apply for a Debit Card Online

Nowadays, All the Major banks like SBI, Union Bank of India, Bank of Baroda e.t.c Issue debit cards through an online process. Given step by step process to apply for a debit card online for the following banks:

How to Apply for an SBI Debit cum ATM Card Online?

Step 1: Visit the SBI official website at “”.

Step 2: Select the card based on your requirements and apply for the card.

Step 3: Within a few business days, you will receive the sbi debit card at your mentioned address.

How to Apply for a Union Bank of India Debit cum ATM Card Online?

Step 1: Visit the official website at

Step 2: Click on Apply for Online Debit Card. Pop-up the window saying, “If you already have an active debit card, Please do not apply for a debit card online”, Just click on “OK”. (Note: If you have exisitng union bank debit card, you are not eligible to apply online)

Step 3: Then, Submit the account number and enter cache details. Click on “OK”. You will receive the atm card in new few days.

How to Apply for a Bank of Baroda Debit Card online?

Step 1: Select the BOB atm card which fulfills your needs at

Step 2: Click on the card to download the form and submit it at the nearest branch.


Apply at by filling in all the required details and the bank executive will contact you soon.



Debit Card Features 

State Bank of India 

SBI offers a diverse selection of Visa and RuPay debit cards, tailoring the features to the needs of the consumer. Ten distinct debit cards, including personal and business cards, are available from State Bank of India. 

HDFC Bank 

With HDFC debit cards and safe online transactions, Visa platforms enable hassle-free cashless shopping. To its Indian clients, HDFC offers eleven debit card alternatives. 

Axis Bank 

Debit cards from Axis Bank come with a host of benefits and promotions, and consumers may even create a personalised debit card. There are 17 different debit cards available from the bank, divided into business, commercial, premium, and other category cards. 

Punjab National Card 

PNB debit cards are available in conjunction with RuPay and are recognised at several merchant locations across the world. Customers have a choice of five distinct debit card types and, if necessary, an add-on card. 

Canara Bank 

Customers who use a Canara Bank Visa debit card can take advantage of the convenience of cashless shopping. The Canara Bank debit card is available in two variations and is packed with special benefits and features. 

Bank of India 

The Bank of India debit card is a unique card that is available on the Visa and RuPay payment platforms and is accepted for both domestic and international transactions. BOI debit cards are tailored to each Indian customer's needs with a large selection of cards totaling up to 14. 

Bank of Baroda 

In collaboration with Visa, and RuPay, Bank of Baroda offers six distinct types of customised debit cards to meet the needs of its customers. 

Union Bank of India 

On the Verified by Visa (VbV) platform, Union Bank of India offers multi-account access and add-on overseas debit cards. Customers of Union Bank have access to two different types of debit cards, including a RuPay debit card. 

HSBC Debit Card 

Customers of HSBC's personal banking services have access to Visa-based debit cards, which can be used at numerous merchant locations and ATMs across the world. Customers can choose from 11 different types of debit cards offered by HDFC based on their savings account. 

IndusInd Bank 

On the Verified by Visa platform, IndusInd Bank offers a variety of foreign and platinum debit cards, as well as an engaging rewards program for clients. Depending on the type of account the user has, the bank offers four distinct types of debit cards. 


Customers who have Citibank debit cards can take advantage of a limitless number of benefits and add-on options. Citibank also offers savings accounts. 

Standard Chartered 

With a Standard Chartered debit card, you may access your bank accounts from anywhere in the world and take advantage of appealing benefits and promotions. A regular Chartered debit card, which is available in seven distinct variations, is an essential card. 

Most individuals with ATM cards usually use ATM machines for the sole purpose of withdrawing cash. However, ATM machines perform other functions as well. They include:

Payment of Utility Bills

Payments for services including power, insurance fees, and phone providers can be made using ATMs. These payments, however, can only be made if the invoices haven't already passed their due dates.

Requesting a Cheque Book

The ATM that belongs to the cardholder's bank allows them to request a new chequebook. One thing to keep in mind when requesting a new chequebook is to make sure the address given to the bank is current.

Making Credit Card Payments

Most ATMs have an option for paying credit card bills. However, it is essential that the payment is made at the ATM that is owned by the bank where the credit card was issued.

Paying Taxes

To use the service of paying their taxes at an ATM, cardholders must register. However, paying direct taxes is the only way to use this service. The money due will be deducted from the cardholder's account when they have enrolled for the service. The cardholder receives a Special Item Number (SIN) after the purchase has been debited, which they must use as a reference for paying their taxes.

Recharging Mobile Phones

Cardholders can recharge their pre-paid mobile numbers using their debit cards. To do this, go to the ATM operated by the cardholder's bank. The cardholder would have to confirm and authenticate the transaction by entering their mobile number and ATM PIN. 

With the use of a few clicks, customers may now complete many banking operations thanks to technological improvements in the banking industry. Nowadays, almost all banks provide internet banking services to enable consumers to rapidly transfer money to other bank accounts. Funds transfers can also be done via debit cards for those who do not use their bank's internet banking services.

While this facility is not available for all bank debit cards, but most of the popular banks do offer this facility to their customers. Money transfers can be made through ATMs using a debit card by following the steps listed below:

Step 1: Visit the bank ATM

Step 2: Insert the debit card and enter the PIN number

Step 3: Select the option titled 'Transfer'

Step 4: Enter the beneficiary's debit card number

Step 5: Enter the amount to be transferred

Step 6: Select the account type—savings or current

Step 7: Confirm the transfer

Funds transferred through an ATM card are credited instantly to the beneficiary's account.

Funds transferred through an ATM card are credited instantly to the beneficiary's account.


In India, a lot of banks provide cashback as rewards for using their debit cards. The consumer may redeem the reward and apply it to further purchases. Debit cards are available from a range of banks. The type of the debit card typically determines the reward system. Banks frequently form temporary partnerships with a variety of retailers. Customers who purchase goods and/or services from these businesses are eligible to receive cashback (sometimes other prizes). Take Amazon's Great Indian Sale or Flipkart's Big Billion Day sale as examples. Banks collaborate with the seller businesses during these sales to reward debit card and/or credit card holders.

How does the Cashback System Work on Debit Cards?

The method is really easy to follow. Every time a transaction is performed using one of their cards, card firms like VISA, American Express, MasterCard, Maestro, RuPay, etc. receive a specific proportion in the form of commission. These card companies receive a portion of each transaction's proceeds upon successful completion. The card firms provide the banks a little sum of money from these commissions. A tiny portion of this sum is used by the banks to give their clients cashback or reward points. The banks are doing this exclusively to give their goods an advantage. 

The State Bank of India (SBI) and HDFC Bank are two Indian banks that offer excellent cashback deals and reward point programs on their debit cards. There are numerous additional banks, both public and private, that frequently introduce new cards and new promotions for their debit cards. 

  • Debit cards are a convenient alternative to cash. You can easily carry it.
  • Provide greater security & that will help decrease the chances of fraud and misuse.
  • You can simply track your spending with segments like email & SMS alerts.
  • Providing a contactless payment option, that allows you to make purchases by tapping your card on the Point of Sale (PoS).
  • You can manage your account and track your spending on the debit card using the bank's mobile app or online portal.
  • Visa Debit Cards:(VbV) infrastructure for online transactions,Visa debit cards are issued
  • RuPay Debit Cards:NPCI as a domestic card Internet transactions on the Discover network ATM transactions on the NFSN.
  • MasterCard Debit Cards:Electronic transactions card, You can access your savings or current account excellent customer support offers various benefits and rewards
  • Contactless Debit Cards:
  • It operates on Near Field Communication (NFC), to make payments by tapping or waving them near PoS terminals.
  • Visa Electron Debit Cards:Visa debit cards & Visa Electron debit cards both cards work similarly. On these cards, the overdraft option is not available
  • Annual Maintenance Charges:This is an annual charge for Debit Card usage, commonly ranging from Rs. 100 to Rs. 500.
  • Card replacement charges: When replacing your ATM or Debit Card, some banks waive the fee for physical damage but charge Rs. 200 for lost cards.
  • Cash withdrawal charges:A debit card is usually utilised to permit frequent cash withdrawals & for a limited time. After a limited time, you have to pay a range from Rs. 10-rs. 30 for every transition.
  • International translation charges:You can use this debit card in a foreign country. The charges will be percentage-based.
  • POS charges:NO additional charges for buying through a debit card, but a fuel translation on a debit card, then surcharge applies 1%.

Every time you use a debit card such as Visa, Mastercard, American Express, Maestro, or Rupay. While you were paid through these cards, you get a cashback. Like in the form of rewards or money, they spend while shopping.

The abbreviation EMV stands for Europay, and Visa. They are the initial card systems that collaborated to develop the EMV technology. It serves as the universal benchmark for chip-based debit and credit card transactions. EMV was created to make sure that card transactions were secure and that the cards could be used everywhere. 

The various features of the EMV chip cards are mentioned below - 

EMV Chip Cards comes with a magnetic strip as well as a microchip. 

EMV Chip Cards are secure from fraud 

EMV Chip Cards helps issuer of the cards to get complete information about the payment history of the users. 

EMV chips have end-to-end encryption for transactions, making them highly protected.