Indian banks offer a variety of options to individuals for conducting financial transactions. People can pay for items and services that they purchase through banking cards. There are primarily three types of cards in India – credit cards, debit cards and prepaid cards. Here is a detailed look at the features of these cards.
Debit cards
These are the basic banking cards, which are assigned to an individual when they open an account in a bank. Through the use of debit cards, people can pay for items and services without cash. However, to ensure that the payment goes through, the bank account must have the required funds in it. For instance, if you pay Rs.3,000 through your debit card, the bank account associated with the card must at least have the same amount in it.
Debit cards are the most common form of banking cards in India. This is because no addition eligibility criteria need to be met in order to qualify for a debit card. Aside from this, using a debit card is much safer since it does not require a repayment to the bank at a later date. You are essentially spending your own money and not lending out a sum from the bank.
Credit cards
Credit cards are the second most common type of cards. Credit cards are issued by banks and through these an individual can purchase items and services on credit. This means that you may pay a certain amount of money, which you may not have in your own bank account. The bank essentially lends out this money. However, the card holder will have to repay the entire amount to the bank along with interest on a later date.
Credit cards are not issued to every person in the country. Each bank has a list of eligibility criteria, which must be met before one can apply for a credit card. Since credit cards are a form of short-term loan, the banks check the income of the individual along with the bank statements prior to the application for the card.
Prepaid cards
Prepaid cards or prepaid credit cards are form of banking cards, which bear resemblance to both standard debit and credit cards. With such a card, you are responsible for depositing a sum of money into the account prior to making any purchases. This money can then be spent on the items and services that you wish to buy.
In case of such cards, you are the one setting the credit limit and at the same time, you are not borrowing money from the bank.
Debit cards
These are the basic banking cards, which are assigned to an individual when they open an account in a bank. Through the use of debit cards, people can pay for items and services without cash. However, to ensure that the payment goes through, the bank account must have the required funds in it. For instance, if you pay Rs.3,000 through your debit card, the bank account associated with the card must at least have the same amount in it.
Debit cards are the most common form of banking cards in India. This is because no addition eligibility criteria need to be met in order to qualify for a debit card. Aside from this, using a debit card is much safer since it does not require a repayment to the bank at a later date. You are essentially spending your own money and not lending out a sum from the bank.
Credit cards
Credit cards are the second most common type of cards. Credit cards are issued by banks and through these an individual can purchase items and services on credit. This means that you may pay a certain amount of money, which you may not have in your own bank account. The bank essentially lends out this money. However, the card holder will have to repay the entire amount to the bank along with interest on a later date.
Credit cards are not issued to every person in the country. Each bank has a list of eligibility criteria, which must be met before one can apply for a credit card. Since credit cards are a form of short-term loan, the banks check the income of the individual along with the bank statements prior to the application for the card.
Prepaid cards
Prepaid cards or prepaid credit cards are form of banking cards, which bear resemblance to both standard debit and credit cards. With such a card, you are responsible for depositing a sum of money into the account prior to making any purchases. This money can then be spent on the items and services that you wish to buy.
In case of such cards, you are the one setting the credit limit and at the same time, you are not borrowing money from the bank.
No comments:
Post a Comment