What are the features offered by debit-cum-credit cards?

Business

02 Feb 2019

#FinancialBytes: 5 features of debit-cum-credit cards you should know about

Credit cards and debit cards play an essential role in our lives and are among the most widely-used cashless payment methods because of the convenience they offer.

The concept of debit-cum-credit cards, an innovative banking product that offers features of both debit and credit cards, has been gaining popularity over the recent years.

Here are 5 features of debit-cum-credit cards you should know about.

#1

A single card that has debit and credit card features

A single card that has debit and credit card features

One of the unique features of the debit-cum-credit card is, it is a single, 2-in-1 card that can be used as a debit card as well as credit card.

It works on the concept of overdraft benefit. Simply put, users enjoy overdraft facility on their debit card. One can use the card up to a pre-determined credit limit after exhausting the linked account balance.

#2: Cards have no joining or processing fees

Another good feature of the debit-cum-credit cards is that they usually come with no joining or processing fees. Card providers generally offer these cards for free with no initial charges. However, this varies from bank to bank and some might charge a nominal fee.

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#3

Interest rates are lower than regular credit cards

Another advantage of debit-cum-credit cards is, the interest rate on utilized credit (overdrawn amount) is low compared to the high interest rates of regular credit cards.

While "debit card spends" don't attract any interest, there's still a drawback. Cardholders are required to pay interest on the credit for the entire period, starting from the date of usage, as it doesn't offer any interest-free period.

#4: No charges on ATM cash withdrawals

One of the best features of the debit-cum-credit card is that - unlike a regular credit card - no extra charges are applicable on cash withdrawals at ATMs as the card also acts as a debit card.

#5

Special offers, reward points, insurance cover, and other benefits

Special offers, reward points, insurance cover, and other benefits

Just like normal credit cards, the debit-cum-credit cards also come with other additional features like the accumulation of redeemable reward points on spends, insurance cover benefit to the cardholder, discounts, etc.

Some cards also offer exclusive discounts, deals, or offers on transactions at various merchants.

However, the benefits offered by these debit-cum-credit cards might vary from bank to bank.

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Most asked questions

What are some credit cards with good reward programs?

What are some good debit cards for rewards?

How can I save money using credit card?

What are some credit card options for someone with no income?

More questions

What are some credit cards with good reward programs?

Asked 2019-02-02 23:23:58 by Rajesh Mukopadhyay

Answered by NewsBytes

Here are some credit cards offering good reward points and other benefits: Standard Chartered Platinum Rewards Credit Card, SBI SimplyCLICK Advantage Credit Card, YES FIRST Preferred Credit Card, HDFC Diners ClubMiles Credit Card, and Citi Rewards Credit Card.

What are some good debit cards for rewards?

Asked 2019-02-02 23:23:58 by Ishan Balasubramanium

Answered by NewsBytes

Debit cards are one of the most widely-used cashless payment methods. Here are 5 debit cards with good offers and benefits: State Bank Classic Debit Card, Axis Burgundy World Debit Card, IndusInd Signature Debit Card, IDFC Bank's Visa Signature Debit Card, and Axis Bank Online Rewards Debit Card.

How can I save money using credit card?

Asked 2019-02-02 23:23:58 by Aditya Dasgupta

Answered by NewsBytes

Credit cards can help you save money and earn rewards. Here's how: Avail discounts, deals, and cashback offers to save money using credit cards. Save on fuel purchases through fuel surcharge waivers or reward points. Avail travel offers, restaurant deals, and free movie tickets. Earn reward points for transactions and redeem them. Avail No-cost EMI and flexible EMI offers.

What are some credit card options for someone with no income?

Asked 2019-02-02 23:23:58 by Shaurya Jindal

Answered by NewsBytes

In India, some banks issue credit cards to people with no income, even students, against fixed deposits and strong savings accounts. Some options include: Axis Bank Insta Easy Credit Card, SBI Card Unnati, ICICI Bank Instant Platinum Credit Card, and Kotak Mahindra Bank's Aqua Gold Credit Card.

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