With the rise of digitisation, the banking industry has gone online. You need not deal with paperwork or carry cash physically anymore. Every transaction happens online. To increase convenience, banks offer Debit and Credit Cards, providing electronic access to your bank account. You can use the card to swipe and make physical transactions or link it online to make payments swiftly.
Using the card also provides instant cash through ATMs. It is the best way to make quick transfers without adding bank details. Also, discounts for shopping and making bill payments online are now possible immediately. Hence, consider a Credit or Debit Card if you have not already applied for one. However, such convenience comes with some associated costs. Let us understand them better:
Annual maintenance fees
Banks charge a service fee for the features associated with your Bank Account. Debit Cards, for instance, are one of them. Even if it comes with the welcome kit freely, you need to pay for its maintenance. This yearly fee is anywhere between Rs. 100 to Rs. 500. The amount could vary depending on the banks. Ideally, commercial banks charge higher.
Transaction costs
Banks have different policies for transaction fees. Typically, the transaction done through the same bank's ATM is free. However, this limits some monthly transactions on other banks' ATMs. You may get charged separately if you cross the limit of free transactions for a month. Even Credit Cards have credit utilisation limits, beyond which you are charged a fee.
This differs for domestic and international payments. Check the rules when you apply for a Credit card and Debit Card online.
Card replacement expenses
There are always chances of misplacing your card. Theft can happen with such cards. Also, physical damage due to wear and tear or mishandling affects its usage. Hence, banks have replacement options. They require the reason and let you apply the cards online. However, this comes at a cost. A replacement fee applies in such scenarios.
Duplicate PIN generation charges
There are occasions when generating a new PIN is crucial. You may forget or want to stay cautious when you lose your card. In both cases, new pin generation is best done at the ATM. The process is simple and quick. But since changing PIN hampers your transactions, it comes with a fee. You may get charged a nominal fee for using the regeneration service.
Understanding these charges lets you effectively use your Banking Cards.