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Debit Cum Credit Cards: Should You Go For Them?


Most of the urban population nowadays prefers carrying plastic money such as debit and credit card as against cash, and there can be not just one debit or credit card, you may in fact possess more of them. So, if you intend to replace these cards with a dual card that serves as both a debit and credit card. Here we have the options for you from two leading banks:

Debit cum credit card options:

IndusInd Bank’s Duo Debit-cum-credit card:

IndusInd Bank’s Duo Debit-cum-credit card:

Last year powered by Visa, IndusInd Bank launched Duo card with the functionality of both debit and credit card.

Features of Duo card:

For every Rs.150 spent on shopping using Duo debit or credit card, customers get 1 reward point.

Duo card comes with a personal accident cover of Rs. 2 lakh

Also, such a dual card provides a host of offers targeted at millennials across travel, lifestyle and entertainment

There is a liability insurance cover for Rs. 3 lakh extended on Duo card. For claiming the cover, the cardholder needs to inform the bank about the loss or theft of the card at the earliest possible to deactivate the card for preventing fraudulent transaction on it. Also an FIR needs to be filed with the police. And herein for the period between the loss and your reporting at the bank, bank compensates for any financial loss.

Fees and charges: The duo card is offered in two variants namely plus and premier. For the plus card, bank charges one-time issuance fee of Rs. 1500 while for the other premier variant the charges are Rs. 3000. Also, there is an annual fee of Rs. 799 for both the variants.

Union Bank of India’s ‘Combo’ card:

Union Bank of India’s ‘Combo’ card:

Later in November 2018, the public sector bank partnered with Rupay to launch the bank's Combo card that combines the debit and credit card into one.

Features of Combo card: The unique Combo card by Union Bank offers personal accident cover of Rs. 4 lakhs.

As one-time issuance fee, the bank charges Rs. 200 but there are no annual charges for the Combo card as in the case of IndusInd Bank's duo card.

How debit cum credit cards work?

How debit cum credit cards work?

Appearance-wise these cards are similar to a regular debit or credit card but feature two chips located on the two opposite ends of the face of the card. One of the chip works as a debit card and is linked to customer's savings account while the other is linked to the credit account of the customer.

Further on the reverse side, there are two magnetic stripes, and as per the transaction customer needs to present a particular side at the ATM or POS terminal for carrying out the transaction.

Pros of Debit cum credit card

1. Offer convenience and flexibility as you now with such an offering can replace your multiple cards with a single duo card that offers both debit and credit facility. This way you can reduce the weight of your wallet as well that until now had multiple cards to carry out different financial transactions.

2. In respect of the transaction carried out using the dual card, customers are provided a single account statement at the end of every month, thus helping in keeping a track of expenses on credit as well as debit accounts through one statement.

Should you opt debit cum credit cards?

Should you opt debit cum credit cards?

These cards come with a restriction that both the debit and credit facilities on the dual offering are from the same bank. Whereas in a regular case, you select the credit card from the provider that offers benefits suiting your lifestyle such as zero surcharge on petrol, airlines miles card etc. So, the choices or offering that you get here might get limited.

Also, the problem here is that you due to your negligence may insert the wrong side of the card and may spend using your credit limit while you were intending to make the transaction via your savings account, thus adding to your trouble and credit burden.

So, as a wise choice, you should avoid these dual debit-cum-credit cards for now and remain happy with separate debit and credit cards.

Story first published: Tuesday, April 30, 2019, 16:17 [IST]
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