27 Jun 2016

Use Your Debit Card Instead of Netbanking

Let’s say you want to buy something online, paying from your bank account. You have two choices: you can use your debit card, or you can use netbanking.

If you’re thinking they are the same, the difference is that when you use your debit card, you enter your debit card information: card number, CVV, expiry date and name on card. Whereas, when you use netbanking, you enter your bank name and account number.

In both cases, the money is deducted from your bank account. What, then, is the difference?

The difference, according to Vijay Sekhar Sharma of Paytm [1], is that the terms and conditions for netbanking say that if things go wrong, like the wrong amount being debited, the bank disclaims all liability. The risk is yours.

Whereas, with a debit card, Visa and MasterCard force standard terms on the banks, which say that if it’s the bank’s mistake, the bank must refund the money to you. The risk is the bank’s.
Netbanking also has a poor user experience on mobile compared to debit cards.

So, when possible, use your debit card instead of netbanking.

[1] I can’t find the link, despite my best efforts. I thought it was an AMA.

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