Online Money Transfer from Debit Card

Updated: 14-06-2018 09:51:45 AM

With today’s modernised banking system, online transactions have become an essential part of people’s lives. Most people prefer making online payments and online money transfer from their debit card because it’s easy and hassle-free while the others do not want to go to ATM and withdraw cash for every small thing. You can now keep only necessary amount of money in your wallet as you can cover a large part of your expenses through your debit card. Online money transfer through debit cards has everything sorted for you.

Online Money Transfer from Debit Card:

Online money transfer from debit card is a type of wire transfer performed through debit cards. These types of wire transfers do not require the account details of the sender. It only requires the details of your debit card such as debit card number, name on the card, card expiry date, and CVV number. Online money transfer from debit card is an easy and safe way of making payments and sending money.

Online Money Transfer from Debit Card Process:

Your debit card can be used for making payments and sending money across various channels. It can be used for sending money to e-wallets and mobile wallets such as Paytm, Amazon Pay, Mobikwik, etc. Sending money to these e-wallets or mobile wallets can be in form of shopping, paying utility bills and for depositing money into someone’s personal wallet account.

You can also use your debit card for direct online money transfers. This includes merchant payments, utility bill payments, credit card bill, mobile recharge, etc. All these operations are a part of online money transfer.

Benefits of Online Money Transfer through Debit Card

Role of Payment apps in Promoting Money Transfer from Debit Cards

Benefits of Online Money Transfer through Debit Card

Online money transfer from debit card has several benefits to offer. Some of the important benefits are mentioned here.

No Requirement of Confidential Bank Details: Online money transfer from debit card does not require the bank details of the recipient. Whether you are transferring money through a payment gateway into someone’s e-wallet/mobile wallet or you are paying for online shopping, you would only require the mobile number of the receiver and in the case of online payments, you do not even need that. The gateway will directly transfer the money into the merchant’s account.
Availability: You can transfer money through your debit card 24/7 and 365 days. This is quite opposite to the traditional net banking mediums such as NEFT and RTGS that are not available on bank holidays. This feature of debit cards makes them a handy tool in the event of an emergency where you have to transfer funds immediately.
Convenience: Transferring money from debit card is easy. You just have to enter your card details and the authorised amount is transferred. It does not take more than a minute for debit card transfer. It especially helps in the case of an emergency where you cannot be physically present for fund transfer. Your debit card also performs the task of payment authentication for you as only you are authorised for making payments from your card.
Safe and Secure: Money transfer from debit card is secure as the gateway will transfer money only to the designated account. These gateways protect your sensitive information through modern data encryption techniques that are almost impossible to crack. Entering wrong card details would also not affect as you would not receive OTP (One-Time Password) which is the final step for completing the transaction. Even if the OTP is sent to the wrong person whose details you have entered by mistake, the transaction will not proceed. You can be assured that no one else would be able to misuse your debit card for online money transfer as you will receive the OTP on your registered mobile number for the transaction.
No Requirement of Physical Records: Transferring money from your debit card allows you to keep all your payment information at one place. You receive a text message on your registered mobile number from each transaction stating how much money you transferred. The text messages act as a record that can be referred in future for tracking. This is also environment friendly as it saves a lot of paper in the form of receipts and bills.
Tracking: Online money transfer from debit card lets you keep a track of your weekly and monthly expenditure. These electronic records provide you with sufficient proof that you made payments on time. Online payment services and mobile banking applications offer features such as payment history and m-passbook that help you track and manage your expenses. This also helps in filing ITR and managing investments.
Budget Discipline: Electronic payment records do not require any maintenance and are accessible anytime. This helps in budgeting. Several mobile applications are there to track your transactions so that you can analyse your own expense patterns and alter it over a period of time. This eliminates unconscious spending and helps you make better investments. Keeping a budget discipline reduces budgetary leaks that can sneak up to you at the end of the month.
Discounts and Small Rewards: Using your debit card for fund transfer and payments also offers you small discounts, free gifts and cashbacks. Many banks offer service tax waiver, fuel surcharge waiver and considerable discounts on booking railway tickets and rail catering, along with discounts on highway tool, insurance premium, restaurant bills among others.

Role of Payment apps in Promoting Money Transfer from Debit Cards

The emergence of various gateways has also promoted online debit card transactions in the country. Popular payment gateways and mobile wallets such as Paytm, Freecharge, Mobikwik, Amazon Pay, Airtel Payments Bank, Phone Pay, etc. have made money transfers and payments far easier. Such gateways also offer attractive gifts and discounts on payments made to selected merchants. Popular private sector banks such as ICICI, HDFC and Citibank have ties with a few popular payment gateways and these banks offer significant discounts on payments made through their debit cards. Both payment gateways and banks have created a win-win situation for each other through such partnerships.