Master Your Money: Debunking Myths About Debit Cards

Who doesn’t love a good bargain or getting the most mileage for one’s money? The fact is that most of us relish finding the best deal in town. So, why do credit cards and mobile payment apps often steal the spotlight when debit cards have so much to offer too?

One reason is the many misconceptions about debit cards, despite their prevalence and perks. From security concerns to doubts about their benefits, these myths might be stopping you from getting the bang for your buck. To clear up the confusion, we’re busting the top seven myths that may be holding you back from reaching your money mastery potential.

Myth 1: Debit cards are mainly for ATM cash withdrawals

Some believe debit cards are just for ATM withdrawals, but that's like saying smartphones are only for making calls! People use debit cards for a lot of things such as online shopping, dining out, and paying bills. Most debit cards from major Indian banks are linked to international networks like Mastercard, so you can use them almost anywhere in the world.

Myth 2: Debit cards only work with domestic currencies

Most debit cards work worldwide, converting your currency automatically. What’s more, many cards link to multi-currency accounts, letting you switch between currencies or lock-in FX rates to stay on budget. Plus, most cards often offer perks like zero-fee conversions and free overseas ATM withdrawals. So, whether you're buying batiks in Bali or perfume in Paris, your debit card has you covered.

Myth 3: Debit cards don’t offer exclusive deals & rewards

A lot of Indian banks now offer exciting deals and reward programs for debit card users too. Many provide cashback, discounts, and other perks. For instance the YES Private debit card, offered in partnership with Mastercard, is packed with exciting features including a 24X7 lifestyle concierge service, private jet, airport limo, chauffeured car services, vouchers from Oberoi Hotels and Resorts for reservations, dining, and spa experiences at select properties, and complimentary annual golf sessions and lessons.

Similarly, the SBM World Elite debit card, also offered in partnership with Mastercard, has exclusive privileges such as complimentary TAJ Epicure membership, unlimited airport lounge access, private jet privileges, and 0% FX cross-currency markup. Check with your bank about their debit card rewards—you might be pleasantly surprised!

Myth 4: Debit cards don’t offer protection against fraud

Modern debit cards have security features like EMV chips, PIN verification, real-time SMS alerts, 2FA (two-factor authentication), and biometric verification, significantly reducing fraud risk. In fact, Mastercard debit and credit card payments are processed on the same network, which means they’re protected by the same advanced security features and anti-fraud protection. Plus, most debit cards also offer liability protection, with banks often providing zero or limited liability on fraudulent transactions so you’re not on the hook for unauthorized charges. Some cards even offer protection for e-commerce purchases, in case issues arise, such as non-delivery of your items.

Myth 5: Debit cards don’t work with mobile payment apps

Many believe mobile payment apps like Alipay, Samsung Pay, Apple Pay, or Google Pay only work with credit cards. However, most debit cards can be linked to these apps for secure, contactless payments with your smartphone or smartwatch, allowing you to enjoy the same advanced security and purchase protections. In countries like South Korea and China, linking debit cards to mobile wallets is already the norm.

Myth 6: Debit cards are for people who can’t get credit cards

There’s a common misconception that debit cards are just for those who can't get a credit card. The reality? Many people in Asia, including in India, who have a credit card (or cards!) also use debit cards to manage purchases and stick to a budget. In countries like India, where financial inclusion is growing, debit cards are often the first step into the formal financial system. Since you can only spend what you have, they're great for managing finances responsibly.

Myth 7: Debit cards have hidden fees and annual charges

While some banks charge for ATM withdrawals or currency conversions, these fees are usually transparent. In fact, most debit cards charge minimal or no transaction fees, making them accessible to most customers, while some even offer cashback or reward points.

So there you have it—7 debit card myths, busted!

By debunking these common myths, you can unlock the full potential of your debit card. They are a convenient, secure, and rewarding way to manage your finances. So, the next time you're making a purchase, consider using your debit card and enjoy the benefits.

The views and opinions presented in this article are of Mastercard for information purposes and do not constitute any financial advice.

Note to the reader: This article is part of Hindustan Times's paid consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.