Nothing's free in Free-for-Lifetime Card

RISKY PROPORTION: If you lose your debit card, the account balance actually gets cleaned out.

      

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New Delhi: With a high percentage of Indians going on a spending spree, more and more Indians are using credit cards today. However, many people do not fully understand the usability of the product, leading to major problems and financial losses at times.

Two experts in this field – Roopam Asthana of SBI Card Services and Bejon Mishra of Consumer Voice – shared some tips to make your credit cards work for you on the CNN-IBN Money Special programme, Swipe Smart-2. The interaction was moderated by Fatima Karan.

Roop Kishan Chowdhary from Hyderabad asks: Why are credit cards less secure than debit cards?

Roopam Asthana: The two products are fairly different from each other. It is important that we understand the difference between the two. When you use your debit card, charges are debited straight away from your bank account whereas when you use your credit card, you get a bill at the end of the month.

In my point of view, the debit card is a little more risky than the credit card because if you lose it, the account balance actually gets cleaned out.

Basically there are two concepts that underline these two cards. The concept for the debit card is - buy now pay now and the concept for the credit card is – buy now pay later when your monthly bill comes to you.

Rishab Gupta asks: I want to know the difference between Master Card, Visa card and other forms of cards.

Roopam Asthana: Let me talk about this from a consumer’s point of view, and from a consumer point of view what really makes a difference is acceptance of these marks when you carry them into a merchant outlet.

From our point of view on what we have seen in the market is that it is that, most terminals which accept Master Cards also accept Visa cards and vice and versa.

As for some of the other marks that are available on credit cards, the acceptance is not good as a Master Card or a Visa card.