Should You Go for a Debit Cum Credit Card?

Carrying different debit and credit cards of different lenders every time you go out can be cumbersome. Debit-cum-credit cards have eased the entire process of carrying credit cards and debit cards separately as these cards provide the facility of both.

Read on to know how these cards work!

What Is a Debit Cum Credit Card?

A debit cum credit card is similar to your everyday credit or debit card. It has the added facility of working both as a credit or a debit card. On the front of the card, there are two chips: one that works like a debit card (and is connected to your savings bank account) and another that works like a credit card. These two chips are positioned on the card’s two opposite extremities.

There are two magnetic stripes on the rear of the card in addition to the two chips on the front. The customer only needs to show a specific side at the point of sale (POS) system to swipe or dip, depending on the type of transaction (debit or credit).

What Are the Debit-cum-Credit Cards Available in India?

Currently, there are two debit-cum-credit cards that are available in India – Induslnd Bank’s Duo debit cum credit card and Union Bank of India’s Combo card. Let’s discuss the features of these two cards in detail: 

1. Induslnd Bank Duo Credit Card

This card is offered by IndusInd bank in collaboration with VISA. The features and benefits of this card are:

• Waiver of 1% fuel surcharge on expenditure of ₹400-₹4000 across all petrol pumps in India. 
• One movie ticket for free once a month by using this card to purchase tickets with BookMyShow. The free ticket has a maximum price of ₹250. (This holds for both debit and credit)
• One reward point for every ₹150 spent on all purchases.
• Low foreign markup charge of 2%.
• Lost card insurance of ₹3,00,000.
• Air accident insurance of ₹2,50,000.
• Personal accident insurance of ₹2,00,000 and purchase protection of ₹50,000.

In addition to the usual Duo card, this card comes in two other variants – Duo Plus and Duo Premier. The charges for using these variants are mentioned below.

• Duo Plus: There is a joining fee of ₹1500, annual fee of ₹799, and a voucher value of ₹1000.
• Due Premier: There is a joining fee of ₹3000, annual fees of ₹799, and a voucher value of ₹3000

2. Union Bank Rupay Combo Debit Cum Credit Card

These cards are made in collaboration with Rupay. The features and benefits of using this card are:

• Free airport lounge access for both domestic and international airports.
• Access to exclusive merchant offers.
• Cashback on utility bill payments.
• 24/7 concierge services.
• Daily cash withdrawal limit of ₹40,000 in case of debit card and up to 20% of the credit limit in case of credit card.
• Personal accidental insurance of ₹4,00,000 for debit cards and ₹20,00,000 for credit cards.

The charge required for using this card is mentioned below.

• There is a card issuance charge of ₹200/- + GST per card. There is no annual charge.

What Are the Pros and Cons of Using Debit Cum Credit Cards?

The advantages and disadvantages of using a debit cum credit card are mentioned below:

Pros

• The major benefit is the extra room. Squeezing the functionality of two cards into one is undoubtedly a blessing for people whose wallets are already overflowing with different kinds of cards. 
• There will be just one account statement for the card. It will be easier to keep track of costs for both the credit account and debit account because the card account statements will be combined.
• You can combine the reward points accumulated by the two accounts and gain dual benefits. 

Cons

• There might be unintentional errors when swiping or inserting the card. The two chips are positioned on either end; however, the merchant may unknowingly switch sides and use the wrong type of card. The solution to this issue is to give each card a separate password. 
• A customer who accidentally swipes a credit card instead of a debit card in a hurry and doesn’t catch it before the due date may have to pay a significant amount in interest. The same is true for cash withdrawals from ATMs. If the cardholder is irresponsible, they risk exceeding their credit limit and accruing significant interest.

Final Word

We use debit cards issued by the bank where we have our savings account and we select a credit card from a variety of issuers based on the features that best suit our lifestyles. However, with a debit-cum-credit card, the hassles of dealing with multiple banks and credit card companies get reduced. 

However, since the issuer bank of both the debit and credit cards are the same, your options for rewards get limited. Moreover, you have to be extra careful while using these cards as you will be paying extra if you withdraw cash from an ATM using the credit card in place of the debit card. You can also miss out on rewards and cashback if the cashier accidentally uses the wrong side of the card. 

Frequently Asked Questions