It is a kind of plastic card that allows you electronic access to your current or savings account. You can use this card at ATMs shopping outlets, Petrol Depot, restaurants. In almost all the places, debit cards are accepted. Debit cards can be used for online banking as well.
Debit cards come with a logo of either Visa or Mastercard on it. The card is linked to your PB Banking Account. Any expenditure done with debit card gets directly deducted from your existing bank account.
How Debit Cards work
When you use your debit card for any transactions or purchases, the used amount gets deducted from your current or savings account. In case there is less or insufficient balance in your debit card account, the transaction remains incomplete. A debit card acts as a point-of-sale transaction to replace cash and checks. It works in the following way:
- The bank gives you a card linked to your bank account.
- The card can be used to purchase goods and services without using cash, credit card or check book.
- The bank receives information about your purchases electronically and deducts the amount spent with your debit card.
Features and Benefits of Debit Cards
The widespread usage of debit cards has actually reduced the use of cheques and other cash transactions. Listed below are some of the key features and benefits of debit cards:
- Debits cards linked to your savings or current accounts.
- The amount spent with your debit card get deducted directly from your account savings/current account.
- Debits card can be used for ATM withdrawals across the world.
- Safer and easier way of making purchases
- Internationally accepted at select Visa/MasterCard accepted merchants.
- You can track your transactions online.
- Get monthly statements for your purchases.
- Get all the privileges of a cashless society. You don’t have to carry cash anymore.
- Gain access to wide range of ATMs in Malaysia.
- These cards are accepted at millions of merchants worldwide.
- Customize your daily spending and ATM withdrawal limits.
- Cards are equipped with secure PIN and Chip technology.
- Get bonus, rewards and special discounts.
- Set up automatic payments for paying monthly utility bills.
- Use your card for online shopping and overseas purchase.
- Get SMS alerts on every transaction made with your card.
Types of Debit Cards in Malaysia
The local debit card network in Malaysia is operated by Malaysian Electronic Clearing Corporation. The debits cards issued Malaysia can be used as ATMs cash for cash withdrawals. Also, these cards card come with either Visa or MasterCard logo that enable you to use these cards across the world. Listed below are the two main categories of debit cards:
- Online/Virtual Debit Cards: They require electronic authorization for every transaction you make. The transaction is usually secured with PIN (personal identification number)
- Offline/Physical Debit Cards: They come with a logo of either Visa or Mastercard. They are used at point of sales just as we use credit cards. Offline or physical debit cards have maximum or daily limits of withdrawal.
Apart from the aforesaid primary types, there are some secondary variants of debit cards that include -
- Sharia Compliant Debit Card.
- Cash Back Debit Card.
- Debit cards with rewards Points.
Important Things to Keep in Mind While Applying for a Debit Card
It’s always good to consider the following points when you opt for a Debit Card in Malaysia:
- Check if there are any fees and charges applicable on your debit card or not. Certain bank may charge you card renewal fees, card replacement fees and annual fees etc.
- Know if there is any additional rewards or benefits offered by the card. If so, do you need to pay any fees to avail these benefits?
- Check if your debit card is a Sharia compliant or not. The Sharia compliant debit cards are free from unnecessary fees and charges.
- How many ATM withdrawals and POS withdrawals you can do.
- Know the limits of daily/monthly ATMS withdrawal and POS transactions limits.
- Know whether your debit card is accepted globally or not
- Is online shopping/transaction applicable on your card?
Top Bank Debit Cards in Malaysia 2016
Listed below are some of the top debit cards existing in Malaysia
- CIMB Debit MasterCard: The card is equipped with multi-level security features and accepted globally. The card can be used for cash withdrawal also.
- BSN Visa Debit Card: The card is universally accepted. You can use it for overseas as well as local cash withdrawals.
- Bank Islam Visa Debit Card-I: It is a Sharia compliant debit card. The card is issued to both Islamic and non-Islamic applicants. The international debit card and it can be used for ATM transactions.
- Alliance My eSaving Debit Card: The card is accepted all over the world. You can use the card for ATM withdrawals and making online and offline purchases.
- Citigold Debit & ATM Card: This is an international debit card and equipped with Embedded EMV-compliant Smart Chip’ feature to protect you against fraud. The card offers rewards. You earn reward points for every purchase you make.
- Hong Leong Junior Debit Card: The card is designed for juniors and can be used for paying for various products and services within any VISA or MEPs network across the world. It is linked to the Junior Savings Account and issued to parents/guardians. The card can be used for cash withdrawal, online and offline shopping.
- HSBC Visa Debit Card: This card is equipped with enhanced security measures, and can be used for ATM withdrawals and purchasing good and services.
- Maybank ASPIRE MasterCard Platinum Debit Card: The card can be used for ATM withdrawals at local as well overseas ATMs. No minimum income is required to apply for this debit card. The card is accepted globally.
- PB Visa/MasterCard Lifestyle Debit Card:This is a two-in-one debit card that contains features of both Visa and Master Cards. The card can be used for ATM withdrawals.
- RHB Premier Banking Platinum Debit Card: This is a premium debit card available RHB Premier Banking members only. The card enables you to enjoy airport lounges discounts and number of platinum privileges from VISA.
- UOB Debit MasterCard: It is Master debit card and accepted all over the world. The card can be used for ATM transactions as well as purchasing various goods and services.
FAQ's of Debit Cards in Malaysia
Can debit cards be used for overseas purchase?
Yes. Most of the debit cards can be used for overseas purchases.
Do I need to pay separate bills for purchases made with my debit card?
No. The amount spent gets directly deducted from your current/savings account.
How do I apply for a Debit Card?
You can apply for a debit by contacting a particular bank and opening a savings account.
What is the primary eligibility criteria to qualify for a debit card?
You need to have either a savings or current account with a bank. If you don’t have an existing account, you will have to open a savings account to avail a debit card.
Are minors eligible for debit cards?
Yes. Minors are also eligible for debit cards. Many bank offer Junior Debit Cards under the supervision of parents/guardians.
Can Debit Cards be used for ATM withdrawals?
Yes. Most of the Debit Cards enable you to make ATM withdrawals.
Are Malaysian debits accepted globally?
Yes. Almost all debit cards issued by Malaysian banks are accepted internationally.
What is the meaning of ATM cum Debit Card?
It means that the debit card can be used for ATM withdrawals as well as performing other activities like shopping, paying off restaurants bills etc.
News About Debit Card
Signature Based Debit Cards Still Good for ATMs
Credit cards based on signature verification will continue to work at ATM terminals for cash withdrawal, although they would not work at POS at merchant establishments.
Till November, 2016, 95% of the 7.5 million credit cards in use in Malaysia had been replaced and 60% of the 18 million signature based debit cards had been replaced with PIN-enabled cards.
The signature based cards, although already pin-enabled, need to be replaced in order to be be used with MyDebit. The MyDebit brand boasts of a contactless interface using an improved chip technology.
The co-badged credit cards which work via Mastercard or Visa brands have to be mandatorily replaced with those to work at POS with PIN function.
The Association of Banks in Malaysia (ABM) reasoned that the introduction of MyDebit was to encourage customers to use their credit and debit cards at merchant establishments instead of withdrawing cash to shop. It’s all part of a long-term plan to move towards digital transactions.
09th January 2017
No renewal fees will be charged on the ATM cards
Bank Negara Malaysia said that the cardholders will not be charged a renewal fee for use of cash withdrawals if it is not replaced with the new PIN-based cards. The central bank said that the ATM cards will be replaced for free. ATM cards in Malaysia double are debit cards and it allows cardholders to make purchases at the point-of-sale terminals.
Those who have not replaced their cards, they can continue to use it for withdrawals at the ATMs. The central bank said that all the banks in Malaysia are progressively replacing the signature-based cards with PIN based cards. The aim is to complete this exercise by 1st January, 2017.
23rd December 2016
Conversion to PIN-based card is slow in Malaysia
The debit card conversion to PIN-based card is slow when compared to credit card. 71% of the credit cards have been converted to new PIN-based cards. But, only 34% of debit cards have been converted. The whole conversion rate is at 45%. The Bank Negara Malaysia is urging the non-PIN-based cardholders to contact their bank and get the new PIN-based cards issued at the earliest. After 30th July, 2017, signature-based cards will not be accepted in Malaysia. Over RM1.1 billion has been committed to be invested to support the payment card infrastructure expansion and enhancement.
14th November 2016