Your debit card is your gateway to financial transactions, offering convenience and security.
However, there are times when your existing debit card limit might not suffice for your needs.
Also, there are instances when you have sufficient funds in your checking account, but the transaction is denied due to a debit card limit.
In this blog, we'll explore the importance of debit card spending limits and discuss the various types of debit card spending limits that exist in India.
What is the Importance of Debit Card Spending Limits?
Understanding the significance of debit card spending limits is essential, as they play a crucial role in your day-to-day finances.
These are the reasons why knowing your debit card spending limit is essential.
1. Preventing Fraudulent Transactions
Debit card spending limits act as a security measure, limiting the damage in case of card theft or unauthorized use.
2. Sticking to a Budget
Debit card limits help you maintain financial discipline by restricting excessive spending.
3. Planning Prior Expenses
Limits encourage better financial planning and savings by curbing impulsive purchases.
4. Preventing Transaction Failures
Debit card limits ensure that your transactions are processed smoothly without exceeding available funds.
5. Avoiding Hidden Charges
Limits can safeguard you from unexpected overdraft fees or penalty charges.
What Are the Different Types of Debit Card Limits in India?
The Indian banking system typically imposes various types of debit card limits, including the following.
1. Daily ATM Withdrawal Limits
The maximum amount in cash you can withdraw from ATMs in a day by using your debit card.
Beyond this number of free cash withdrawals, you will be charged a specific fee for every withdrawal from an ATM.
2. Online Transaction Limits
Limits on the amount you can spend on online purchases or transactions.
It specifies the maximum amount you can spend online using your debit card.
3. Merchant Transaction Limits
Limits set by individual merchants for card payments.
This is the debit card payment limit for offline purchases, and this one is applicable when you swipe your debit card at merchant PoS terminals to pay for a transaction.
Amounts exceeding this limit will be instantly denied.
4. Daily Debit Card Limits
The maximum amount you can spend using your debit card per day.
This varies with cards and account types.
For example, a premium savings account usually offers a higher limit.
When transactions exceed this limit, they are usually declined. This could happen even if your account has sufficient funds.
Is a Temporary Debit Card Limit Increase Possible?
Yes, many banks in India offer the flexibility of temporary debit card limit increases to accommodate specific needs, such as higher spending during travel or for a significant purchase.
How to Increase Debit Card Limit - Detailed Steps
Here's a step-by-step guide on how to increase your debit card limit.
1. Contact Your Bank:
Reach out to your bank through their customer service helpline.
2. Specify Your Request:
Clearly state the type of limit increase you require, such as ATM withdrawal, online transaction, or merchant transaction limit.
3. Provide Reasoning:
Explain the reason for the debit card limit increase.
Whether it's for travel, a one-time purchase, or any other specific purpose, be transparent.
If you are wishing for a permanent debit card limit increase, then you have to specify the same.
The bank might need to change your account linked to your debit card or even change the type of debit card you are using.
4. Verification Process:
The bank may ask for verification, such as income documents or your account history.
5. Await Confirmation:
After reviewing your request and documents, the bank will confirm the temporary or permanent limit increase.
6. Monitor Your Spending:
Ensure responsible usage within the increased limit to avoid financial strain.
Alternative Process of Increasing Debit Card Limit
Many people ask - how to increase SBI debit card limit or how to increase debit card limit HDFC Bank.
For some of these banks, you can opt for an easy alternative.
Go to the bank’s app that you have installed on your smartphone.
Go to the debit card section in your bank app.
Now check the existing debit card limit.
Check if there is any option for a ‘dynamic’ debit card limit, which means you can set and reset your debit card limit according to your wish.
If there is a ‘dynamic debit card limit’ option, reset your debit card limit to meet your financial needs.
However, if there is no option for a flexible debit card limit, you can apply for a debit card limit increase in your bank app.
Your bank officials will review your account history and debit card usage and contact you about the decision to increase your debit card limits.
