Online shopping has increased exponentially in the past couple of years. From electronics to daily groceries, consumers log on to the internet for the biggest to the smallest of purchases. This sudden burst of virtual shopping has led to the propping up of multiple payment methods. Businesses cannot only rely on credit cards or cash on delivery payments. Consumers want transparency and ease. In their bid to offer such comfort to the customers, banks and businesses provide easy EMIs on debit cards.
Now you may have heard of credit card EMI schemes where you can convert your purchases into digestible EMIs, using a credit card EMI calculator, which are added to your credit card bill every month. Debit card EMIs take a step forward in opening up buy now pay later options to consumers who are afraid of the pitfalls that credit cards pose. Here is all you need to know about Debit card EMIs and how you can choose this payment option on your next purchase.
How does a Debit Card EMI work?
Eligibility: If you have a savings or current account with any leading banks, you are eligible for a debit card EMI. This payment scheme is offered to you in collaboration with the e-commerce portal and your bank. To find out if you are eligible for an EMI, you can read about it on your bank’s website. Typically, most banks have a dedicated number where you send a text message, and in return, the bank informs you about your eligibility.
Choosing the Debit Card EMI option: Go to the e-commerce portal and select your favourite product. The product page will also let you know if you can pay using debit card EMIs for the particular product. You can choose your bank and choose a comfortable tenure between 3, 6, 9, and 12 months. Some portals even let you pay for over two years. The EMI calculator online available on the e-commerce portal will let you know the amount you must pay every month. Your bank may charge an interest or processing fee for availing of the EMI payment option.
If you are making a physical purchase from a store, you can ask the store if they offer a debit card EMI facility. They will run an EPOS test online to check if your bank offers this option and let you know accordingly.
Authorisation: Once chosen, you are directed to the final payment page. When you hit the ‘Pay Now’ button, you must enter your debit card details such as the card number, expiry date and CVV number. You are required to enter the OTP sent to your registered phone to authorise the payment. You can swipe your card on an EPOS online test machine to make a physical purchase and enter your PIN for authorisation. Once done, the bank registers your purchase and debits the EMI every month accordingly.
Points to Note:
- You do not need to maintain a required balance by the bank or the business to avail of this facility. You can calculate your EMIs using the EMI calculator online and keep the amount in your bank every month till it has been auto-debited by your bank.
- Your bank/e-commerce portal may or may not charge a processing fee for availing of this scheme. You must check with your providers before selecting the debit card EMI option.
- You can discontinue this scheme by prepaying the amount in full. Your bank may levy prepayment charges for the same.
Keep an eye out for the debit card EMI option when making your next purchase for ease of payment.
