Plastic money is possibly the best way to pay for your purchases, especially if you're a prudent user. Credit/ debit cards help you dispense with wads of cash, while reward points add to their attraction.
What detracts from their appeal, however, is the increasing incidence of fraud, which makes people wary. To prevent this from being a deterrent, here are two little- known alternatives, which are as convenient and safer than the regular cards.
VIRTUAL DEBIT CARD
As the name suggests, this is a virtual card without any physical form and is aimed at the e- shopper.
It is generated online and is for one- time usage. Each time you buy a product, you'll have to generate a new card, which makes the transaction safe as the card details can be used only once. Also, virtual cards are not linked to your bank account, which protects you from identity theft.
While most major banks issue such cards for free, you need to have a Net banking account and a physical credit or debit card. Some cards, such as the HDFC NetSafe Card, are to be used within 24 hours, while others, like the Axis Bank eShop Card and Kotak Mahindra Bank's Gold Netc@ rd, can be used for up to 48 hours.
ou can apply for a virtual card by logging in to your bank's Website and filling in basic, personal information and details of your primary card. You will be assigned a unique user ID and password. When you log in again, you will be able to access your virtual card and set the cash limit.
This is restricted to the amount on your primary card. There is also a plug- in that can be downloaded and pops up when you make an online purchase. The transaction will reflect in the primary card's account statement. However, you will need to ensure that the exact amount you need is loaded as you cannot add money or redeem unused funds.
GIFT CARD
If you don't have a bank account, but need to use a debit card for a short period or want to present money to somebody, a gift card will come in handy.
These are prepaid cards that can be bought at major banks and are available in denominations ranging from 500- 50,000. These include the ICICI Bank Gift Card, Kotak Mahindra Bank's Best Compliments Card and Central Bank of India's MasterCard Gift Card. Some banks charge an issuance fee of up to one per cent of the amount being loaded.
Most gift cards come with an ATM and telebanking PIN, which enable you to check the balance and access transaction history at the bank's ATM or through customer care. However, these cannot be used to withdraw cash. Others can be linked to your mobile phone to help you get alerts.