InvestorQ : What are credit-cum-debit cards?
Ishita Jain made post

What are credit-cum-debit cards?

Answer
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nishi Shah answered.
1 year ago


As the name suggests credit-cum-debit cards are plastic cards that provide services of credit as well as debit cards.

IndusInd Bank and Union Bank of India have come out with these innovative plastic cards. In October 2018, IndusInd Bank launched its card called ‘Duo’ and in November 2018, Union Bank of India launched its card called ‘Combo’.

Visa has collaborated with IndusInd bank to launch Duo card and Rupay has collaborated with Union Bank of India to launch the Combo card.

These cards look similar to the regular credit cards or debit cards issued by banks, but they have two chips vis-à-vis the regular cards that have one chip only. The two chips are visible on the front of the card and one chip functions as a debit card (this chip is linked to your savings bank account) while the other chip functions like a credit card.

These two chips are placed opposite each other on the card. Other than these chips, there are two magnetic stripes on the back of the card and based on which mode of transaction (debit or credit) you want to conduct, yo need to present that particular side at point of sale (POS) system.