Difference Between Internet Banking and Debit Card

Edited by Diffzy | Updated on: April 30, 2023


Difference Between Internet Banking and Debit Card

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Banking – a platform or a company type that will involve taking up the money from the people in many forms such as deposits and will lend it out as loans to make beneficial profits. The banking organizations not only keeps the money protected but also assist them in meeting their financial needs. These institutions pay savers money on their deposits while charging borrowers a greater rate of interest.

The difference between these two interest rates is the bank profit. Banks also provide lockers, ATM services, online fund transfers, check payments, foreign currency exchange, and the issue of debit/credit cards, among other services. Savings accounts, current accounts, fixed deposit accounts, and recurring deposit accounts are only some of the accounts that banks accept public deposits in.

Similarly, these institutions offer money to the general public in the form of overdrafts, personal loans, commercial loans, and mortgaged loans. Banking institutions play an important part in a country's economic development because they maintain the liquidity of cash by allowing people to move money around.

Economic stability requires the banking industry to function properly. They are the ones who contribute to the prevention of depression and inflation. During a recession, banks use a low-cost money policy to boost the economy's cash flow. When there is inflation, on the other hand, it implements a strict money policy to restrain the flow of money. It raises borrowing rates to keep people's spending in check during periods of high inflation.

In our rushed lives, every day is a race against time, so we look for ways to save time wherever we can. Online banking has rendered bank visits obsolete in terms of day-to-day errands. The following is a list of the advantages of online banking: Internet banking is a very safe platform because it is one of the most widely used banking services. Banks frequently employ encryption devices to ensure that all client data is safeguarded and no security breaches occur. In the end, it safeguards you against online fraud and account theft.

Even if it's the last day of the month and you're about to be fined a penalty, you can count on internet banking.

Online purchases can be made from the convenience of your own home at any time of day. Not only that, rather than having to be physically present for a huge number of transactions, you can transfer funds safely and easily at any time.

We've all migrated to debit and credit cards to avoid making cashless purchases. Using a debit card has various advantages, but using a credit card has its own set of perks. Let's take a look at some of the advantages of having a debit card and why you should have one.

Debit cards are the sole way to get money out of your account. You can't spend money you don't have, unlike with credit cards. Some account users, on the other hand, may be eligible for an overdraft, which allows you to withdraw a specific amount even if your bank account balance is zero. Because they can't spend more than their account balance, debit card users will stick to a monthly budget.

When you use a credit card to make a purchase, you must pay the full amount plus interest each month. When you use a debit card, you will not be charged interest because the money you spend is not borrowed. As a result, if you don't want to spend more money on interest each month, you must direct it elsewhere.

Internet Banking vs. Debit Card

The key distinction between Internet banking and debit cards is that with Internet banking, the consumer must have an online account with his or her bank's official website, and the user ID and password must be used to complete the transaction. In the case of a Debit Card, however, the consumer must provide his or her account number and PIN to complete the transaction online.

Internet banking is done through the bank's official website, but using a Debit Card requires entering the account number. The Debit Card can also be used to make ATM withdrawals.

Internet banking is a method that allows customers to move money from one account to another using their net banking account.

A debit card is a plastic card that is used to avoid using cash during transactions.

Another member of the Card family is the Debit Card. You don't need to pay cash if you have a Debit Card, just like you don't need to pay cash if you have a Credit Card. Simply swipe your credit card and pay your debts. What sets it apart from a credit card is that the value of an item purchased with a debit card is immediately debited from your bank account. The cash is debited from your account every month with a Credit Card.

When a person creates a bank account, the bank issues a debit card. So, if you create a bank account, you will very certainly receive a debit card.

Simply put, a Debit Card says, "Pay first, buy later," but a Credit Card says, "Buy first, pay later."

Net Banking is not the same as using a credit card. Net banking is a type of online banking that allows you to conduct transactions over the internet. This is a highly secure web gateway that immediately connects the user to his bank account. The user can connect to his net banking account and make online payments using his net banking User ID and Password.

Every bank provides its customers with a net banking service. Whether it's BOB Net Banking or PNB Net Banking, there's something for everyone.

Difference Between Internet Banking and Debit Card in Tabular form

Specifications Internet Banking Debit Card
Method of transaction The user ID, password, and OTP must all be entered. The Account Number, PIN, and OTP must all be entered.
Steps Steps for OTP/IVR verification are taken. Steps for 3D Secure Verification have been completed.
Safety There are no credentials saved on the Merchant's website, therefore you're safe. Banking information is retained on the internet, making it insecure.
Process Banks are used to route transactions. Card issuers such as VISA and MasterCard handle transactions.
Offer and loyalty There is no cashback, no incentives, and no loyalty points. On Debit Card, it offers up to 2% cashback, loyalty points, and multiple deals.

What is Internet Banking? 

Following demonetization in 2016, digital banking has grown at a faster rate. The bulk of Indian banks have developed their internet banking and mobile banking websites to provide users with online access to virtually all banking products. Internet banking has grown in popularity as a secure and easy way to conduct business. Let's have a look at how online banking functions.

Internet banking (sometimes called net banking or online banking) is an electronic payment system that allows customers of a bank or financial institution to undertake financial and non-financial transactions through the internet.

Anyone with an active bank account or who works for a financial institution who has registered for online banking at the bank can use it. When a customer signs up for online banking, he or she avoids having to go to the bank every time he or she wants a financial service. It's not only convenient, but it's also a secure method of getting to the bank.

Net banking portals are protected by user/customer IDs and passwords.

Listed below are a few of the benefits of internet banking:

Both Financial and non-financial banking services are available.

  • You can check your bank balance at any moment.
  • Pay bills and move money between accounts.
  • Keep a watch on your mortgages, loans, and savings accounts linked to your bank.
  • Keep a watch on your loans, and savings accounts linked to your bank.
  • Banking in a secure and safe environment
  • A one-of-a-kind ID and password protect it.
  • Customers can request a chequebook to be mailed to them.
  • Purchase general insurance.
  • You can set up or cancel automated recurring payments and standing orders.
  • Keep an eye on the investments in your bank account.

The following are some of the Internet Banking advantages and perks that are available to all users:

  • Unlike traditional banking hours, Internet banking is available around the clock, seven days a week. It is accessible throughout the year, 24 hours a day, seven days a week. The bulk of internet services aren't restricted by a time limit. Users may check their bank balances and account statements, as well as make financial transactions, in a matter of seconds.
  • The ease with which financial transactions can be initiated: Internet banking is frequently used for fund transfers and bill payments due to its convenience. Users who have enrolled have access to virtually all financial services without having to visit a bank or stand in line. Financial transactions like paying bills and transferring funds between accounts can be accomplished at any time that is convenient for the consumer.
  • Acknowledgment Slips: After transactions that have a high chance of being misplaced, the bank provides acknowledgment slips. However, with internet banking, it is quite easy to keep track of all of the transactions that the customer has initiated. Online transactions and fund transfers are organized in the 'Transaction History' section, together with other information like the payee's name, bank account number, the amount paid, payment date and time, and remarks.
  • Users of online banking can transfer funds between accounts swiftly and securely, especially if the accounts are held by the same bank. Money can be sent by NEFT, RTGS, depending on the user's option. Payments for bills, EMIs, loans, and taxes are all straightforward. A password and a unique User-ID are also used to secure both the transactions and the account.
  • Transactions that are not financial: Non-financial services such as balance checks, account statement checks, and applications for chequebook issuance are available to online banking customers in addition to funding transfers.

What is Debit Card? 

While using a debit card, money is taken from the user's checking account right away. They're also known as "check cards" or "bank cards," and they can be used to buy goods and services as well as get cash from an automated teller machine or a merchant that will let you add to an existing purchase.

Debit cards reduce the need to carry cash or actual checks while making purchases, and they can also be made to used to withdraw money from ATMs.

Debit card purchases are frequently conducted with or without a personal identification number (PIN).

You may be charged an ATM transaction fee if you use your debit card to withdraw money from an ATM that isn't affiliated with the bank that issued your card.

A debit card is a rectangular piece of plastic that resembles a credit card in appearance. It is linked to the user's checking account with a bank or credit union. The amount of money that can be spent is proportionate to the amount of money in the account (the number of funds in the account).

In some ways, debit cards are a cross between ATM cards and credit cards. They can be used to obtain cash from a bank's automated teller machine or to make purchases, as in the latter scenario. Many banking institutions are switching from single-purpose ATM cards to debit cards provided by multinational card-payment processors such as Visa or MasterCard. These debit cards come with your checking account.

Main Differences Between Internet Banking and Debit Card

  • The primary distinction between Internet Banking and Debit Cards is that in net banking, the transaction takes place within the customer's bank domain. 
  • The customer is directed to the website of his bank. A debit or credit card transaction takes place in the acquirer domain, which means the payment processor/acquirer captures the card number.
  • When utilizing Internet Banking, no credentials are stored on the website where the transaction is completed, whereas when using a Debit Card, account information is stored on the merchant's website.
  • For authentication in Internet Banking, an OTP (one-time-password) or IVR (interactive voice response) method is used, whereas a Debit Card employs the 3D secure system.
  • The primary difference between paying using an Internet banking account and a debit card is that you will receive an 8-digit OTP for Internet banking and a 6-digit OTP for a debit card.
  • Cash withdrawals are not possible with Internet Banking. Whereas, with a Debit Card, cash can be withdrawn by using an ATM and entering the PIN.


Both Internet Banking and Debit Cards are useful tools for doing transactions, but each has its own set of characteristics. When it comes to online transactions, Internet Banking is a safer option than using a debit card. Internet Banking is ineffective for doing offline transactions, as it does not allow for the use or withdrawal of cash.

A debit card can be used to make physical payments and cash withdrawals. A Debit card functions in the Acquirer Domain, whereas Internet Banking runs in the Bank domain.



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"Difference Between Internet Banking and Debit Card." Diffzy.com, 2024. Fri. 19 Jul. 2024. <https://www.diffzy.com/article/difference-between-internet-banking-and-debit-card-251>.

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