Take Control Of Your Debit Card Daily Spending Limits

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The functionality of a debit card extends beyond making transactions. You can now use it to earn rewards, cashbacks and more, while tracking expenses. It is also critical to have a daily spending limit for a debit card. In fact, most debit cards come with default transaction limits; plus, there are some government directives on daily transactions on debit cards in India as well. 

In this article on daily spending limits for debit cards, we shall delve into the types of limits on debit card transactions, how they can impact your finances, and the right way to adjust them to benefit from all their features/offerings. 

Why are there limits on debit cards?

Commonly, debit card limits that come preset are designed to help users manage their spending and maintain financial security:

Prevent Fraud: Banks can reduce the risk of large-scale fraud by limiting the amount that can be withdrawn or spent daily.
Control Spending: Having daily limits automatically keeps you from overspending and managing your funds better.
Avoid Overdrafts: A fixed amount of money that can be accessed or spent in a day can reduce the chances of accidental overdrafts.

Types of limits on debit card daily spending

A debit card’s daily limits vary depending on your bank and debit card type. Below are some of the common types of limits:

Daily Withdrawal Limit: This is the maximum amount you can withdraw from ATMs in a single day.
Daily Transaction Limit: While spending at POS (whether offline or online), there is a limit set on the amount you can spend using your debit card in a day.
International Usage Limit: Typically, a bank restricts online transactions unless opted for to ensure fraud prevention.

Pros and cons of debit card daily limit

Before we discuss the ways to adjust your debit card limit for daily spending, it is worth considering the pros and cons of each type of limit so that you can make an informed adjustment.

Pros:

Keeps within budget by preventing overspending or accidental transactions
Reduces damage from unauthorized transactions or cyber scams
Tracking your spending habits by reminding of accessible funds at each transaction

Cons:

 Limits may not accommodate emergency expenses
Traveling and spending abroad can be restrictive

How to increase your debit card daily limit

Now, coming to the crux of this article, note that different cards and card providers have their own methods to increase your daily debit card limit. Still, below, we list the typical steps:

Contact your bank: To increase your debit card limit, you can simply ask a bank official in person. Some may even allow this via phone if you could provide proper ID proof.
Use online banking: Most banks let you adjust your debit card spending or withdrawal limits by yourself via your online bank account or the bank’s mobile app.
Provide necessary documentation: As changing your debit card limits can be financially sensitive, some banks may require you to provide identification proof or even additional information or documentation to process your request.

Applying for a debit card limit increase is not enough. You should review the new limits immediately to ensure that they meet your needs and confirm the changes with your bank.

Endnote

Overall, while a debit card's daily limit offers control and security of your funds, it also restricts your occasional needs. The trick is to find a balance by understanding your needs, habits, and plans to stay on top of your debit card spending limits. The 811 Debit Card by Kotak 811 offers a balanced approach to enjoying the limitless potential of a debit card while staying in control. 

FAQs 

1. Is there a daily limit on debit cards?

Yes, there are daily transaction limits on debit cards – on both withdrawal and spending – preset by your bank.

2. How do I check my debit card limit?

Depending upon your debit card provider, you can check your debit card limit via your bank’s online portal, mobile app, or by contacting your bank directly.

3. Can I change the spending limit on my debit card?

Yes, you can usually adjust your spending limit on debit cards by using the bank’s app or desktop portal. In some cases, may have to visit the bank branch. 

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.