Difference Between Internet Banking and Debit Card

Internet Banking and Debit card are two different methods of conducting monetary transactions.

Internet Banking vs Debit Card

The difference between Internet banking and debit card is that while using Internet Banking, the customer is supposed to have an online account on his/her bank’s official website and the user ID and password is used for carrying out the transaction. On the other hand, in the case of the Debit Card, the customer has to enter his/her account number and PIN to carry out the transaction online.

Internet banking vs Debit card

Internet banking is carried out through the bank’s official website whereas to use a Debit Card, the account number has to be entered. The Debit Card is also used to withdraw cash from the ATM.

Internet Banking is a system that facilitates the online transfer of funds from an account to account through the customer’s net banking account.

Debit Card is a card(plastic) that is used during transactions to avoid the use of cash.


Comparison Table

Parameter of ComparisonInternet BankingDebit Card
Method of transactionThe user ID and password along with OTP has to be entered.The Account Number and PIN along with OTP has to be entered.
SafetyNo credentials saved with Merchant’s website, thus safe.Banking details are saved with the website, thus unsafe.
Authentication StepsOTP/IVR verification steps are taken.3D Secure Verification steps taken.
ProcessTransactions are routed through banks.Transactions are routed through card issuers like VISA and MasterCard.
Offers and Loyalty PointsIt does not provide cashback, offers, or loyalty points.Provides with up to 1-2% cashback, loyalty points, and multiple offers on Debit Card.


What is Internet Banking?

Internet banking is an arrangement that offers the ability to a customer to carry out monetary transactions from his/her banking account. Using the official website of the bank, the user can transfer funds to other accounts of the same bank or different bank, from his/her account.

The intermediate that facilitates this technology is the Internet. It acts as the medium.

To carry out internet banking, electronic devices are needed. Generally, a mobile phone, computer or laptop is used.

Internet banking is made available to customers through and by the banks. To avail of this facility, the customer must have an account in any of the banks.

When you pay through internet banking then as you select the payment through internet banking option you are directed to the bank’s login site. There you enter your id and password.

Then you confirm your payment by accepting the terms and you receive an OTP (one-time-password) after which the transaction is complete.

The benefits of net banking are:

  1. It doesn’t need you to enter the card number, CVV number, etc every time you make payment.
  2. Internet banking transactions are routed through the bank.
  3. Internet banking has another ladder of authentication provided by OTP on your mobile phone which makes transactions more secure.
  4. The cost of internet banking transactions to banks is cheaper than the cost of the debit card transaction.
  5. Internet banking also provides various other functions like the creation of RD, creation of FD, account statements, and the best functionality of paying off the bills.
Internet Banking

What is Debit Card?

It is a card for payment that subtracts money straight from the customer’s savings account to carry out a transaction. Debit cards eradicate the use of cash or cheques and cut the money directly from your savings.

Debit cards are distributed by processors such as Mastercard or Visa.

When you choose payment through debit card then in the service provider’s or merchant’s website you have to enter your debit card number which is a 16 digit or in some case 19 digit number which often gets saved on these websites. After saving these numbers then you are directed to the bank’s website where you have to just give your PIN of the card to complete the transactions.

In the case of Debit cards, the transaction has to be routed through an Acquiring Bank (not the same as the Debit card issuing bank, in most cases) that in turn communicates with an integrated gateway and Switch of that bank.

The transaction then, via a card Network (Mastercard/Visa, etc), get routed to the Debit card issuing bank, where it gets authorized after checking for funds in the cardholders account by the CBS of the (issuing) bank. The approved/declined message is sent back through the same route to the merchant and the customer.

Debit Card

Main Differences Between Internet Banking and Debit Card

  1. The main difference between Internet Banking and Debit Card is that In net banking the transaction happens in the customer’s bank domain. The customer is routed to his bank domain. While, A debit or credit card transaction happens in the acquirer domain, i.e. card number is captured by the payment processor/acquirer.
  2. In Internet Banking, no credentials are saved on the website where the transaction is being carried out whereas, while using the Debit Card, details of the account are saved with the merchant’s website.
  3. In Internet Banking, OTP(one-time-password) or IVR( interactive voice response) system.is set into place for authentication while a Debit Card uses the 3D secure System.
  4. The very basic difference of paying through Internet banking and a Debit card is that, you will get an 8 digit OTP for Net banking and 6 digit OTP for Debit card.
  5. It is not possible to withdraw cash through Internet Banking. Whereas, through Debit Card, the withdrawal of cash can be done by using an ATM and entering the PIN.
Difference Between Internet Banking and Debit Card


  1. http://acadjournal.com/2007/V20/part6/p2/
  2. https://www.sciencedirect.com/science/article/pii/S0148296316301904
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