Debit cards, or as they are often called ATM cards, are one of the most important facilities offered by banks and financial institutions. Now, a debit card has a host of advantages, the primary one being streamlining financial transactions and reducing the risk of carrying cash. However, to keep enjoying the facilities of this payment card you need to pay the ATM card AMC.
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What is an ATM card AMC and Why is it Levied?
AMC full form is an annual maintenance charge. Banks levy ATM card AMC for the services and maintenance of the card. This is an annual charge that depends on the type of debit card you use. However, there are a few debit cards that do not have any maintenance charge.
- The Significance of Debit Card AMC
The idea of paying AMC on time is to keep your debit card functional. That means, by paying this charge, you will get services like customer support, technological maintenance, card printing, etc. This debit ATM card AMC allows you to do transactions and online purchases smoothly without any hassle.
- How are Debit Card Annual Charges Calculated?
Debit card annual charges vary depending on the bank you are availing the services. Some banks have fixed charges, while others levy different types of AMCs as per the type of debit card, its facilities, etc.
Therefore, you must get a proper consultation regarding ATM card AMC from your bank to avoid future hassle. Here are a few instances of AMC from popular banks:
- SBI: ₹350 + taxes
- HDFC Bank: ₹750 + taxes
- Axis Bank: ₹200 + taxes
- Federal Bank: ₹750 for contactless cards, ₹500 for other cards
- Indian Bank: ₹150 + taxes
What are the Repercussions of Not Paying AMC?
ATM pending AMC will come as a reminder to you from your bank. Upon failing to provide the pending annual maintenance charges, you may face the following repercussions:
- Service Disruption
You may face debit card service disruptions if you fail to provide AMCs at the right time. The service provider will send you a reminder before stopping the service.
- Penalties and Late Fee
Banks may also charge late fees along with the original annual maintenance charge, which means you end up paying more than you should.
- Restricted Access and Card Deactivation
You may not get access to every service for the ATM card because you did not pay the annual maintenance charges. With restricted access, you may also face card deactivation.
Thus, it is essential to check the terms and conditions and debit card AMC before you apply for any.
How to Avoid ATM Card AMC?
Here are a few practical ways to avoid ATM card AMC:
- Choose AMC Free Card
The most effective way to avoid ATM card AMC is to choose a bank that offers payment cards without any annual maintenance charge. For example, some banks offer low to zero AMC for basic ATM cards, while others offer higher AMC for high-facility debit cards. Therefore, you need to research the services of different banks and choose the perfect one for you.
Read More: You can read more about different types of ATM cards before choosing one for you.
- Keep a Minimum Balance
Some banks have a policy of waiving the annual maintenance charge if you have the minimum balance in your account. You can check your bank’s terms and conditions regarding this.
- Choose Combo Account
A few banks offer combo accounts with benefits like no AMC debit cards and other financial benefits. You need to explore this feature if you want to skip paying ATM card AMC.
How to Pay ATM card AMC?
ATM card AMC generally gets auto-debited from your bank account as per different bank policies. However, if your bank does not auto-debit the charge, you can easily pay the amount via net banking, UPI and other payment cards.
Conclusion
Hope you have got a brief insight on ATM card AMC from this blog. Hence, as a responsible debit cardholder, you must maintain the guidelines regarding AMC properly and enjoy multiple facilities seamlessly. For inquiries, you can reach your bank’s customer support.
