Debit Card or UPI: Which Payment Method is Safer?

In today’s technologically advanced world, people prefer using digital payment options more than the traditional method of paying through cash. Whether you are a beginner with digital transactions or have been using cards and UPI for years, one of the main concerns that you can face while making online transactions is safety. With multiple options available in the digital space today, let’s see which one is the safest? 

What is UPI?

Developed by National Payments Corporation of India (NPCI), Unified Payments Interface (UPI) is a payment system that integrates multiple bank accounts into a single mobile app to transfer money from one bank account to another. It combines various banking features, enables smooth fund transfers, and supports merchant payments all in one place. It also allows “Peer to Peer” payment requests, which can be scheduled and paid at your convenience, anywhere and anytime. 

Paytm, being the pioneer of online payment, is one of the best, most user-friendly and safest UPI apps for online transactions. 

What are the Safety Features Associated with UPI?

As UPI payments continue to surge in India, ensuring the safety and security of transactions has become crucial. To enhance user security, the National Payments Corporation of India (NPCI) has introduced the UPI Safety Shield feature, designed to help users conduct transactions securely on UPI. Some of the features that make it the safest online payment method are:

Two-Factor Authentication

• Users need to enter their unique  UPI PIN (Personal Identification Number) to validate their transaction. This PIN should be kept confidential. 
• Avoid using easily guessable numbers for PIN. 

Biometric Authentication

Utilize features including fingerprint or facial recognition that reduces the risk of unauthorized transactions. 

Paytm UPI Fraud Protection Plan

• Paytm offers a unique insurance plan called ‘Paytm Payment Protect’ to protect users from falling into fraudulent activities such as phishing scams, remote screen mirroring etc during online transactions.
• Covers up to INR 10,000 per year against UPI frauds and scams
• Is affordable and easy to use.

Paytm Security Shield 

• Paytm offers an option to enable the security shield to protect users from digital fraud. 
• After enabling, Paytm Security Shield will be activated, and the user will be required to enter a passcode or provide a face ID or fingerprint to access the application

What is a Debit Card?

A debit card is a payment card that is linked directly to your bank account. These are useful in purchasing goods and services online or in-store and are also used to withdraw cash from ATMs. When you make transactions through a debit card, you can trace your expenses in real-time that further helps in navigating and keeping record of your recent payments. Being able to trace your spendings and report to your bank if there has been any unverified payment from your card, makes a debit card extremely safer and convenient than using cash.

What are the Safety Features Associated with Debit Cards?

Here are some of the safety features associated with debit cards that contribute in making it one of the safest online payment method:

EMV Chip and PIN Security

• Debit cards have an embedded microchip that encrypts transaction data, ensuring security during card transactions.
• You must enter a unique Personal Identification Number (PIN) that is confidential and must not be shared with anyone else.

Transaction Alerts

• Banks provide real-time transaction alerts via SMS or email to keep you informed of account activity
• Important tool in monitoring your account for any suspicious or unauthorized transactions, allowing you to take immediate action if needed.

Contactless Payment 

•  Uses near-field communication (NFC) technology to establish a secure connection between your card and the payment terminal. 
• Encryption protocols protect your payment details
• Since you use your card less physically, the risk of theft is reduced. 

CVV (Card Verification Value)

• 3-4 digit code located at the back of the debit card and is essential to complete online transactions.
• Should be kept private to safeguard the card from unauthorized use or fraud.

Lock/Unlock Card

• If customers misplace their card, they can temporarily lock it via their bank app using the ‘lock card’ option for added security. Once they find the card, they can simply unlock it using the same option.

Debit Card or UPI: Which Payment Method is Safer?

Things to Remember While Using Debit Cards and UPI

• Keep your Personal Identification Number (PIN) confidential. Avoid writing it down or sharing it with anyone.
• Keep your UPI PIN secure and do not share it with anyone. Change it immediately if you suspect it’s been compromised.
• Use secure and trusted networks for transactions.
• Keep debit card PINs and UPI PIN confidential.
• Enable multi-factor authentication (MFA) when possible.
• Regularly monitor your transaction history for any unknown payments. Report the case in case of finding any discrepancies. 
• Use trusted banking and UPI apps from official sources.
• Beware of phishing attempts through emails or messages.
• Keep contact information updated with your bank.
• Be cautious when sharing UPI IDs; verify recipients.
• Stay informed about security practices and fraud prevention.
• Report any suspicious activity to your bank and authorities.
• Change UPI PINs and passwords periodically for safety.

Thus, both methods are secure when used responsibly, and by staying vigilant, users can enjoy the convenience of these payment options while minimizing potential risks.