A feature missing from the Bank/ FinTech value chain is Domestic Debit Card (DC) to Domestic Bank A/c (BA) transfer. With wide proliferation of debit cards, payment gateways and POS vendors all provide C2B payments through these channels. Debit card to Bank A/c transfer doesn't exist, which would instead be a C2C/ P2P provision (via regulated payment intermediaries).
There ought to be very valid reasons for the same such as the regulator disallowing it, security & fraud considerations, transaction fees & gateway charges, error handling & reversal mechanism, and so on.
Alternatives such as bank transfers provisions such as NEFT, RTGS, etc. and UPI mobile-apps based P2P transactions exist. Even for these modes all the issues mentioned above hold true yet the solutions were allowed to run and mature over time. So why not DC to BA?
If ever such a feature were to be rolled out by Banks/ FinTechs then all that customers would need is a single web page on the service provider/ Bank website to capture:
- Debit Card details (Card no, Validity, Name, etc.)
- Recipient Details (A/c No, IFSC, Name)
- Amount to Transfer
Next, the back-end gateway systems would:
- Verify the details, authenticate the transactions, perform due handshakes for processing, etc.
- If all ok, proceed to standard OTP based validation for the DC holder
- Finally, debit the sender's DC (linked Bank A/c) & credit the receiver's Bank A/c
That's about it!
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