Debit cards allow bank customers to withdraw money, to spend and credit card helps you to borrow money from the bank up to their specific limit to withdraw or purchase. If you’re like many people, you pull out your stalwart piece of plastic: either your bank-affiliated debit card or your rewards credit card. There was a time that credit having much more benefits over the debit card that are:
- Offer rewards on purchases you’re already making.
- Provide additional benefits, like extended warranties on electronics
- Give a “free” month-long loan.
But now debit card also has more benefits over credit card and cash.
Helps in protecting your identity:
Anyone can pocket cash from your wallet, but it’s much more challenging to steal money from a debit card. The thief would have to comprehend your pin, and if you convey your card ignoring promptly, the bank will cancel it so nobody can use the card. Using your debit card is just as safe as using a credit card. Plus, when you use a debit card, you’re using your own hard-earned money.
Reduce cash risk:
You don’t have to take around cash if you regularly use a debit card. If you do need notes and, you can always stop by an ATM and take out nevertheless much you need or get cash back when you buy at most shops. As you all are aware of Covid19 so you can use it reduces the risk of spreading the virus via exchanging cash and, you can make payment by debit card anywhere.
Provide reward points:
Several online and retail outlets offer cashback offers for every purchase made on the debit card. The points can be redeemed at any time to either purchase products from an online catalog of the bank or to earn shopping vouchers from various brands. You can earn points for dollars spent and redeem your points for travel, shopping, or gift cards.
Negligible interest or service charge:
When you pay with a debit card, you avoid expensive interest charges that end up to a great extent and increasing the price of your original item. Most banks have no annual fees, although sometimes and the little amount deducted as a service or maintenance charge. The charges may vary from bank to bank
Act as an Emergency fund:
Debit Cards can give you cash. They double up as ATM cards and allow you to withdraw money from an ATM. Therefore, working as an emergency fund for you. In addition to the ATM use, a majority of stores offer cash back options at the checkout. You can shop conveniently and reasonably using your Debit Card.
You can access online or offline:
Acquisitions can be made using a chip-enabled terminal or by robbing the card rather than replenishing out a paper check. The faster and in some cases remittance on the spot linked to debit cards makes it clear how much money you have left. Debit cards work well with online and mobile banking as well as budget management apps and websites because you can see your up-to-the-minute balance and account activity in black and white.
The amount directly deducts from your bank account, a place where the money already exists, you can do instantly. It is much quicker than having to wait for a credit transaction to go through or having to worry about having an adequate amount of cash in the account to cover your expenses. Debit Cards make transactions fast, easy, and convenient to use. Once you open a bank account, most institutions will issue you a debit card upon request.
Don’t fall into the trap of using a credit card as a safety precaution. It could lead to more spending and leads to more debt. A debit card is a useful tool for many of the reasons stated above. Just remember to spend responsibly. Debit cards are the happy medium between cash and credit cards – you get the convenience of carrying a card without the risk of overspending. If you’ve never used a debit card before, or are thinking about trying them out, here are our top seven reasons you should give it a try.