Debit Cards

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Debit Cards

Debit Cards

(Last Updated On: August 2, 2017)

On this day and age, people prefer convenience for just about anything.  Nowadays, you don’t have to go to the shopping malls anymore to buy stuff.  You can just order them online and yeah, you don’t even have to be on a computer to make it happen.  You can do it even on your mobile phone!

The same goes with the way we buy things.  Gone are the days when you carried around a large amount of cash or maybe a check.  Today we have credit cards and debit cards that you simple swipe for you to make a successful purchase.

While credit cards let you borrow money that you do not have, debit cards functions more like an electronic check.  As long as you have funds available in your bank account, you can use your debit card without hiccups.  Your financial institution only needs to verify that there is sufficient funds available to approve the transaction.

Most debit cards can also be used to withdraw cash from an ATM though there are additional charges or fees when used this way.


Why Get One?

Again, it’s all about convenience.  Why bring cash when you can carry around a small plastic card or sign checks when you can just scan this card and close a transaction straight away?

Apart from the obvious, it’s also a good way to purchase items without interests just like what you get with credit cards and in case you ran out of cash, you can always use it to withdraw money from an ATM.  It’s not only practical, it’s also safer.


Costs Associated with Debit Cards

If there’s a downside or a disadvantage in using debit cards, it would have to be the fees or charges you incur by using it.  There are banks who charge you for entering a PIN (Personal Identification Number) to complete a transaction instead of signing.

You may also incur a fee if you overdraw or withdraw beyond the amount of funds you have available.  Think of it as something similar when you bounce a check.

Another way of getting charged is if you use the card to withdraw money from an ATM that is not operated by your financial institution.  Be sure to read the disclosures explaining the possible fees you may incur by using your debit card before you actually start using them.  Remember that ignorance of the law is not an excuse.



Just like with credit cards, debit cards also come with certain deals or “rewards” whose sole purpose is to entice people to go for a particular bank and the services it offers.  Whether these deals are good or not will all come down to research.  Don’t be instantly swayed with what looks like a really good deal because for all you know, there may be charges that may just pop up and surprise you.

Read the disclosures as mentioned.  Do your research.  Study each of the options and once you have confirmed that such perks will benefit you, go ahead and make a decision.


Debit Cards Can Be Credit Cards Too

It may come as a surprise but debit cards can be used as credit cards too.  There are actually two ways to use this card.  If you use it the normal way, which is as a debit card, funds are removed from your account almost immediately as soon as you enter your PIN.

Used as a credit card, payment is usually processed three days after as soon as you have signed just like you do for a normal credit card.  It may sound the same but the kind of transaction or how you use it makes a huge difference.

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