SimonStapleton.com

4 Interesting facts about debit cards

Estimated reading time: 2 mins

Debit cards have overtaken cash as the most popular way to pay for commodities. These cards allow the cost of goods/services to be deducted directly from your checking account. They can also be used at ATMs to withdraw cash. Most institutions will offer you a debit card once you open an account with them, so they are easy to obtain. Debits cards are convenient, safe to carry around and readily accepted in most financial institutions globally.

The most attractive feature of a debit card is that it facilitates cashless transactions and also limits your spending. You cannot exceed the set limit because it would be impossible to spend more than you have in your bank account. The advantage is that you will not accumulate new debts unlike credit cards that may make you spend more than you have and regret later on.

Here are some interesting facts about debit cards:

 

  • Types of debit cards

 

There are two types of debit cards which include traditional and deferred debit cards. The former is issued through the bank and requires an input of your PIN for a transaction to be completed. It deducts the purchase price almost immediately after making the purchase. They are mostly used at gas stations, supermarkets and stores. On the other hand, to use a deferred debit card you sign for the purchase or use a PIN and unlike the traditional debit card, the purchase price when using a deferred debit card is deducted from your checking account two to three days after. They are also issued through a bank but has a logo of a big credit card company.

 

  • PIN gives the best protection

 

Most consumer experts do not advocate for pinless debit payments since they do not offer as much protection as the PIN based ones, which is the entire purpose of a PIN. With a PIN based debit card, you cannot make a transaction without the PIN number which makes it impossible for anyone else to use your debit card. Anyone could pick up a signature based card and sign your name to it and make all sorts of transactions which could limit the number of places you use it.

 

  • Return policies can vary

 

Many people like to treat debit cards purchases as they would with cash or check which is not right. When using a credit card, you have the choice to withhold the payment in case you are unsatisfied with the quality of the item but this law does not apply to debit card purchases. Debit cards are the best way to pay for items such as gas, groceries that is everyday items but then it would not make much sense to use them expensive services or when ordering merchandise.

 

  • Fees

 

According to research, one in every five banks will add a charge on each transaction done through entering a PIN. Other fees include ATM use and also holding the debit card itself. On average, 15% of debit card holders are subjected to debit transaction fees. It is therefore important that you find out what kind of debit card your bank offers and also enquire about the fees before you pick one.

 

About the author /


Simon is a creative and passionate business leader dedicated to having fun in the pursuit of high performance and personal development. He is co-founder of Applied Change, a Business Change consultancy based in the UK. Simon is also an Ambassador for Gloucestershire business. Simon is an Associate Member of the Chartered Institute of Professional Development.

Post your comments

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Affiliate Promotion

simonstapleton.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. Amazon, the Amazon logo, AmazonSupply, and the AmazonSupply logo are trademarks of Amazon.com, Inc. or its affiliates.

Polls

When answering Employee surveys, do you always answer completely honestly?

View Results

Loading ... Loading ...
My latest book: ACE Your Performance Appraisal$4.99 on
How Am I Doing?

Did this discussion solve your problem?

Then please rate this post or leave a comment.