Seven Important Advantages Of A Debit Card

2019/02/25

Debit card has become an important mode of payment for various expenses and purchase transactions. It can be used for conducting online transactions and for making payments at retail outlets or merchant shops. Debit card is generally issued by a bank where an account is maintained by the card holder.

Debit card can be used with a personal identification number for making transactions through ATM machines and with the CVV number (printed on back of the card) for conducting online transactions.

Seven Important Advantages of a Debit Card

Minimum Cash Holding

A debit card can be used just like cash. In case of cash, money is transferred immediately to the payee. In case of a debit card, money is immediately debited from the bank account of the card holder. Hence, the need to maintain too much amount of cash at home or to carry too much cash at a shopping outlet is reduced. Further, a debit card can be used to withdraw cash from ATM machines at any hour of the day.

Minimum Visits to Bank

Debit card can be used to perform various transactions at bank’s ATM machines which are located at various places. ATM machines can be used for performing banking transactions such as check deposit, cash withdrawal, balance inquiry, fund transfer, credit card payment and so on. By using debit card at ATM machines, card holder is not required to visit his/her bank to perform routine banking transactions.

No Maximum Limit

A debit card is linked to the bank account of the card holder which enables him/her to spend money without any maximum limit. Only thing that the card holder is required to ensure is that sufficient balance is available in his/her bank account at the time of performing a purchase transaction or making a payment via his/her debit card.

Online Usage

A debit card can be used for conducting online transactions. Individuals who don’t have credit cards can use their debit cards for making online payments. It is important to note that the process of using a debit card for making online transactions is similar to the process of using a credit card for making online transactions.

No Need to Remember Dates:

In case of a debit card, card holder is not required to remember various dates such as statement generation date, billing dates and due date as in the case of a credit card.

Minimum Financial Charges

A debit card holder cannot be made liable for payment of any interest or financial charges on account of any delay or nonpayment of any dues on the debit card. This is because money is immediately debited from card holder’s bank account. Some banks may even provide overdraft facility to their account holders up to a certain amount and for a certain period without levying any interest penalty.

Minimum Tracking

An individual can verify all the transactions performed with the debit card by using the internet banking facility provided by his/her bank. Further, a message is delivered on the registered mobile number of the card holder as soon as a transaction is performed with the debit card. This helps in ensuring the all the transactions have been properly recorded in the card holder’s bank account.

Photo Credit: Lunas2cents.com

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