Purchase debit card
When you open a checking account with some banks, they give you a debit card or a check card that gives you the added flexibility when you want to pay for your purchase without using cash. Many people use debit cards for all sorts of monthly purchases. Considered safer than cash, there is also the added benefit of not having a huge bill to pay at the end of the month.
Advantages of using debit cards for purchases:
- There is no check approval or identification required at stores. No waiting in long queues at the payment counter means you save time.
- The debit card holder can make all his purchases using the debit card at the various terminals or Point of Sale counters. There is no need to bother about carrying cash, a checkbook or even a travelers check for that matter.
- There are no interest charges that you must pay at the end of the month or even annually for using your debit card. This is because the money you are using to pay for these purchases is already yours and not a loan from your bank.
Disadvantages of using debit cards for purchases:
- You need to have enough funds in your checking account to take care for covering every purchase you make.
- There is less protection for you if you happen to find out that you have been cheated when you made your purchase. The money is already out of your account and nobody can get it back for you.
- There are certain places where you are not allowed the use of a debit card. Car rental companies prefer the use of a credit card over a debit card.
Risk with making purchases with debit card:
Many experts are of the opinion that it is quite okay to make small purchases with a debit card. For big time purchases, however, the use of a credit card is seen as more appropriate. This is because there is less chance of fraudulent purchases or receiving poor quality merchandise or not receiving merchandise at all when paying with a credit card. You can simply refuse to pay for such transactions if you have a bill that supports your claim. With a debit card, the money is already out of your account before you realize what went wrong. No bank will put back the money into your checking account once it is gone.
Be smart
Paying by the debit card for smaller expenses and purchases makes better sense. The stress and burden involved in carrying cash every time you go shopping is eliminated with the use of debit cards. Debit cards are also best when used for purchases at the local stores. For online purchases, however, the use of a credit card is highly recommended. It is important to remember that it is your own money that can go out of your account every time a debit card is used by you.
Overview
A debit card is usually given to a checking account holder to make it convenient for him to carry out small financial transactions without using actual cash or a check. It is important to use the debit card wisely for making any purchase.
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