Learn The Debit Card Benefits You Never Knew Existed

How do you pay your everyday bills? Many individuals value the convenience of cashless purchases. When you use a debit or credit card, you don’t have to worry about having enough cash or locating a pen to make a check.

However, these two types of plastic are different. While you may be familiar with credit card benefits such as points and cashback, you may need to be aware that debit cards can offer many of the same benefits. Continue reading to learn how to get the most out of your debit card.

1. Do not pay any fees or service charges.

In contrast to credit cards, which commonly include yearly fees, late payment penalties, high foreign transaction fees of up to 3%, and other pricey extras, debit cards typically have few or no fees. If you use your debit card carefully, you can avoid paying a fee entirely.

When you withdraw cash from an unaffiliated ATM, certain banks, for example, charge a few dollars (in addition to the ATM fee). However, if you plan, you can easily avoid “ATM costs.”

When you know, you’ll need cash, head to an in-network ATM or use a store’s easy “cash back” option when paying with your debit card. Because a debit card works like an electronic check, pulling funds from your checking account as you use it, you may be charged an overdraft fee if you use it when your account balance is low or negative.

This, however, is another cost that can be readily avoided. Several banks offer overdraft protection services ranging from lines of credit to card denial for insufficient money to prevent you from mistakenly overdrawing your account. You can check your balance online and through mobile banking from anywhere to ensure you have enough money before using your debit card.

2. Maintain fiscal responsibility.

Debit cards are called “check cards” to reflect their role as plastic checks. When you charge something to your credit card, you can pay it in the next month, and even then, your minimum payment may be less than the full sum.

Debit card purchases, on the other hand, are processed either immediately (if you select the debit option and provide your Identification Number – PIN) or after a few days (if you choose the “credit” option). With real-time payment, you are held accountable for spending no more than you have. Mak3. Faster payments indicate more excellent budgeting.ing impulsive purchases with a credit card is simpler because you may have the thing now and worry about paying for it later.