Debit cards are one of the most popular methods of payment in the world. In fact, there are more than 2.2 billion of them in use today! But despite their popularity, there are still many people who don’t understand how they work. In this blog post, we will discuss six crucial things that everyone should know about debit cards!
What is There to Know About Debit Cards?
These cards are linked directly to your bank account. This means that when you use your card to make a purchase, the money is immediately taken out of your account. There are no “floating” balances or interest charges with these cards – what you see is what you get. They can be used for both online and offline purchases. Whether you’re buying a new pair of shoes from your favorite online retailer or paying for your groceries at the local supermarket, you can use your debit card!
1. It is not as simple to steal or lose it
Most of such cards have built-in fraud protection features. This means that if your card is ever lost or stolen, you can report it to your bank and they will cancel the card and issue you a new one. Generally speaking, using a debit card will always carry a risk, just like carrying a lot of cash with you. However, if you ever make an unauthorized purchase with your debit, you can simply contact your bank and they will refund the money to you.
2. Want to avoid debt? No problem!
They are a great alternative to credit cards, especially if you’re trying to avoid debt. Since the money is taken out of your account immediately, you can never spend more than you have. This makes it much easier to stay within your budget and avoid getting into debt.
3. Helping you limit your spending
Using these cards is also a great way to limit your spending. Since the money is taken out of your account immediately, you can never spend more than you have. Many people view this as a debit card advantage than a disadvantage. This makes it much easier to stay within your budget and avoid getting into debt. Additionally, they can help you track your spending more closely. Most banks provide online banking services that allow you to see exactly where your money is going each month. This can be a great way to identify areas where you might be able to cut back on your spending.
4. You cannot use them everywhere
Granted, you can use them for both online and offline purchases. This makes them a very convenient way to pay for things since you don’t have to worry about carrying any cash around with you. Additionally, debit cards are accepted by millions of merchants worldwide, so you can use them wherever you go! However, there are still some places where debit cards are not accepted. For example, most rental car companies will only accept credit cards. Additionally, some hotels and resorts may require that you use a credit card for incidentals such as room service or laundry.
5. You will most likely have a monthly fee on the card
Most cards will have a monthly fee. This is a small charge that is assessed each month in order to keep the card active. The monthly fee is generally very low, and it is worth it to have the convenience and peace of mind that comes with having a card. The purpose of the monthly fee is to cover the costs associated with maintaining the card. This includes things like fraud protection, customer service, and online banking features.
6. The grace period
The grace period is an important feature of both debit and credit cards. It is the amount of time that you have to pay your bill in full before you start accruing interest. For debit cards, the grace period is generally about 25 days. This means that you have about 25 days from the date of your purchase to pay your bill in full without incurring any interest charges. For credit cards, the grace period is usually about 30 days. This means that you have about 30 days from the date of your purchase to pay your bill in full without incurring any interest charges.
Debit cards are a great way to pay for things, whether you’re online or offline. They have built-in fraud protection features and are accepted by millions of merchants worldwide. Additionally, they can help you stay within your budget and track your spending more closely. Most debit cards also come with a monthly fee, but the benefits usually outweigh the costs. The grace period is another important feature of debit cards that gives you some time to pay off your purchase without incurring any interest charges. So if you’re looking for a convenient and safe way to pay for things, a debit card might be the right choice for you!