Debit Cards

Debit cards are issued by banks and, in most cases, look and spend exactly like a credit card. The only difference is that the debit card does not advance you any credit. In fact, using a debit card is much like writing a check without the paper. Any amount you spend is deducted directly from your checking account virtually immediately, depending on how the transaction is actually processed. There is no bill to pay at the end of the month, no accumulating interest charges and no membership fees.

It simply seems that in the past two years the rules of the game of trade in the US have changed greatly. Even with the government attempts, the access to money has been considerably cut down. The buyers decided in huge numbers, possibly by necessity or experience, to cover back their personal credit card debt whenever possible. In fact, it is a serious paradox to see folks pay back a greater portion of their financial debt in difficult times when they have been accumulating credit card debt in precisely what have been perceived happy times for the economy.

With the growing rate of savings across the nation, the use of standard bank debit cards has grown tremendously. Banks have followed suit and commenced providing bank debit cards with a big variety of rewards to attract the use of their debit cards.

If you are uncertain whether you need to get an ATM card, or obtain charge cards, then we'll quickly list the advantages and downsides of one as opposed to the other.

Top debit card benefits...

First and primarily, debit cards inspire conscious spending, and inspire keeping the pulse on the contents of your bank checking account. Quite on the contrary, charge cards motivate the attitude that your line of credit is "your dollars".

Debit cards are easier to get than the charge cards. There are usually no credit checks, and when you have a bank account in good standing, you can get additional debit cards without any further ado.

Debit card transaction fees for you usually are 0, but when there are, they must be clearly mentioned in the debit card application materials.

Versatility: You can pick and choose whether or not you would like to route the payment through the Visa or Mastercard network (safer) or whether you want to utilize a Pin number purchase. Lots of people feel more secure using a Pin number.

Most debit cards have no annual fee, but you will find exclusions. Some cash back debit cards carry a $20-$30 annual charge.

Universally accepted: Debit cards carrying Visa or MasterCard logo tend to be accepted worldwide at ATMs with the Visa or MasterCard logo. As a side note, there are more Visa ATMs throughout the world than MasterCard ATMs.

Negatives associated with debit cards

Payments for buys might be rejected as a result of not enough funds

Alternatively, a payment might move through but the checking account might go into red, initiating interest rates on over-charged quantity, and over-limit charges.

In scenario of a fraudulent use of a debit card, most banks will recognize the 100% protection.

Nevertheless, during the time when your case is being researched, you will end up lacking the funds that have been fraudulently withdrawn from your checking account. The research might occupy over a week.

As you can see you will find significant benefits of debit cards, and the disadvantages might be managed if you are paying additional attention to your bank account status on a regular basis...

Mark Moncher is a senior sales and business development executive with a strong track record of success both from an individual as well as team focus an experience in C level sales and negotiation leading to successful partnerships for both the customer as well as the client. His consistently high leadership scores year after year drive a winning attitude across the organization.

Read more articles click here