Debit Card
Candlefocus EditorAs a direct payment card, it eliminates the need for a consumer to carry large amounts of cash and provides an alternative to using checks. With debit cards, money can be deducted from the consumer’s bank account for purchases. The card is linked to the consumer’s account and should the merchant be using fraud detection software, is at less risk of having fraudulent charges made against the consumer's account.
Most debit cards come with daily purchase limits, meaning it may not always be possible to make large purchases with a debit card. Also, merchants will usually charge a fee to accept debit card payments as they will be charged a processing fee by the bank/card issuer.
The consumer may be charged an ATM transaction fee each time they use the card to withdraw cash from an ATM that’s not affiliated with the bank that issued their card. Using the card abroad may also result in a foreign transaction fee.
In addition, some debit cards offer reward programs, much like credit card reward programs. Popular rewarding programs provide users with 1% back on all purchases made with their debit card. This can be redeemed for cash-back, merchandise, or airline miles.
Debit cards are the perfect alternative to carrying around cash. They provide an extra layer of protection against fraud and can be used to make secure payments anywhere, anytime. With the increasing popularity, these cards are becoming a must-have item in everyone’s wallet.