There are many pros and cons that go along with using a debit card. It is important to be aware of both the good and bad. Once you know the benefits and drawbacks, you can do what you can to avoid the bad and focus on the details that will better your financial situation.
Pros
1. Convenience. With a debit card you never have to use cash or check again. Instead, you can use it just like a credit card – except the money coming out of your checking account. Not only is it convenient to use a debit card at local stores, but the same holds true with online purchases.
2. Speed. Have you ever taken the time to write a check at a grocery store or retail outlet? This can take a couple minutes when you factor in the time it takes the cashier to “do their thing.†You can swipe your debit card and be on your way within a matter of minutes.
3. Easy to get cash. With a debit card you can visit any ATM and receive cash out of your checking account. Along with this, most stores can give you cash back after you make a purchase with your card.
Cons
1. Fees can sneak up on you. Just like credit cards, when you use a debit card there are fees that can come up from time to time. Some of the most common include: ATM fees, point of sale fees, and over limit fees.
2. No reward program. Although some banks are implementing these with debit card users, they are few and far between. A credit card reward program can eventually lead to everything from cash back to free plane tickets and much more. With a debit card you are simply taking money out of your checking account, with nothing coming to you in return.
3. Difficulties resolving disputed charges. When you use a debit card, as opposed to a credit card, resolving disputed charges can be a hassle. The reason for this is simple: the money spent comes out of your account almost instantly. This makes it hard to dispute the charge if the item is defective or never delivered.
With millions upon millions of people using debit cards it goes without saying that the pros outweigh the cons. As a user, you want to be 100 percent aware of the benefits of your debit card. At the same time, make sure you know the drawbacks so you can hedge against them.
With this information you should find it easier to take full advantage of your debit card, while avoiding compromising situations.
Related articles
- Credit card processing and debit cards (creditcardprocessing.net)
- Baby boomer parents and college students need to be aware of high fees for new campus debit cards (seattlepi.com)
- The Difference Between a Credit Card and Debit Card (brighthub.com)
