Trends are changing with time. Things that most people could not even perceive a few years ago are now considered normal.
One trend that is taking over the entire world is the process of cashless transactions. As seen by the market trends, paper money would seem antiquity in the coming few years.
Cashless transactions refer to payments made through a debit/credit card. No one needs to go through the hassle of carrying a heavy wallet when you can swiftly whip out your card and pay.
Debit cards and credit cards are two cards that cater to different areas and kinds of transactions.
This article focuses on the advantages of a debit card, and it is much more convenient than a credit card.
Stay Interest-Free
The most prominent feature that sets a credit and debit card apart is the extra charges after using the card.
If an individual purchases a credit card, they are technically taking a loan from their bank, which is liable for interest if not repaid within a certain period.
On the other hand, a debit card deducts the amount directly from the individual’s account; the purchaser pays with their own money rather than taking credit from the bank. Paying with a debit card prevents any extra interest fees from racking up, which, let’s be fair, are not easy to repay.
Quick Accountability of Your Spending
Using a debit card sounds like a constant reminder to stay well within the limit of your account.
It is often hard for us to balance our expenditures, and we overspend on things that are not an immediate necessity. Making purchases using a debit card allows you to keep yourself in check as you’re aware and have constant reminders about the financial health of your account.
The fact that you can’t spend money you don’t have makes debit cards better than credit cards for all you impulsive buyers out there.
Service Charges? Never Heard of Them Before
It is now time to kiss any extra service charges goodbye.
Opting for debt will not charge you as it is usually provided to the client when they decide to open an account. Unlike credit cards, various banks have different policies regarding this, but most would not charge you a fee.
Some banks have a policy of charging their customers a 3-4% transaction fee for credit cards; using a debit card waives these fees.
Secure Your Finances
In contrast to paper money, you can permanently cancel your debit card if you lose it in any unfortunate scenario.
Your bank can cancel your debit card if you request it. This security can save you from facing a financial setback.
On the other hand, losing paper money would incur a huge loss that would be irreparable.
For additional security, some banks also have the option to choose a code for online shopping so that only you can have access to your account.
No Need for Checks
Writing checks is a time-consuming task, followed by a delayed reflection of the payment in your account.
It is a story of the olden days now, as debit cards have replaced checks with a far better and swift mode of payment. Paying with a debit card would take seconds, whereas clearing checks could take days.
Budgeting Made Easier
While using a debit card prevents you from making impulsive purchases, it also allows you to stick to a defined budget.
Following your customized budget for the rest of the month is easier to avoid any deficit if you use a debit card. This card allows you to have a constant check over your finances instead of a credit card that lets you make as many purchases as you wish.
Using a debit card has a lot of advantages. It is always a better option than using a credit card, especially if you want to balance your finances.
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