There are plenty of banking cards available, namely, the ATM card, credit card and the debit card. Each of these cards has different features and can be used for different options. However, amongst these options, the debit card is one of the most favourable options.
Even then, most individuals barely use this card, other than to withdraw funds. While it can be used to withdraw funds, it can also be used to make an online transaction. Additionally, it offers several similar safety features, such as the PIN input, and the embedded chip system which encrypts your transaction data.
However, with the recent implementation of the demonization move by the government, more and more individuals are using the debit card for other purposes. Statistics have indicated that, ever since the move by the government, the usage of debit cards has increased almost 100%.
Here are the reasons why you should use the debit card:
You need to reduce your credit card debt: Using a credit card offers you plenty of financial flexibility, but the fact remains that you need to repay back the borrowed funds. This is often a big responsibility as very often, many of the card owners are behind on payments. Additionally, there is also the inclusion of interest rate on the amount borrowed. Any delay in repayment will increase the overall amount that needs to be found. Therefore, to reduce the reliance on the credit card, the debit card makes for a great alternative.
You get perks for paying debit: The ATM card does not offer reward points, whereas credit cards are not the only one who do so. Several merchants and retailers are offering incentives to consumers who pay off their purchase with a debit card. This is because the credit card attracts a processing fee, which merchants would love to avoid by switching to the debit card. Keeping with this trend, most lenders have also offered reward point systems for debit card users.
You will avoid any unnecessary fees: Several banks waive monthly checking fees, especially for account holders who opt for debit purchases each month. In other words, if you favour your other banking cards too much, it could mean you forfeit an opportunity to avoid this fee.
Save time: The problem with ATM cards is that it can be used only for one purpose. With the credit card, it will take time for the payment to be registered, this, in turn, will lead to several delays. In this way, you can save considerable time on all your transactions, especially if you need to get them done on an urgent basis.
Get a better foreign exchange: If you are a frequent traveller abroad and need to access physical funds urgently, you can opt for using a debit card over the credit card. This is because, you are more likely to withdraw funds from the foreign local ATM at a wholesale exchange rate, as compared to a percentage one.