Debit cards is one of the biggest gifts financial technology bestowed on the world. The popularity of Debit Cards has grown rapidly over the years and the reason for this could be linked to the benefits Debit Cards can offer when compared to cash. Today, you can use your Debit Cards to withdraw cash from ATMs and always make transactions on both online and offline stores, from anywhere in the world.
People seem to be dropping the old method of cash payment and embracing the technology of the plastic card called the Debit Cards. The different advantages Debit Cards have over physical fiat money(cash) have been discussed in this article.
What Are Debit Cards?
A debit card is one of the most widely used types of bank cards. Debit cards differ from prepaid cards in that they are linked to your bank account. The money is debited from your bank account when you swipe it. Debit cards ensure quick transactions and allow you to make purchases with money in your account rather than cash. Companies such as Visa and MasterCard issue these cards to their customers through banks. They can also be used in any store or establishment that accepts Visa or MasterCard. There is no interest rate charged for using this card, but there may be other fees associated with it, such as maintenance fee, an ATM fee, and so on.
Why Debit Cards Are Better Than Cash
You may have found yourself stuffing money into your pocket and pulling them out here and there to pay for something. Imagine paying with a N1000 note and you are given a bunch of smaller notes as your change which will be stuffed in your pocket and make you uncomfortable or even get lost at a point.
You can pay for the exact amount with a debit card, and you won’t have to worry about the loose change you’d get.
If you limit yourself to only paying your bills from your Debit Cards, you would agree with me that Debit Cards are an effective way of budgeting. For example, if you withdraw N2000 from ATM to pay for something worth N1500, you will have N500 in your pocket, which you are more likely to spend because you have it. Nonetheless, if you only use your debit card to pay the N1500, you will not be persuaded to spend more.
Debit Cards are more secure than cash. If you lose a large sum of money, your chances of recovering it are very slim, and this isn’t just because someone may try to withhold it, but because there is no way it can be traced back to you. even if an honest person finds your notes, they may find it difficult to return them to you.
Your name and bank account information are printed on a debit card, which means means that you can easily get your debit card back, if lost. In addition, if you discover you have misplaced your card, you can contact your bank or card issuer and get it blocked. When it comes to lost cash, there is no security backing up the cash.
4. It gives dual access
It can be used as an ATM card to withdraw cash as well as a debit card to make payments. Transactions are automatically updated and recorded online, making it extremely convenient to keep track of them.
5. It’s not bulky
It’s small enough to fit in your wallet or purse without feeling the weight.