Are you an impulsive shopper? Are you someone who is easily tempted to spend more than what you planned for or have? Can’t limit your addiction to spending? It’s time to own a debit card, a sure-shot solution to curb all the above addictions especially for the ones who have a tendency to fish in troubled waters as far as money is concerned.
Debit cards are linked to your bank account and the money you owe is accurately drawn out from this account. The transactions involving debit cards tend to be smooth as it needs little meddling into the verification criteria. The money transfer out of your account and into the shopkeeper’s account is immediate and accurate to the last penny. What’s more, debit cards make your purse light as you don’t need to carry heavy cash or even the small change you might need for your purchases. With Debit cards, you are using available money thus preventing you from earning a bad credit rating. Debit cards also provide you with the option of withdrawing money from your bank’s ATM without any surcharge or withdrawal fees though most banks do place a cap on the amount you withdraw. Also with a credit card, the shopkeeper will be charged 1.5% – 2% extra for each transaction which brings a frown to the shopkeeper’s face. So, shopkeepers either limit accepting credit cards or put the extra surcharge for using credit cards on customers making it an unpleasant shopping experience.
But debit cards also have their own share of disadvantages. Since the amount you owe is deducted immediately from your account, you tend to lose out on the extra time that credit cards offer you to settle your dues. You may not always be aware of the exact money in your account and when you tend to use it for transactions which involve huge sums of money which are higher than what you have in your account, the transactions fail leading to a bad shopping experience. Also, not all merchants accept debit cards thus forcing you to either use cash or cheque or credit cards. In such instances, you may have to run to the nearest ATM which may not be near always to get hard cash. Thus, with a debit card, it is always imperative that you move around with some hard cash in your wallet. Another disadvantage is that you may not be permitted to use your bank’s debit card in an ATM of a non-native bank. Even if allowed, the non-native bank might charge you a certain percent for each withdrawal thus making you fume as you end up wondering if it’s worth going around with a debit card.
