If you are interested in finding out how you could benefit by using a debit card over cash, then you have come to the right place. Here you can find out why your debit card is such a powerful tool in the world of purchasing.
1. Tracking
If you want to track your money properly then you need a solid system that gives you the chance to keep tabs on your spending. If you use cash, then you may find that you have to do the math several times a week just to try and keep track of how much you have spent. If you use your debit card on the other hand, then you can have all of your transactions recorded directly to your account. This gives you the chance to monitor your spending and your balance with ease. If you are the type of person who likes to carry cash, then you should know that this can be quite detrimental to your financial health too. After all, it is often the little purchases that add up over time, and with cash, it is much more difficult to keep track of your change.
2. Flexibility
Cash is not accepted online. If you have a debit card, then you can use this just about anywhere that accepts online payments. With a checking account you can use your Visa® debit card anywhere you want, so you have no limits when it comes to the purchases you want to make or the products you want to buy. Instead of writing checks or having to visit a branch, you can simply go to an ATM to get cash, or you can avoid this entirely by just using your debit card to pay in the store of your choosing. Using your debit card is not only faster, it is also way more flexible and it gives you the power to take complete control over your spending.
3. Protection against Fraud
If someone happens to steal your cash and they spend it, then you have a very slim chance of being able to recoup that money. If you have a debit card, then you should know that this comes with built-in fraud protection. Some financial institutions give the cardholder the chance to stop any withdrawals or payments from being made. All you have to do is go onto your online account, report the card as being stolen and the transactions will be frozen instantly. With cash, you cannot find out who has your money, what they have been spending it on or anything else of the sort. If you are yet to register for online banking, then you just need to call the debit card provider, and they will limit the amount that can be spent on the card, or they will shut it down for you when you prove ownership of the account.
4. Convenience
When you pay for a service or a product with a debit card, you do not need to worry about exchanging coins or paper bills. If you want to buy something when you are out shopping, then the only thing that you have to do is get out your card and tap it on the card reader. You don’t need to count change and you do not need to fumble as you wrestle with your bags.
5. Online Accessibility
Another huge benefit of using your debit card over cash is that you can check your balance at any time by checking your online account. You can also split your money across different sub-accounts. This means that you can have a rainy-day fund set up if you should ever need it. The best thing is that you can transfer money from this account at any time, to your main balance by using your mobile phone.
6. Digital Payments
You can also link your debit card to a digital payment system, such as Apple Pay. When you have Apple Pay enabled, you can then use this to pay when you are out on the go, meaning you do not even need to have your debit card with you. This makes the whole process of paying with a debit card over cash, way more convenient. It is also very easy for you to enable features like this on your phone, and in some ways, it is even more secure when compared to carrying cash with you. The main reason for this is because the person who is using the digital payment method will often have to key in a pin code, or they will have to enable facial/fingerprint recognition in order for the payment to be processed.
FAQs
With a debit card, you can pay for the exact amount and there's no need to worry about getting loose change. Contactless payments have made paying with a debit card even more advantageous over cash as you don't need to root around in your pocket to find the small change you need to buy a coffee or a bar of chocolate.
Why use a debit card instead of cash? ›
With a debit card, you can pay for the exact amount and there's no need to worry about getting loose change. Contactless payments have made paying with a debit card even more advantageous over cash as you don't need to root around in your pocket to find the small change you need to buy a coffee or a bar of chocolate.
What are 5 pros of using a debit card? ›
Benefits of Using a Debit Card
- Convenience. ...
- Security. ...
- No Incurred Debt or Interest. ...
- Few or No Fees. ...
- Holds You Accountable for All Spending. ...
- Makes It Easier To Stick To Your Budget. ...
- May Offer Perks or Rewards. ...
- Credit Score Doesn't Matter.
Convenience
When you pay for a product or service with a debit card, there's no exchange of paper bills or coins. For example, if you want to buy something at the grocery store, open your mobile wallet and tap to pay with your debit card instead of fumbling through your wallet for cash.
What are 5 disadvantages of debit cards? ›
Here are some cons of debit cards:
- They have limited fraud protection. ...
- Your spending limit depends on your checking account balance. ...
- They may cause overdraft fees. ...
- They don't build your credit score.
Credit cards offer conveniences that cash just can't, such as making purchases online and booking flights, hotels, and rental cars. Your cash savings may not cover certain expenses. You may not have enough cash to cover unexpected costs. Life is unpredictable, and so are certain expenses.
Is there ever a reason to use a debit card? ›
Eliminate Cash – You don't have to carry around cash if you regularly use a debit card. If you do need cash you can always stop by an ATM and take out however much you need or get cash back when you make a purchase at most stores.
What is a benefit debit card? ›
Debit Cards make transactions fast, easy and convenient to use. Works as an Emergency Fund. Debit Cards have the ability to give you cash. They double up as ATM cards and allow you to withdraw money from an ATM.
Why do people use debit cards wisely? ›
Unless you are carefully keeping track of your bank balance, it can quickly and easily be depleted. Those who use their debit card without keeping track of the cash leaving their bank account, may quickly find themselves without funds for day-to-day cash expenses like rent, transportation or food.
Why do people prefer debit cards? ›
You can avoid merchant fees
“If the debit card isn't charged a processing fee, it would be a better choice.” Also, you may want to consider using a debit card rather than a credit card when making an international purchase if you have a credit card that charges foreign transaction fees.
Both debit and credit cards are also safer methods than cash when it comes to health protections, as they don't have to pass from your hand to another person's or need to be inserted into a terminal. Tap to pay is a contactless way to use your debit or credit card that's even faster than dipping or swiping it.
What are three disadvantages of using cash? ›
Disadvantages of cash payments
- Security risks. Carrying or storing large amounts of cash can sometimes be risky. ...
- Lack of traceability and records. ...
- Inconvenience for large transactions. ...
- Risk of counterfeiting. ...
- Cash not always accepted. ...
- Less convenient for remote transactions. ...
- International transactions. ...
- No earned rewards.
Debit cards reduce the need to carry cash since you have direct access to your money. They are also protected by a Personal Identification Number (PIN), but PINs are not always used for every purchase.
Why do poor people use debit cards? ›
There are two mechanisms: first, debit cards reduce transaction costs of accessing money; second, they reduce monitoring costs, leading beneficiaries to check their account balances frequently and build trust in the bank.
Is it better to carry cash or debit card? ›
Protection against Fraud
If someone happens to steal your cash and they spend it, then you have a very slim chance of being able to recoup that money. If you have a debit card, then you should know that this comes with built-in fraud protection.
What is a benefit of using a debit or credit card instead of cash? ›
Convenience. Credit cards are often more convenient and secure than carrying cash. As long as you can pay your bill in full each month, using a credit card is typically more advantageous than using cash for in-person purchases.
Why might someone choose to use debit cards? ›
Money comes out of your checking account when you pay with a debit card. You don't pay extra money in interest when you pay with a debit card. You can use a debit card at an ATM to get money from your checking account.
