Benefits of using a debit card - Park National Bank (2024)

FAQs

Benefits of using a debit card - Park National Bank? ›

They often come with PIN protection, and if your card is lost or stolen, you can quickly lock the card in our mobile banking app to prevent unauthorized transactions. Convenience: Debit cards make cashless transactions a breeze. You can use them for online shopping, in-store purchases and to withdraw cash from ATMs.

A Debit Card Is Convenient To Use

Thanks to debit cards, there's no need to carry around wads of cash. They're also secure, requiring a PIN or your zip code to verify the transactions. These benefits are especially evident when you compare them to old-fashioned paper checks, which many retailers no longer accept.

Earn Valuable Rewards

Earn one point per $1.00 in qualifying purchases. No limit on points earned. Redeem points for travel, merchandise, and more.

The CIBC Advantage Debit Card is a debit card that you can use around the world to make purchases directly from your account(s). Even though your card is a “debit” card, some payment terminals require merchants to press “credit” or “Visa” to process Visa Debit transactions through the global Visa payment network.

Credit cards offer flexibility to help you afford these purchases in the moment—but with a debit card, you can only cover those charges if the funds are in your bank account. Large purchases can be a hassle: Some debit cards have spending limits that can complicate efforts to make large purchases.

Your Credit Can Take a Hit

Not only is a debit card unhelpful in building your credit, it can actually bring your credit score down—if you overdraft and carry a negative balance at your bank, it will show up as another debt on your credit report.

With a debit card, the money is already gone from your checking account, and you're trying to get your own money back. Debit cards are more vulnerable to fraud than credit cards, according to the Identity Theft Resource Center in California, a nonprofit consumer education organization.

Does my card have daily purchase limits or cash withdrawal limits? Yes. To help reduce the risk of fraud and funds that may be withdrawn from your account, the Signature-Based “credit” purchase limit is $1000.00 per day and the PIN-Based “debit” purchase limit is $510.00 per day.

With our chip-enabled Visa credit card you can make purchases anywhere Visa is accepted. You'll also get the benefit of earning unlimited rewards with your purchases, which can be redeemed for merchandise, travel, experiences and gift cards.

Is it better to use your debit card or credit card? ›

Credit cards often offer better fraud protection

With a credit card, you're typically responsible for up to $50 of unauthorized transactions or $0 if you report the loss before the credit card is used. You could be liable for much more for unauthorized transactions on your debit card.

No Debt – With a credit card it's easy to purchase anything you want, even if you don't have the funds. With debit cards, the money comes directly from your bank account, so you avoid spending more money than you have. Plus, you don't have to remember to pay the credit card bill once a month.

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.

Generally, debit cards don't give rewards or cashback earnings for purchases. Those that do offer very low earning rates compared to credit cards. This means that using a debit card to buy $100 in fuel might cause the cardholder to miss out on a 5% cashback earning promotion from their credit card.

Though many credit cards charge an annual fee, debit cards don't. There's also no fee for withdrawing cash using your debit card at your bank's ATM. Credit cards, on the other hand, can charge a cash advance fee plus a steep interest rate for that convenience.

The primary benefit of debit cards is they make it more difficult to spend money you don't have! If you're working within a tight budget, using a debit card may be to your advantage. Save the credit card for emergencies only. Otherwise, a credit card is likely the better choice.