When someone opens a bank account and gets a debit card, that card works directly with the checking account. Many people choose to use them like credit cards. Debit cards that can be used as credit cards are ones that say MasterCard or Visa on them. These cards do not get charged any sort of fee because the card only allows the amount of money in the account. With all of this information, are debit cards a positive thing to have?
A debit card is given to someone who opens a checking account at a bank and asks for a debit card. These cards are used like a credit card but do not come with the hassles of fees and penalties. Debit cards never have to be paid off and users never have to worry about late payments. These cards make it so much easier to purchase things in the store as well as online. Debit cards are quick and easy to use. With the swipe of a card a payment is made and that is that. Lose the paper and go plastic!
With a debit card, some people are able to learn how to manage money. The cards are attached to accounts with acts like a safety net to keep you from going over the amount that you have available in your account. Cash and checks both are quickly coming a thing of the past as debit cards are used more and more.
Since we now know how a debit card works, you do need that know that they do have pitfalls, especially for people who like to spend and spend and for people who are not the most responsible. Debit cards should always be handled with care and if you are someone that can do that, then a debit card is great for you.
As you know having a debit card means instant access to your checking account, so every time you use your debit card you should record the purchase in a handwritten ledger or on the computer just like you would when writing a check. The largest pitfall of the debit card is an ATM machine because many will take cash from the machine on a regular basis without considering where it is coming from.
Unfortunately, just as fast as you get money or deposit money into your account, it can just as quickly go away. If you are careless with your debit card, you are sure to run into problems. A checking account can be overdrawn, even if you don’t bounce a check. Another downfall is that the receipts the ATM machine provides are not always the most up-to-date.
Like regular credit cards, debit cards can have pre-authorization limits or blocks placed on them. This is a safety measure that some merchants put in place that will not let you spend over a certain amount until your transaction has been processed and cleared the account. An example of this would be if you used your debit card to purchase $20.00 of gas at the service station, the station actually places a $50 or $100 authorization on the card. This can cause a problem because if you were planning on making another purchase elsewhere and you needed that other $30 or $70 to do so then you will not have access to that money until the pre-authorization limit is removed
In all, debit cards are nice to have if you are a responsible and careful person. Using them wisely is very important, and if you don’t you will run into trouble.
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