Advantages and Disadvantages of Debit Cards : UStechPortal.com

Both the debit cards and the credit cards have a series of advantages and disadvantages that imply a series of conditions for the client that are imposed by the bank. Debit cards can include all types of insurance with higher or lower coverage’s. The most common are travel insurance, which covers everything from accidents to medical travel expenses, insurance for damage or loss of luggage and even life insurance to cover the balance of the card at the time of the death of the owner. In addition, they also include insurance for theft and loss, insurance against fraud and purchase protection insurance that covers the theft or accidental damage of what you bought with the card. Below are some Advantages of Debit Cards

Benefits of debit cards:

A debit card can be used by anyone. If you are thinking about acquiring one, then we share some Advantages of Debit Cards.

1. You have control of your expenses. Unlike cash, the debit card allows you to take more control of your expenses, since you can check your monthly expenses, the date and the place where you made the purchases, through your account statement.
2. It is more secure. This financial product is safer in contrast to cash or checks, because in case of theft or loss you can report it to cancel it and avoid the loss of your funds.
3. It is comfortable. When making a payment, it is easier to take out your card than to fill a check or withdraw cash from your wallet.
4. Provides greater practicality. If you have an unexpected expense outside the house and do not have cash, you can use your card; you can also use it to buy over the Internet.
5. It protects you from fake money. The debit card avoids inconveniences that the cash has as the risk of receiving false bills, coins of small denomination or that the shops have no change.
6. You get rewards: There are stores that offer discounts when paying from debit card and even with some you can accumulate points when buying and obtaining prizes or entering contests.
7. It does not generate more expenses. With a debit card you make use of your own money, which exempts you from paying interest or accumulating debts.
8. It gives you freedom. If you travel outside the country, you can use your card in case the cash you carry is not sufficent, or else, it gives you the opportunity to withdraw money at any cashier at the corresponding exchange rate.
9. Effective throughout the world: when you pay with the card the conversions are made automatically. This is useful when traveling abroad or paying at online stores established in other countries, so that a much larger market is practically opened.
10. No interest: As only the money that one has is used, no interest is generated by the use of credit or amounts that are not really ours. This allows having an account without the worry of generating a debt that accumulates and becomes impossible to settle.

Drawbacks of debit cards.

Below are some Disadvantages of Debit Cards

1. Charges and fines – The disadvantage of debit card is that some banks may charge monthly charges for the use of the debit card.
2. Greater responsibility – Another big Disadvantages of Debit Cards is that with a debit card you have less protection against fraud. On the other hand, with a debit card it all depends on when you report the fraudulent charges or the theft of the card.
3. Limited quantity- The money used comes from the savings account itself, so there is a limit that is well known and with which you may not be able to do much. In this sense, it is only a tool to have amounts that are actually available, so if there is not much saved it is not very useful.
4. Less safe – Unlike other options, it has less protection against cases of theft or loss. Because it is practically linked to the savings account held at the bank, if someone else has access to the debit card there is a risk of losing everything.
5. Also, in case of acquiring a defective product and wanting to return it or notice a strange transaction, it is more difficult to recover the money. In the case of credit cards, this does not usually happen because there is greater protection for the customer and practically you pay with what they lend us.
6. Additional commissions: When acquiring it there can always be extra commissions that are overlooked and noticed until they appear on the statement. This depends a lot on the financial institution but can be from exceeding a certain amount of expense, using the ATM of another brand or even being limited to stores and establishments that can be used without extra charges.