What are the features of a debit card?
Various debit cards mostly function the same way but don't take it for granted they all will be created equally. The chief differences usually come down to which features your particular bank chooses to include.
Some features are below:
- Convenient: By using a debit card, transactions are done instantly without the involvement of cash. It is simple to use and makes transactions fast, easy and convenient.
- Encourages Judicious Spending: In debit cards, there is no feature of the credit facility; thus, this encourages judicious spending.
- Acts like an Emergency Fund: A debit card can be used to withdraw money from an ATM, in case of an emergency. You can shop at any store by using this card even though if you’re not carrying cash.
- Visa or MasterCard: The first things you'll observe is whether the debit card is Visa or MasterCard. This factor doesn't much matter because both are accepted globally and consist some handy features.
- Linked bank account: Debit card is essentially used as a tool for spending own money, and for this reason, it will be linked to a bank account. The funds in the account will be the funds you have available for spending. As the procedure goes, you'll first open a bank account and then obtain a debit card; thus, it's your priority to choose a good bank account. While choosing a bank account, the key factor to keep on mind is to seek an account that has no monthly service fees. To get better interests on your funds, always make sure to regularly transfer them to your savings account when you don't wish to use them for spendings.
- ATM access: Owning a debit card is a great handy tool to have since it provides you access to your cash via ATMs. Every bank generally has an ATM network where you can access it for free while using a debit card. They will also allow using other partnered banks' machines.
- PayPass, payWave and other contactless payments: In this modern banking system, contactless payment methods are on the rise, this includes PayPass, payWave, and digital wallet technologies. Nowadays, banks are introducing debit cards with the option of using at least one of these methods for making contactless payments because they are quick and easy.
- Overdrafts: Debit cards can have overdraft options so that if you are running short of savings, you can use this option to pay for the purchases.
- Rewards options: Debit cards have different rewards options when compared to credit cards rewards system. However, you can benefit on some perks such as availing offers on few retail products and event tickets, get cashback on tap and go purchases and earn rewards points.
- Security Features: In general, debit cards are one of the secured ways of accessing your funds. It’s protected by the bank’s anti-fraud policy.
