Using a debit card gives spenders flexibility

Don’t feel forced into shopping on credit, use a debit card for similar spending options.

08:18 11 September 2013

If you don’t like to use credit cards you may have noticed that it is sometimes difficult to shop. Certain hotels require credit card numbers before allowing room reservations, and the same can be said of holiday cruises and vehicle rentals. In addition to that, you can’t shop online typically without using a credit card number. The reality is that credit cards can get some people into trouble and it might be preferable to use a debit card instead so you can still do what you want without running up debt that might accidentally be forgotten. Here are a few of the potential benefits of using your debit card:

• Fraud alerts—many banks monitor basic information regarding transactions and compare it with your typical purchase history. Purchases made in odd places or unusual amounts show up as potential fraud and you usually receive a phone call to confirm that the transaction is legitimate. This is a huge benefit and can catch someone trying to steal your identity or funds.

 

• Flexibility—there are some types of transactions which require you to use a card with a MasterCard or Visa logo, which your debit card should have. This enables you to use your debit card to make reservations or shop online, but the funds come from your cheque account.

 

• Interest-free—while you might pay a small processing fee for everyday transactions, remember that you won’t be paying interest and finances charges on the amount you spent so what you spend won’t be coming back to haunt you month after month.

 

• Records—just like credit cards; you have the benefit of receiving records in the form of bank statements that show your transactions. It’s very convenient when you need records of certain purchases, amounts, dates, or anything for tax purposes.

 

• Safety—though your debit card spends like cash, you have protection if it is lost or stolen.