The value of a debit card.

29 May 2009 No Comment

by Brian Jefferson

For those who have only had bank accounts in the past twenty years or so, they may not realise just how significant ATMS, debit cards and credit cards have become as part of modern banking. It is almost impossible to imagine modern banking without an ATM and a debit card, and it is important to understand just how important they are in managing a modern bank account effectively, and the ability to send money and receive money.

It is not that long ago that most financial transactions undertaken by individuals were either cash transactions or involved the use of a check. This has changed significantly in the past twenty years, and many more banking transactions are either in the form of a debit card or a credit card transaction. Some business nowadays will not accept a check as a payment while some will only accept debit card or credit card payments as part of the verification of the transaction.

Of course, the rise of the internet and of online shopping has played a large part in the rise in the past few years of debit cards and credit cards, making significantly easier and quicker, purchases that would have taken a good few days longer not that many years before, leading to a fall in the use of checks.

Retail shopping has been another area where debit cards and credit cards have grown exponentially ” negating the need for carrying around much cash, just like cheques, but unlike cheques much easier and quicker when it comes to completely the transaction, especially with modern chip n pin technologies. The card user however does just need to be aware of small retailers who may not allow debit or credit card use for small transactions.

Debit cards and credit cards of course make sending and receiving money much easier, as it is often now instant, with the only necessity being finding an ATM from which to withdraw the money and pass on to whoever.

Withdrawals from ATMs however are one area where the user of a debit card or credit card must be careful of course, as there may be transaction fees involved, and keeping track of these fees is an important part of debit card and account management in order to avoid going overdrawn without knowing it.

In the vast majority of cases, getting a debit card is as simple as opening a qualifying bank account. Accounts which do not grant a debit card are an increasingly small percentage of bank accounts as a whole, and the advantage of a debit card over a credit card is that it only allows you to spend the money you actually have in the account in the first place.

The chances are you already have a debit card or a credit card, so prevalent are they in much of the banking system. Almost all banking accounts come with a debit card as part of the package, and they are an invaluable tool in helping to manage your account and your daily finances

The debit card can be seen as easy money, but it may then be easier to go overdrawn and incur extra fees, which can be very expensive.

There are times when credit card may be a better option than a debit card, particularly in terms of payment protection, but in the vast majority of cases and with careful considered use, a debit card is not only more than adequate, but a vital tool in modern financial management and the ability to send money and receive money.

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