A debit card is a payment card that allows bank clients to withdraw funds directly from their bank accounts to make purchases, pay bills, and perform other types of activities. They provide individuals with a safe, simple, and efficient means to manage their accounts and conduct numerous sorts of transactions inside the wider financial system.
It’s crucial to remember that the precise benefits provided by debit cards differ depending on the bank and the type of card you have. Always check with your bank to learn the specific perks of your debit card.
When you use a debit card, the amount you spend is promptly taken from your associated bank account. Unlike credit cards, which enable users to borrow money up to a set credit limit, debit cards only allow you to spend money from your account.
Advantages Of Using Debit Cards
- Customer Loyalty Programs: To encourage consumers to use their debit cards for transactions, banks frequently provide reward programs, cashback incentives, and other perks. This increases client loyalty and may invite new consumers to use the bank’s services.
- Trackable Expenditure: When you use a debit card, your bank automatically tracks your expenditure. This might assist you in budgeting your money and avoiding overspending.
- Convenience: Debit cards make it simple to pay for products and services. You may use them anywhere that takes debit cards, which is almost everywhere these days. You are not required to carry cash or make changes.
- Cashback, EMIs, and Installment Plans: Some debit cards allow you to divide significant purchases into equal monthly installments (EMIs). This is especially handy for purchasing pricey products such as electronics or appliances without straining your finances. Many debit cards offer cash-back benefits, allowing you to save money on ordinary transactions.
- Insurance: Some debit cards have insurance features like purchase protection and travel insurance.
- Financial Inclusion: Debit cards help with financial inclusion by allowing those who do not qualify for credit cards to engage in the formal financial system. This enables individuals to conduct transactions more safely and conveniently than if they just used cash.
Apart from these advantages, debit cards may be used to make online purchases, move money between bank accounts, and even withdraw cash from ATMs worldwide.