Debit cards provide the card holders with a facility to pay directly through their account without the need for cash or even checks. There are numerous advantages that a debit card holds over other forms of payments. Mentioned below are some benefits of debit cards:
Due to poor credit rating, it can be difficult for some people to acquire credit cards. Acquiring a debit card is indeed not difficult at all.
So, in such cases, a debit card can prove to be very useful by allowing the person to carry out plastic transactions.
- Convenience– The most important benefit of a debit card is the convenience that it provides to the customers. The customers do not have to carry cash all the time with them or even write down frequent checks in order to pay for something. Paying with a debit card directly from the account is an easy and convenient way.
- Using debit cards to make purchases can save time for both, the card holders as well as the receiver.
Security– The level of security involved in debit card transactions is the optimum. Some instances where checks are misused can take place. The misuse of debit cards is a rare possibility as compared to other forms of payments. Also, the transaction is recorded electronically and is reflected on the check in account of the customer, adding to the extra precaution.
- Universal acceptance– The profound system of debit card payments has been gaining popularity across many countries. Its other benefits such as security and convenience have influenced retail stores, hotels and other businesses to accept debit card payments. Debit cards are welcomed almost everywhere by most merchants, making them universally accepted.
- Another benefit of a debit card is that it involves no credit at all unlike credit cards. Whatever money is paid through a debit transaction totally belongs to the card holder and is not borrowed. There is no questions regarding rate of interest and grace periods involved which are present in credit card payments.
Apart from this, there are many more benefits that are offered by a debit card and may differ according to various debit card schemes and plans introduced by issuing banks and financial institutions.