BANK ACCOUNTS
Debit Cards Better than Credit Cards
Cash exchanging hands have become less and less frequent as debit cards are introduced in the mid-80’s. This alternative method of payment is done through the use of plastic cards that are electronically filled with information. This then allows your money to be withdrawn directly from your savings account whenever you want to make purchases or payment. In reality, debit or bank cards are cheques in plastic form to make it handier to its user. Credit cards are very popular but because of the stringent process of acquiring one, bank cards have become more popular. Its new found popularity may also be credited to its obvious advantage over credit card use.
There are some invaluable benefits of using debit cards rather than using credit cards for your everyday spending. Since your credit limit is only equal to how much money you have in the bank, it will not give any chance for a person who is planning to commit fraud to get an amount more than what you have in the bank. Compared to credit cards, the person behind the scam can rake up any amount up to your credit limit. This will bring you more trouble especially when you have a high credit limit.
If you are an impulsive shopper, debit cards will save you from further incurring debts beyond your means. Having this in mind, you will be force to allocate your resources properly and will be thinking of ways on how to stretch your money on hand. Debit card use will train you to become a cautious spender. In contrast, credit cards will most likely turn you into a reckless spender since you can make purchases even you don’t have any cash on hand.
There are two types of debit cards. The division was made in order to make a distinction on what will happen to your transactions if you don’t have enough funds left on your bank account. If you have a solo or electron card, your balance will first be checked every time you want to make a payment. When the system finds out that the purchasing amount is larger than what you actually have on your account, the payment will be declined. However if you have a Switch or Delta card, this will not check your balance whenever you make transaction and regardless if you have available funds or not the payment will usually push through.
If you have an overdraft agreement with your bank, you have to make an extra interest every end of the month but are usually lower than credit card company charges. On the other hand, not having any overdraft agreement with your bank will mean that on top of the principal debt and interests, you still have to settle an overdraft fee that will usually run every day until you have settled your debt.
Debit cards enjoy the convenience of what credit cards bring; although you will sometimes be asked to give more information written on your card, you will be allowed to make a transaction over the phone or the internet. Protection from fraud transaction is now being reviewed and will soon get the same security that credit card enjoys.
Tags: CREDIT CARDS, debit cards, debit cards better than credit cards, plastic cards
[...] is the original: Debit Cards Better than Credit Cards | Compare Prepaid Cards … tags: credit-card, every-end, government, lawyer-says, month, not-having, [...]
[...] Read more from the original source: Debit Cards Better than Credit Cards | Compare Prepaid Cards … [...]
Here’s my take on Prepaid Debit Cards (payroll cards) based on my own experience:
I used to work at a large national restaurant chain and our card was pretty bad. But, from what I hear, it was typical because most cards either have a monthly fee or pretty limited as to the free items. I have worked at Starbucks for about 7 months now and they allow us to have a card called the Money Manager Card. The choice was pretty simple because there are no monthly fees, I can use it on their network (allpoint atms) free at all times, never any fees to buy things (signing or using my PIN and getting cash back if I want…all without a fee or surcharge), no overdraft. Let’s just say I haven’t paid a fee in the entire time I’ve had the card. It’s pretty simple to use it at no charge and I really don’t have to tip-toe around any limited free items like most other cards I have seen have.
Oh, and don’t lose most payroll cards! If you do, it’ll cost you $$ even to get the replacement sent by the post office. My new card give free replacements when delivered by the post office all of the time. Or, if I want, I can get it delivered by Fedex for $10. Pretty reasonable as I sent something by Fedex a month ago and paid $14!
My point is, if an employer is set on offering its employees a Paycard, it should do both the company and its employees and offer a Paycard that truly costs $0 to use. When I say $0, I mean $0. Not just $0 if you jump through certain hoops, etc.
I should state that Walmart has something that is similar sounding to Money Manager Card. I think it is the Money Card or something like that. That card is definitely not the same.
I did a quick Google search on Money Card when investigating the Starbucks offering and mistakenly clicked on a link to a Money Card “problem” page where people complained about it. Then, I realized that “Money Card” is not “Money Manager Card”.
Thought I would let you know so you don’t make the same mistake and get yourself a card that will end up costing you $$$$.