Debit Cards

Nature of debit card

Debit cards represent another version of a piece of plastic but come with inbuilt features that prevent a card user from slipping into a debt trap. A debit card allows you access to the funds in your bank account that you can use by swiping it.

Issuer

Banks are the issuer of debit cards as they allow you access to your bank account. The linking of your account with the card is done by the bank so that you can access the amount in your account and no more.

Cost involved

There is no cost involved in using a debit card because no institution is lending you any money; you are using your own money. The bank might charge you some annual fees for the usage of the debit card but you will not have to pay any other financial charges.

Control over payments

Just because you are using the money present in your bank account it does not mean that you can splurge using your debit card. There is a need for you to maintain discipline so that you use only that amount you need to actually spend.

Point of acceptance

Most establishments now accept a debit card so you can use this just like a credit card to make expenses at shops, restaurants and so on. In addition, the debit card also allows you to withdraw money from ATM.