Is Buying a Debit Card A Good Investment?
submitted: Aug 28th 2008 |
by: ShermanBell |
Total views: 1 |
Word Count: 584 |
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A debit card is sometimes offered by backs to account holders in place of a standard ATM card. It is still an ATM card however because it has a MasterCard or Visa logo it can also be used like a credit card, with a couple of exceptions. First a debit card takes the money direct from your bank account therefore it does not incur any fees. So is this good and should you be using a debit card?
Debit cards are given to someone who opens a checking account with a bank and opts for a card. Basically, a debit card is a credit card without the hassle of fees and penalties. Users never have to worry about late payments are a complete failure to make a payment. These cards make it much easier to buy both online and in a store. Today, plastic is the way to go.
Debit cards are a great way to teach individuals the concept of managing money. If people have had issues with credit cards in the past, a debit card is a perfect way to teach someone to not spend as much money and to not go over the limit that is available. Some debit cards even come with a safety net because they are combined with the checking account and the card only has as much money that is in the account. Today many people have stopped using checks and dollar bills and have moved to debit cards.
Seeing as how a debit card works, are they completely good? No, they are not. Like everything in the world, debit cards do in fact have a pitfall; however, this pitfall can be avoided if the card is used carefully and wisely.
Because debit cards are joined with a person's checking account, all transactions are recorded in a computer program managed by the bank. The bad side of debit cards is the dreaded ATM machine. Though the machine is just a box that spews out money after a few numbers are entered, it has its pitfalls.
Just as easily and quickly as money was put into your account, money can disappear even faster, so everyone with a debit card needs to be careful. The receipts that the ATM prints out are not always true because they do not always show the correct balance in the account. If a certain transaction has not cleared, then the ATM will not have deduction of money on the receipt. People can overdraw on their account without bouncing a check.
Debit cards can also be blocked by your bank or a store. If you purchase something for $40 at a store and the store has a $50 block on your card and you want to buy something that is $10 or more, you might run into trouble until the block on your card goes away.
Debit cards are also subject to blocking just like a credit card. This means that some merchants can block off a set amount of money in the account until your transaction with them is processed. Case in point: using a debit card to pay for a $20 visit to the gas station, but the store blocks off $50 on the card. If the extra $30 was earmarked for something else, you will run into problems until that block is removed. Debit cards are a good choice if managing money is a problem. But, learn you use them wisely or you could run into trouble with your checking account balance.
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