With the increasing use of plastic money and digital medium for making payments, cash in the form of paper money is slowly losing its importance. Plastic money is rapidly becoming one of the most widely used forms of payment platforms. But what is plastic money? There are essentially two different types of cards that can be classified as plastic money – a debit card and a credit card. In this article we will talk about the different forms of debit cards and the reasons behind it becoming one of the most popular types of plastic money available in the market today.
A credit card essentially helps you to take money on credit and you need to pay back the money when the financial institution raises a bill. But in case of the debit card, you are making an immediate payment and hence no terms of credit are involved in it. Before we go into the details as why you should opt for a debit card, we need to understand the basic functions of it.
A debit card is linked to the bank account you have with the financial institution or bank. When you are getting a debit card, you are actually getting a pass to use the balance in your account without having to go to the bank each time or signing a cheque each time you make a payment. When you are swiping your debit card, you are essentially taking out money from your bank through that card. The money automatically gets debited from your card as soon as you swipe it to make a payment.
Another very good benefit of a debit card is the ATM facility. An ATM allows you to draw money with the help of your debit card. At these ATM machines you need to use the card and put in the specific pin allotted to you and you can draw a limited amount of money each time. Again in this case, the money is directly debited from your account as you get the cash in hand.
Just like a credit card, in case of a debit card as well, all you need is an account in the financial institution of choice. When you are applying to open an account in a bank, you will be given a debit card with the induction letter itself. They will also provide you with a unique pin number that you need to use while using the debit card. The debit card itself does not require any specific documentation. All you will need to fill up is a form that will be a part of your account opening details.
A debit card makes it very easy for you to carry a small amount of physical cash and just swipe the card whenever you need to make bigger payments. This ensures that you do not end up having to carry a lot of cash at all times but also never fall short of cash as well. But along with that there are many other benefits of the debit card as well.
When it comes to a debit card, you do not need to fill in any extra forms or get any special verification done. While you are opening your bank account, your banking personnel will give you the benefit of a debit card. The card is actually a part of the welcome kit that you get on opening the account.
A debit card is definitely a very convenient thing to have. When you are carrying a debit card, you do not have to carry much cash with you, though you are having your whole account balance at hand. All you need to do is swipe your debit card whenever you need to make a payment. This helps you to get the money you need for the payment without having to carry a lot of paper money, making it a very convenient option.
Carrying a huge amount of cash at all times is not a very safe option. But is swiping the card safe enough? Since your debit card is directly linked to your bank account, you do not need to worry about safety. In case there are any deductions from your account, you will immediately be notified and thus it is very secure as well.
Most outlets and payment portals accept any debit card. This makes the whole process rather simple and convenient.
The ATM facility is definitely one of the most beneficial aspects of a debit card since it makes payments very easy and convenient.
Though debit card is the most convenient form of plastic money, there are a few things you need to keep in mind.
While making online payments you can easily link your debit card to any platform as most payment portals allow debit cards.
These are some of the reasons why you should definitely opt for a debit card. It definitely makes your life much simpler.
Unlike the credit card you do not have any grace period to make the payment, your account will get debited as soon as you swipe your card.
ATM fees and other general fees are generally charged when you use the debit card. Though these fees are rather nominal, you need to keep them in mind while using your debit card.
A debit card is definitely one of the most popular forms of plastic money. From their easy availability to the ease of use, they are definitely a must have for all individuals. Just make sure not to share your personal ID and keep a check on the fees, if you do not wish to face any problems with it.