Debit Card: Shop till you drop
A debit card is your best companion in an increasingly cashless economy. Here’s why you should use it exclusively.
Everybody likes to shop. There’s something thrilling about acquiring new clothes or accessories, or using your money to watch a movie, eat a really great meal. Retail therapy is a real thing — and it needs the right tools to boot!
You would think that wads of cash should accompany you to your next shopping trip, but all you need is a little rectangle of plastic — the debit card. Debit cards are an exciting offering under your bank’s personal banking services. They are not as flexible as credit cards when funding big ticket purchases, but they encourage responsible spending.
How debit cards differ from credit cards
While both debit and credit cards are used in lieu of cash, a credit card pays for purchases with money that is borrowed from the bank. This borrowed money is then repaid in the next billing cycle. Meanwhile, a debit card uses funds lying in your savings or current bank account. It cannot use more money than there exists in the account, so there is no question of overspending. You can keep a closer check on your finances, which benefits your personal banking profile in the long run.
Apart from this major benefit, there are others, such as:
1 You can go completely cashless. Earlier iterations of debit cards had limited viability. You could use it for purchases and cash withdrawal, but there were few incentives for using it. But today, banks offer a host of points and discounts for swiping your debit card at merchant outlets, or availing of special offers. You can leave your wallet behind and head out with your debit card — it pays for everything so you don’t need to spend cash.
2 Low costs. Your bank gives you a free debit card on signing up for a savings or current account. You may not need to replace the card unless it is lost or damaged. Besides, banks levy little or no fees on debit card usage, so this is another area of savings for you. Most debit cards are issued for free for a lifetime, and there are nominal fees for replacing the card. Also, no fees can be levied for swiping the debit card in both private and commercial firms.
3 Many rewards for using the debit card. When debit cards were first launched in India, they merely served as plastic money for users. Today, however, debit cards have completely replaced credit cards for most customers. The card books travel and buys groceries, among many others. Banks reward customers for using debit cards with a bevy of cash back offers, discounts on utility bill payments, access to exclusive experiences, etc. — the same as credit cards.
