Debit cards are good for people who don’t like carrying so much cash. They can be more convenient and safer, and they can also allow cash holdings to earn interest. However, it may not be possible to be completely cash free.
Sometimes debit cards are mysteriously declined mysteriously. But there are a number of good reasons this may happen. Some debit cards are now associated with savings accounts, which aren’t like traditional transaction accounts. Most savings accounts don’t carry an overdraft facility, so if the account’s balance is low, a debit card transaction which would empty [...]
Debit cards are often promoted as a cheap alternative to credit cards. While this can be true in many cases, overdraft fees from the associated account can be a trap for the unwary if they are not watched with reasonably care.
Debit card loans have become popular recently, as they are a quick way to borrow small amounts of money and there is rarely the need for the credit checks necessary for other types of loans. However, it must be remembered that these loans have nothing to do with debit card providers.
Debit cards were first promoted as a replacement for cheques and so it’s quite natural to compare the two or to use them interchangeably. However, debit cards are most suitable for certain circumstances and cheques for others.