Debit cards have become a big part of everyday personal finances but their convenience should not be taken for granted as something that comes with every bank account.
While most bank accounts now come with a basic card for ATMs and EFTPOS purchases, also known as a “handycard”, “key card” or even “cash card”, these cards do not offer access to options like shopping online.
Contactless payments are here to stay, but many people still have no idea how this kind of card processing technology actually works.
Both MasterCard and Visa have recently launched major campaigns for their contactless payment debit card options – PayPass and payWave respectively – and most banks now issued debit cards with this technology.
While debit cards may seem like one of the most convenient and manageable payment options, they still come with a set of risks that cardholders need to consider.
Just like there are specific issues that may arise from using cash or credit cards, debit cards have a set of common problems that often come up when people are not aware of them.
Contactless payment options are building up momentum in Australia with both MasterCard and Visa debit cards now offering this feature.
With a debit card that has MasterCard’s PayPass or Visa’s payWave system, in-store transactions can be completed in seconds without the card ever leaving your hands.
Instead of the usual swipe or card insertion for an EFTPOS machine, with a PayPass or payWave debit card people can complete transactions by simply waving or tapping their card against the machine.
While many people are happy to stick with one bank for most of their life it could end up costing them more than they realise.
As more and more options become available, bank accounts and debit card features are regularly updated. While most banks will inform people of any changes to current accounts, if they do not compare the changes with other options they might not be getting the best deal for their money.
To help you figure out if your bank is really worth it, here is a look at some of the most common signs that could indicate you need to make a switch.