Owning a plastic debit card allows its holder to save very noticeable amounts. This may occur:
- As a result of participation in various discount programs, the quantity and level of which is determined by the status of the payment instrument
- When using a cash back, which in fact is also a discount system
- Due to the lack of fees for the design and maintenance of the card.
The high level of competition prevailing in the domestic banking sector forces financial institutions to constantly develop and put into practice new ways to attract and interest potential customers. Often they are expressed in the reduction or zeroing of tariffs for the production and servicing of cards. Now with this car you can also check onevanilla balance .
An important difference between a debit card and a credit card is the impossibility of expenses that exceed the amounts actually available on the account. The lack of credit and overdraft does not allow the holder of the payment instrument to fall into a peculiar dependence on the borrowed funds of the bank, inherent in a large number of credit card holders. This is not only much more profitable, but also allows you to clearly control your own costs and expenses. The latter circumstance is extremely important in the current conditions of a sluggish financial crisis and a constant lack of funds.
Owning a debit card provides the owner with extremely wide functionality:
- Making purchases, both in real stores, and in various online services
- Non-cash storage of funds
- Saving of financial resources due to cash back and discount programs
- Making profit in the form of interest accrued on account balances.
Getting so many features does not require any undue effort or expense, since the card issuing procedure is very simple, and the cost of maintenance is either low or absent.
Debit Card Disadvantages
The number of drawbacks inherent in debit cards is much less than the number of undoubted advantages. However, it is necessary to know about them in order to minimize possible losses.
Firstly, in most cases, a fee is charged for servicing a payment instrument. It is debited from the client, regardless of whether he used the card or not. Naturally, you should carefully read the contract with the bank and study the tariffs it offers in order to try to reduce possible costs.
Secondly, a limit on cash withdrawals is set for all cards. The restriction may apply to the daily or monthly amount, and the specific size depends on the type of plastic. Therefore, it is recommended that you clearly understand how the issued card will be used in order to choose the most suitable and least expensive option.
Thirdly, in some aspects a debit card is inferior to a deposit. This concerns two important issues:
- The bank has the right to unilaterally review the interest accrued on the account balance
- Funds placed on the card are not included in the mandatory deposit insurance program.
The listed few minuses are both quantitatively and qualitatively inferior to the long list of advantages that holders of debit cards receive. Therefore, it is quite obvious that the popularity of a convenient and profitable financial and payment instrument will only grow in the future.