When it comes to paying for our daily expenditure, most of us usually go for a credit card instead of a debit card. However, if you make careful consideration in this aspect, you’ll find the latter to be much more beneficial than the former. Let’s keep reading to know more about it.
You Can Track Your Expenditure
Even if you can’t exceed your available funds, it’s easy to lose track of your spending without proper record keeping. And this can pose trouble in future, especially if you have a tight budget.
When you make purchases using a debit card, your expenses are promptly reflected in your banking account, irrespective of whether you have a receipt, and without the need to input them manually. In addition to this…
Managing your expenses with a debit card is simple – just login and track your progress!
As per an Accountancy firm in UK, checks generally leave a comparable digital footprint once processed, but they have a longer processing time compared to debit card transactions, resulting in a delay between writing a check and it showing up online.
Not documenting a transaction in your ledger, along with the delay, could give you a false impression of having more money than you do—resulting in writing a bounced check!
Much More Convenient
Paying for items with cash comes with the risk of not having enough available now of need.
On the contrary, your debit card provides a hassle-free method to make payments using funds from your bank account when you require it the most. To use it, all the cashiers must do is scan it. As the saying goes, ” simple as can be, like squeezing a lemon.”
If you don’t have the required cash for payment, you may always use your debit card at an ATM to withdraw some money.
The card can essentially be used to act as a substitute for cash or get a little bit of additional money. So, no matter where you are, you’ll never run out of money.
Help with Budget Assortment
Having a debit card can also be beneficial for you when it comes to managing your finances. But it will occur somewhat indirectly.
For example, whenever you buy something in-store or online, or take out some money from the ATM, the corresponding amount will be subtracted instantly from your bank account.
Following a successful transaction, immediate notifications will be sent to your designated mobile number and email address.
This alert helps you identify the variance between the credited amount and the balance left in the account. Understanding the discrepancy in values helps determine the amount to allocate for spending and saving for upcoming occasions.
Higher Level of Security
Debits are quite safe for two reasons. Firstly, you might use them for purchases directly, without having to offer the details of the same. And secondly, if it somehow gets stolen, you can contact your bank whenever you want to have it blocked.
Additionally, a security chip has been recently incorporated into debit cards, enhancing their protection against online theft and fraudulent actions.
Nonetheless, it is still up to the cardholder to handle the debit card with care.
Avoid Merchant Fees
Certain small enterprises, internet-based shops, and dining establishments may add an additional fee if you pay with a credit card but will not charge for using a debit card.
Rossman, a businessman, says he enjoys credit card rewards but is not willing to pay a 3% fee for only 1% or 2% cash back. “If the processing fee is waived for the debit card, it’d be the most preferable option,” that’s what he had to say in this matter.
Additionally, it could be beneficial to opt for a debit card over a credit card when making a purchase abroad if your credit card incurs foreign transaction fees. Before heading overseas, make sure to verify which fee is the least expensive.
Hey Guys! My name is Richard Andrew. I am a contributor to the Strategy Watch. I have finished my graduation with a major in Economics. My interest areas are Economics, Financial Analysis, Stock Analysis, and Business Strategy.