These days, money’s all about buying, selling, saving, and investing. People seek quick ways to achieve their financial goals and different options for making purchases. Debit cards are a key payment method, and they’re a staple in our society.
Most people have one, but do you know what yours is capable of? In this article, we’ll discuss the different features that they offer and how you can take advantage of them.
You Can Use It To Send Money Online
You can use a debit card to do this through various money transfer services. These include PayPal, Venmo, Cash App, and more.
You can also use a debit card to send money through a peer-to-peer payment service like Zelle. To send money using a debit card, you’ll need to provide
its expiry date, 16-digit number, and security number.
You may also need to use your sort code and account number, plus your IBAN and BIC details for international transfers.
Once you’ve entered this information, review and confirm the transaction. When it’s approved, the funds will be transferred from your account to the recipient’s account.
If you want to know how to send money online with a debit card, there are money transfer platforms featured on certain company websites.
You can also use Google Play or the App Store to download their mobile apps.
In these scenarios, you can use a smartphone or laptop for your transactions and enjoy zero transfer fees.
You Can Use It For Daily Transactions And Track Your Spending
A debit card can be used for a variety of everyday financial activities, such as making purchases at stores or online, paying bills, and getting cash from an ATM.
You can either use the physical card by swiping it or inserting it into a card reader, or you can use your mobile phone to make a contactless payment.
Most debit cards come with built-in features that can help you track your spending.
For example, many banks offer online or mobile banking apps that show you all of your recent transactions.
You can also set up notifications so that you get an alert every time you make a purchase.
This can help you stay on top of your shopping and avoid buying too much.
If you’re trying to stick to a budget, using a debit card with these features can help you stay on course.
It Can Outperform Credit Cards
A credit card entails borrowing money from a lending institution like a bank or financial company.
The money is given to the cardholder with the understanding that it’ll be paid back over time, plus interest and fees.
Your debit card, on the other hand, is directly connected to your checking account.
When you use it, the funds are transferred immediately from your account to the merchant’s account. In this way, you can never spend more money than you currently have in your account.
There are several advantages of using a debit card over a credit card.
One is that there’s no risk of accumulating debt because you can only spend what’s currently available.
Another advantage is that you avoid paying interest and fees, which can add up quickly with a credit card.
Finally, debit cards can better help you keep track of your spending (as just discussed).
It Can Be Connected To Reward Programs And Discounts
One way this can occur is through your bank’s online portal. You may be able to link your card to certain discounts or cash-back offers by signing into your account and going to the rewards section.
Another method involves using a specific app that connects directly to your debit card. Once you’ve linked them, you’ll be able to see all the available offers in one place.
Some examples of apps include Ibotta, Checkout 51, and SavingStar.
By taking advantage of cash-back offers and discounts, you can save a significant amount of money on your everyday purchases.
It Can Protect Your Money
When you use a debit card, the bank puts a hold on the funds in your account until the transaction clears.
This way, if someone manages to get ahold of your card information and make unauthorized purchases, you won’t be held responsible for those charges.
Additionally, most banks offer some form of fraud protection for debit cards. If your card is ever lost or stolen, you can rest assured knowing that you’re not liable for any fraudulent charges.
Having said that, check your bank statements regularly and report any suspicious activity immediately. By doing so, you can help prevent identity theft and keep your hard-earned money safe.
It Can Help You Build Good Credit
Having good credit can help you get approved for loans, access lower interest rates, and get better terms on financial products. It can also lead to increased opportunities and security in your life.
There are a few ways that using a debit card responsibly can help you build good credit.
First, regularly keep track of your balance and avoid overdrafts because this can damage your credit score.
Second, use your card to make regular purchases and pay off the balance in full each month.
This will show lenders that you’re capable of managing debt responsibly, and it’ll improve your chances of getting approved for future loans or lines of credit.
Finally, don’t be afraid to use your debit card for larger purchases. Making on-time payments on a big purchase can help boost your credit score.
If you’re not sure where to start, talk to your bank or financial advisor about how you can use your card to build good credit.
You can also use debit cards to set up direct deposit for your paycheck or government benefits and set up automatic payments for recurring bills.
As you can see, there are a host of different things you can use your card for, plus a wide range of benefits.
When used wisely, your debit card can become an invaluable financial tool that serves you both now and for many years to come.