Now You Can Spell Convenience With A Debit Card

Shopping isn’t as complicated nowadays. Aside from the rise of Internet shopping, people also enjoy the conveniences of using plastic money. Today, you can easily shop around with the use of plastic money.

Debit card versus credit card

The current trend of paying for purchases debunks the traditional cheques and cold cash. Cheque books are quite bulky to bring around especially when you’re on the move. Cash, on the other hand, poses an obvious risk. With numerous news of criminal acts reported almost every single day, it’s not very advisable to bring too much cash with you everywhere you go.

Enter the rise of plastic money, also known as, debit card and credit card. The former works like an ordinary ATM card. You deposit money into your bank account and use it for shopping. They are swiped at a similar card terminal, and sometimes, account holders are required to key in their PIN to validate their purchases.

On the other hand, credit cards are still generally “swipe and sign”. After swiping, you just need to sign the receipts to facilitate payment.

The rising numbers of credit users getting into financial problems made debiting a good alternative. It will only allow purchases amounting to the amount you have in your bank account. It also provides you a nagging reminder that swiping your card means tapping into your hard-earned savings.

What debit cards have to offer?

Mobile savings account

It works like your on-the-go savings account. It enables you to deposit and withdraw money over-the-counter or via the ATM. The only downside is that you have to pay a minimal fee if you’re using a machine other than your bank’s machine.

Interest-earning

Unlike credit cards where purchases are sometimes subjected to interest rates, they actually allow account holders to earn money through interest. While some may argue that the interest is just a small amount, it can still come up to a sizable amount over the long term. The greater the amount of your deposit, the higher the amount of interest you get from the bank.

No annual fees, finance charges, late payment, and penalties

Many credit cards charge an annual fee, which is sometimes waived in the first year to entice consumers. Aside from this, there are also finance charges. Once a cardholder fails to pay the minimum amount for the month, he or she will have to incur penalties and charges, along with interest. On the other hand, with a debit card, the cardholder incurs no such fees.

No monthly burden

Occasionally, you might find yourself in a position where you cannot meet the monthly card repayments while debiting free you from such responsibilities as you can only use money that you already have. Without credits, there is no chance of you accumulating debts.

Thinking of getting a card yourself? Why not compare which debit card or credit card Malaysia that best suit your needs and preferences?