Despite the fact that debit cards are commonly used, many people are unaware of their benefits and drawbacks. Debit cards resemble credit cards but operate similarly to cash or personal checks. So here this article gives the advantages and disadvantages of a debit card to better understand this topic.
Pros or Advantages of debit card:
- A consumer who is not creditworthy and finds it difficult or impossible to obtain a credit card can more easily obtain a debit card.
- A debit card’s use is restricted to the funds in the account to which it is attached.
- It is easy to use.
- Some consumer protection.
- A debit card may be used to obtain cash from an ATM or a PIN-based transaction at which there is no extra charge other than a foreign ATM fee.
Cons or Disadvantages of Debit cards:
- Require recordkeeping.
- Can have fees and penalties.
- If you have lost the card and have not somehow registered it, you likely lose the money.
- Identity theft.
- May lead to higher spending.
- Some company’s payment systems do not appear to accept prepaid debit cards.
- If a provider has some technical issues, the money might not be accessible when you need it.
- If the card provides offer insecure website for letting you check the balance of the card, this could give an attacker access to the card information.
- Disputed charges can be more difficult to resolve.
- You don’t improve your credit score.
- It gives you lower levels of fraud protection.
Explore more information:
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