Debit card:
A debit card is a bankcard that allows depositors to pay third parties directly from their bank
account balances electronically. A debit card is a bankcard that allows depositors to pay third
parties directly from their bank account balances electronically.
Advantage
1.Any consumer who is not credit worthy or finds it difficult to obtain a credit card can more
easily apply a debit card, allowing to make plastic transactions.
2.The debit card user can use the limited amount available in his account, thereby preventing the
user from racking up debt as a result of its use. Such cards do not charge any interest, late fees,
or fees exclusive to credit cards.
3.Debit cards removes the hassles associated with having writing checks as payments like
showing ID or give out personal information at the time of the transaction.
4.Besides avoiding check writing altogether, check cards debits funds from the user’s account on
the spot. This in turn finalizes the transaction at the time of purchase and unlike a credit card
doesn’t require paying any bill at a later date. Moreover a debit card doesn’t require writing an
insecure check containing the holder’s personal information.
5.Unlike credit cards, debit cards don’t charge any higher fees or interest rates when cash
advanced is obtained. A debit card user can obtain cash from an ATM or a PIN based transaction
at no any extra charge, other than a foreign ATM fee.
Disadvantages
1.Unlike credit cards, debit cards don’t provide its users with any grace period. They are quick
and pay now deal.
2.Debit cards provide lower levels of security protection than credit cards. Theft of the users PIN
using skimming devices is much easier than with a signature-based credit transaction. If your
wallet is lost or stolen, the thief will likely have all the information they need to use your debit
card for internet transactions.
3.Debit cards have pre-set spending limits. One can spend only with the amount available in
A debit card is a bankcard that allows depositors to pay third parties directly from their bank
account balances electronically. A debit card is a bankcard that allows depositors to pay third
parties directly from their bank account balances electronically.
Advantage
1.Any consumer who is not credit worthy or finds it difficult to obtain a credit card can more
easily apply a debit card, allowing to make plastic transactions.
2.The debit card user can use the limited amount available in his account, thereby preventing the
user from racking up debt as a result of its use. Such cards do not charge any interest, late fees,
or fees exclusive to credit cards.
3.Debit cards removes the hassles associated with having writing checks as payments like
showing ID or give out personal information at the time of the transaction.
4.Besides avoiding check writing altogether, check cards debits funds from the user’s account on
the spot. This in turn finalizes the transaction at the time of purchase and unlike a credit card
doesn’t require paying any bill at a later date. Moreover a debit card doesn’t require writing an
insecure check containing the holder’s personal information.
5.Unlike credit cards, debit cards don’t charge any higher fees or interest rates when cash
advanced is obtained. A debit card user can obtain cash from an ATM or a PIN based transaction
at no any extra charge, other than a foreign ATM fee.
Disadvantages
1.Unlike credit cards, debit cards don’t provide its users with any grace period. They are quick
and pay now deal.
2.Debit cards provide lower levels of security protection than credit cards. Theft of the users PIN
using skimming devices is much easier than with a signature-based credit transaction. If your
wallet is lost or stolen, the thief will likely have all the information they need to use your debit
card for internet transactions.
3.Debit cards have pre-set spending limits. One can spend only with the amount available in
