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May 15, 2017 | money-management

The Debit Card Advantage

There has never been a better time to make use of a debit card! Online and mobile banking have made the process of tracking your account quite frictionless while also making it far less likely that you will spend yourself into an overdraft situation. Many of the benefits associated with credit cards are also now available to debit card holders as well. There are many sound reasons to make a debit card your go-to method of payment.

Let’s take a look:

No Interest Rate: The number-one reason to use your debit card is that it draws from funds you already have on hand. You won’t get a bill at the end of the month and you will never have to pay any interest on those purchases.

Budgeting Tool: If you’re on a self-imposed budget, it’s an advantage to be spending money you already have rather than money you have to borrow in the form of a credit card purchase. Your bank balance places an automatic limit on your spending and keeps you within your means.

Time Saving: Making a purchase with your PIN means there is no need to sign for that purchase. When using your PIN at a grocery or retail store such as Walmart or Target, you can get cash back, saving you a trip to the ATM.

Security: It’s like paying cash without having to carry around a wad of cash. If you lose your cash, it’s gone forever. If you lose your debit card, your bank or credit union will replace it for you.. You will be reassured to know that Amplify Credit Union monitors for any unusual activity on your card and will notify you and/or stop the transaction if we believe the transaction to be fraudulent.

Zero-Liability Protection: Mastercard, for one, does not hold the debit card user responsible for unauthorized purchases. That includes when it is used in stores, online, or via telephone purchases.

No Approval Needed: Unlike with credit cards, there is no approval process required for becoming a debit card holder. Your bank or credit union will give you one when you open a checking account. With the debit card, you will have access to your savings and checking account. Amplify is unique in that we will give you a debit card on your savings account – even if you don’t have a checking account.

A Quick Cash Resource: If you do find yourself in a situation that requires cash, a debit card is the easiest way to get cash quickly. No matter what hour of the day, an ATM will give you access to your bank account. You can also get cash back with purchases at most stores. Using a credit card for this same purpose can sometimes lead to extra charges and, of course, interest payments if the cash advance is not repaid in full in a timely fashion.

Extended Warranties: In the past, one had to use a credit card to get extended warranty protection above and beyond that offered by the manufacturer or retailer. Not so anymore! Now this same service can be available through your debit card.

Price Protection: Price protection coverage is no longer just for credit cards. Now debit cards offer it, too. So, if you buy something with your debit card and the retailer drops the price over the next month or so (time windows vary, check your debit card carrier’s policy), you will be refunded the difference.

Satisfaction Guarantees: They’re not just for credit cards anymore. If you are not satisfied with a purchase and the retailer or manufacturer will not give you your money back, you may be eligible for a refund from your debit card provider.

Debit cards have made our lives much easier and the low-risk/high-security features help you with your comfort level for daily use. Unless you pay your credit card off every month, you are better off using your debit card, which only allows you to spend what you have in the bank.

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