There are many reasons why consumers use debit cards. While we won't list all the reasons, we'll highlight three popular reasons ( which is probably impossible) that contribute to debit card usage.
Don't Have To Take Out Loan
Debit cards draw directly and immediately from your bank account. This is unlike a credit card, which is a short-term loan. You borrow from a credit card company when you use a credit card. While this loan is interest-free for a few days, forgetting to pay the loan on time can result in being charged interest and late fees. Additionally, interest rates on credit cards can be very high, with many over 20%.
For those who don't care to owe anyone money or don't want to keep track of making payments to someone, debit cards are the way to go.
Security
Debit and credit cards both have high-security features. However, a debit card requires a PIN (unless used as a credit card). This is an added layer of security. Someone can't just steal your debit card and go on a spending spree. If that were to happen with your credit card, there's a good chance that you'd get reimbursed. However, consider how time-consuming the mess would be to clean up. With a debit card and PIN, you don't have to worry about going down that road in the first place.
Avoid Surcharges
Some merchants charge a credit card surcharge to reimburse them for the fees charged by credit card processing companies. For those looking to earn points on their credit cards, these surcharges nab those points and then some. Debit card processors also charge merchants a fee, but they are much smaller than credit card fees.
The higher fees are due to the loan nature of credit cards. The payment processor is taking a risk by paying the merchant before receiving funds from the consumer. A PIN-enabled debit card transaction bypasses this risk since funds are transferred immediately.
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