Debit cards are a convenient way to pay for everyday purchases. They are also safer than carrying around cash or writing checks.
That’s because when you make a purchase with your debit card, you aren’t handing over your money. Instead, the money comes from your checking account, so it can’t be stolen or lost.
When you buy something with a debit card, you are essentially transferring money from your checking account to the vendor’s business account.
This article explains Why Debit Cards Are Better Than Cash and also why using a debit card is safer and more convenient than using cash for everyday purchases and how using one can also help you track spending and cut back on unnecessary spending as well.
How Debit Cards Work
A debit card is a payment card that lets you make purchases and withdraw cash from your bank account. It’s linked to your bank account, so when you make a purchase with your debit card, the money is automatically withdrawn from your account.
A debit card is different from a credit card, where you borrow money and then have to pay off the full amount at the end of the month. With a debit card, you spend the money that’s in your account.
If you lose your debit card or it is stolen, you can call your bank immediately and ask them to block the card. That way, the person who finds it can’t use it to take money out of your account.
You can also ask your bank for a new debit card with a new card number. If someone does manage to steal your debit card number, the most they can get is the amount of money in your bank account. For example, if you have $500 in your account, they can only use that to make purchases.
Tracking Your Spending With A Debit Card
Many people who use debit cards like the convenience of being able to track their spending. With a debit card, you can see exactly how much you’re spending.
You can check your account periodically and see the amount you’ve spent on various categories and determine if you’re spending too much or if your spending is within a budget.
Where many people fall short is not being diligent about tracking their spending. There are many ways to track your spending. You can keep a physical spreadsheet, an electronic spreadsheet, a paper notebook, a journal, a blog, a computer program, or any number of apps. The important thing is to have a system that works for you and that you use.
Safer Shopping With A Debit Card
There are a few ways in which using a debit card is safer than using cash. If you use a debit card for online shopping, you have extra protection against fraud. If a merchant accepts debit cards, they have to be covered by the same fraud prevention standards as credit cards.
This means that if someone tries to use your card fraudulently, you will not be held responsible for the charges. Using a debit card when shopping in person also provides added protection in the event that your card is lost or stolen.
While credit cards give you extra protection when a fraudulent charge is made, debit cards offer greater security in other ways. If you use your debit card to pay for something, and someone attempts to steal the money from your account, your bank will refund the money. Credit card companies, on the other hand, will not.
Why Debit Cards Are Better Than Cash
Using a debit card instead of cash is a safer way to pay for transactions. It’s easy to see why this is when you consider that cash can be lost, stolen, or forgotten about.
In fact, research shows that many people have forgotten about cash in their own homes, having left it sitting in places like coffee jars, drawers, or old coat pockets.
Using a debit card is safer because the money is not actually in your hands. It’s still in your bank account. Anyone who steals your cash will not be able to use it. But anyone who steals your information can use it to take money directly from your account.
A Final Safety Tip: Check Your Monthly Bank Statement
Keep an eye on your monthly bank statement to catch fraud early. If you see any unexpected charges or withdrawals, you can report them right away and the bank will investigate.
The sooner you report unauthorized charges, the better your chance of getting the money back. If a debit card transaction is flagged as unusual, it’s important to investigate. It could be a mistake, but it could also be a sign of fraud.
If the transaction is legitimate, your bank will let you know and put the money back in your account. If it’s a mistake, the bank will fix it. If the transaction looks suspicious, you need to act as soon as possible.
Track Your Spending With a Credit Card Instead
If you use a debit card to track your spending, you’re spending money that’s already in your account. If you use a credit card to track your spending, you’re spending money that you’ve borrowed.
This means that you’re increasing the amount of debt that you owe. For many people, credit cards are best used as a way to track spending.
If you use credit cards to track your spending and pay them off every month, you’re getting the best of both worlds. You’re still tracking your spending in a way that’s easy and convenient, but you’re also reducing your debt.
Debit cards are an easy and convenient way to track your spending and pay for everyday purchases. Using a debit card is safer than using cash because the money is automatically withdrawn from your account, so it can’t be stolen.
If you lose your debit card or have it stolen, you can call your bank and ask them to block the card. That way, the person who finds your card can’t use it to take money out of your account.
If someone attempts to make a fraudulent purchase with your debit card, your bank will refund the money. You should also check your monthly bank statement to catch fraud early. Using a debit card is safer than using cash because the money is automatically withdrawn from your account.