What Makes Debit Cards A Smart Banking Tool?

Plastic cards have replaced cash for decades now. This has also changed the banking system for many. Many do not rely on carrying heavy money to meet their daily purchases or payment needs. They need Debit or Credit Cards to withdraw or transfer funds from their Bank Account. The amount gets directly debited from the account. Owing to digitisation, its usage has become the new norm.  

Besides being a favourite, a Debit Card is also a practical way to transact. You need not go through the trouble of handling cash or fear losing them. A single card handles all your online and offline payment needs.

You can also link them with your Banking app or withdraw from an automated teller machine or ATM using the card. You can access innovative banking techniques when you have Debit Cards handy. Let us understand how it works smartly:

Swift transactions

With the card, you need not enter the bank credentials. Also, it requires minimal formalities to perform multiple transactions. Be it payments, transfers, equated monthly instalments, or withdrawals, every task is done instantly. If you use an ATM, you add the card and follow the on-screen instructions. As for automatic digital payments, link the card by entering its number and expiry date for single-click transactions.

Tracking

A significant portion of financial management is controlling your spending habits. This becomes challenging when you have no control over your expenses. You should have the plan to keep things in check. This is difficult with cash, as you need to track your payments manually. But you unlock trackability when you apply for Debit Card. This feature gives you access to transaction history, alerts, and bank statements.

Pre-paid payments

Unlike Credit Cards, debit directly happens through your Bank Account. This means you can access your funds electronically with the card. You need not borrow them to repay later. Hence, an online Debit Card is a prepaid fund source in your account. This enables you to bank with ease. You need not physically visit the branch to initiate transfers or receive funds.

Cashbacks & discounts

Banks incur lower overhead costs when you bank digitally. They save on staff payments, processing fees, administrative charges, etc. Hence, they reward you with discounts and cashback. This also sustains the competitive space as many banks have upgraded themselves online. Regardless of the motive, you can access perks during shopping, making payments, and settling bills through the Debit Card.

The contactless transaction has proven banking cards to be a boon in the industry. It saves your time and promotes convenience.