Advantages of debit cards- Obtaining
a debit
card is often easier than getting a credit card. If
you qualify to open
a bank account, you can usually get a debit card.
- Unlike
when you
write a check, using a debit card saves you from having
to show identification
or give out personal information at the time of the transaction.
- It
frees you from
carrying cash or a checkbook.
- It
can save you
from having to stock up on traveler's checks or
cash when you travel.
- Debit
cards may
be more readily accepted than checks, especially in
other states or
countries.
- If
you return
merchandise or cancel services paid for with a debit
card, the transaction
will be treated as if it were made with cash or a check.
Customers usually
get cash back for on-line purchases; for off-line transactions,
the
amount is credited to your account.
- Most
ATMs will
allow you to get a cash advance against the line of
credit on your credit
card, using your credit card and a separate PIN. You
do not necessarily
have to have a bank account to do this.
Disadvantages
of
debit cards - Unlike
a credit
card, debit card transactions give you no grace period.
They are a quick,
pay-now deal.
- They
can make
balancing your account tricky if you are not fastidious
about keeping
receipts and recording transactions in a timely fashion.
It is easy
to forget, for example, when you pay at the gas pump
with a debit card
and drive off without your receipt.
- Using
a debit
card may mean you have less protection than you would
with a credit
card for goods that are never delivered, are defective
or were misrepresented.
But, as with credit cards, you can dispute unauthorized
charges or other
mistakes within 60 days. Contact your bank if a problem
with a merchant
cannot be resolved.
- Fees
-- The convenience
can be costly, especially when using an ATM that is
not affiliated with
your bank.
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