Remember when debit cards were so ‘un-cool?’ The change in the economy has forced many people to stop using their credit cards and so the debit card has become the payment method of choice.
There are times when it is better to use a debit card over cash or a check (although it is like paying with these). Here are some situations to keep in mind.
When You Need Instant Verification
The bad thing about using checks is that even though you might get a receipt, and the payment gets credited to your account or sale there is the longer clearing time that it takes behind the scenes. Where this might trip you up, is that if you do not have enough money to cover the payment, the check could bounce and you will have enormous fees that eat into your account. Your debit card transaction immediately checks to make sure you have the money to cover the transactions and some merchants even put a temporary hold on funds in insure that the money is there.
When You Need to Make an Internet Purchase
It is better to use a debit card for Internet Purchases than a bank draft transaction. By doing so, you are giving a merchant full access to your checking account when you supply the bank routing number and account number. If you are a victim of fraud it is better if it is with a debit card than your bank account because a debit card can be cancelled and a new one issued in its place. If your bank account has been hacked into, then you have no other choice but to close that account and open a new one and the headaches of doing that far outweigh using a debit card.
A valuable piece of advice for Internet purchases is to open an entirely separate checking account just for such transactions and use a debit card that is only on that account. Then, move only enough money into the account that you need to make your purchases. It works by insulating your other accounts from Internet transactions.
When Merchants No Longer Accept Checks
Many merchants are stopping the practice of accepting checks for payments. Debit cards, credit cards and cash are becoming the sole methods of accepting payments. And, since you might not be using your credit cards until you get them paid off and cash is not convenient, then a debit card makes the most sense to use for such transactions.
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