Debit cards are a type of cash card that enables the holder to access their account in order to pay for goods and services. Unlike credit cards, debit cards only allow holders to spend the money that is present in their account at the moment of purchase.
Why use debit cards
There are a number of benefits for customers who use debit cards to make payments for goods and services as well as for companies that offer debit card facilities as an option for making payments. The main advantages for a business offering debit card payment processing to their customers include the following;
- Instant Processing – debit cards require an online payment transaction thus the payment is made immediately from the customer’s account into the merchant’s account.
- Global – the online payment solution allows customers across the world are able to make transactions for goods and services.
- Set up fee – after the initial set-up cost, the company is liable to pay minimal fee on the rest of the transactions.
- 24/7 – as debit cards are an online payment solution, customers have access to purchasing their goods and services 24 hours a day, 7 days a week.
- Safe – due to additional steps that companies such as Visa and MasterCard have introduced, online payment transactions have become less liable to fraud and hacking.
Additionally, customers using debit cards as a payment solution benefit from this option as well. Some of the advantages for the customers include the following;
- Accessibility – debit cards are widely accepted across a range of online and offline merchants.
- Limited – debit cards allow customers to only access the money that is available in their account at the time of purchase. Thus if the card holder is making a payment for an amount that is greater than the amount of money present in the account, it will not be processed. Therefore debit cards enable customers to control their spending.
- Secure – there is no need to carry around large amounts of cash.
- Interest – financial institutions do not charge interest on debit cards as the money that customers spend is their own thus does not need to be returned to the bank.