5 Things You Probably Didn’t Know About Your Debit Card

Last Updated on 2021-11-27 , 10:43 am

If you’re reading this, you probably have a debit card. I mean, who doesn’t?

But do you really know what a debit card is all about? Besides buying Tao Bao stuff and movie tickets.

What if there’s actually more to your cards than you think?

Here are 5 things you probably didn’t know about your debit card.

1. Using debit card for transactions is more dangerous than credit card

We all love shopping online.

It’s so convenient and you can shop from literally everywhere and anywhere.

But did you know that using your debit card to pay for the transaction is more dangerous than a credit card?

Unlike credit cards, debit cards do not have as much fraud protection and your debit card information can be compromised.

Worst case scenario, all your savings in that account could be wiped out overnight and it can be pretty hard waiting for the money to be credited back by the bank.

2. Debit cards can quickly generate hundreds of dollars in fees

You may not know that debit cards generate fees, do you? One of the biggest fees is usually an overdraft fee whereby the bank charges debit cardholders to cover purchases when they do not have sufficient cash.

Therefore, before you use your debit card make sure there is ample balance for that transaction to process or you could be charged an overdraft fee.

3. Use your card regularly

Your debit card may not work if you diverge from your normal using pattern.


Because the bank will actually cut off a card if they see an unusual usage of your card. Sometimes even when you are using it overseas.

This has its pros and cons, it’s definitely inconvenient when you need to pay for something.

But think of it this way, that’s your bank trying to protect you.

4. Debit cards do not help you build credit

So for those of you who don’t know what are credits and what it is for.

Let me give you a rough explanation.

Building credits or what some banks call a loyalty program is whereby when you use the credit card to purchase items, you are rewarded with points/credits.

You can redeem those credits for cash. Sometimes, it can even help you get a bank loan to buy a house or open business.

So if you don’t have a credit card as of yet, maybe it is time to get one.

But remember, don’t anyhow use your credit card because it simply means you’re in debt and has a bad credit history.

5. If there is a dispute, you may not get back your money

Dispute? What dispute?

Well, in banking terms, dispute refers to when there are issues with your purchased good and/or services.

Be it an error in transaction or fraud, etc.

If you use a debit card, you may not be able to get your money back, ever!

Reason being, the money was immediately deducted from your account already.

This is another good reason to go for the option of paying with credit instead so your money is protected.

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