5 Debit Card Benefits You Might Not Know

Do you know that debit cards are a basic way to make payments? Most people swipe or tap their cards daily without realizing the extra perks they could get. While credit cards often get all the attention for rewards and security, debit cards offer advantages many overlook.

From cashback to fraud protection, debit card benefits add more than the mere spending of cash. If you use your debit card for simple transactions, you might miss out on some essential features. So, let us reveal a few unexplored debit card benefits and ways to gain from them.

Most people think that credit cards only come with cashback reward options, but banks have also created cashback reward options for debit cards. Today, people can earn cash back on their purchases made on a debit card without worrying about interest rates and debt.

Many banks give a small percentage of cash back when a customer swipes the debit card at a specific retailer or for certain items, such as groceries, dining, or gas usage. Some even offer rotating categories through which consumers can earn more cashback during certain months.

• Check with your bank to see if your debit card offers cashback rewards.

• Use your debit card instead of cash for eligible purchases.

• Please pay attention to rotating offers, as they may change frequently.

This is one of the easiest debit card benefits to take advantage of, and it requires no extra effort on your part

One well-known reason debit cards are a perfect option is that one spends only the amount one possesses, not even a penny more. While credit cards allow borrowing money and accumulating liabilities compared to debit cards, spending is pretty restricted with debit cards.

If you're trying to stick with a budget, your debit card can help you control impulse purchases. Every transaction is deducted straight from your bank account, letting you know where your money goes.

• Set up account alerts to track your spending in real time.

• Use a separate debit card for non-essential expenses like dining and entertainment.

• Link your debit card to a budgeting app to analyze spending habits.

Following these debit card tips allows you to manage your finances more effectively without worrying about accumulating debt.

The most common belief is that credit cards are superior to debit cards in fraud protection. This is not true much of the time, however. Most banks offer zero liability protection, meaning you will not be liable for unauthorized transactions if you report them quickly.

However, there's one key difference: wear fraudulent charges on a credit card, whereby they'll usually be blocked before they touch your pocketbook; you first lose money with a debit card and have to dispute it with your bank to get it back.

• Enable transaction alerts to spot unauthorized charges immediately.

• Use your debit card only on trusted websites and secure payment terminals.

• Report lost or stolen cards as soon as possible.

These debit card tips can help you enjoy the convenience of card payments while keeping your finances secure.

If you travel frequently, you might assume that credit cards offer the best perks. However, some debit cards also provide helpful travel benefits. Depending on your bank, you might get:

• Fee-free international ATM withdrawals at partner banks.

• Lower or no foreign transaction fees on purchases made abroad.

• Basic travel insurance for trip cancellations, lost luggage, or medical emergencies.

• Choose a debit card with low or no international fees.

• Notify your bank before travelling to prevent card blocks.

• Use ATMs from partner banks to avoid additional withdrawal fees.

If you prefer not to rely on credit cards while travelling, a debit card with travel benefits can be a great alternative.

Security is a significant consideration in this modern age, so many debit cards have several added protections, like contactless payment features or even virtual debit cards.

Tap-to-pay means you can make the transaction without touching your card during insertion or swipe entry, reducing the chance of skimming cards. Another feature offered by most banks involves getting yourself a virtual debit card, which provides a variable number for online purchases, thus hiding the top-secret information about your actual card.

• Check if your bank offers virtual debit cards for online purchases.

• Use contactless payments whenever possible for faster, more secure transactions.

• Avoid swiping your card at unfamiliar locations—tap or use chip payments instead.

These debit card benefits make your transactions faster and more secure.

With all these debt benefits of debit cards, it is no wonder that many individuals are opting for debit cards rather than credit cards. Credit cards will have their place, but debit cards offer a much safer and debt-free way to manage money without sacrificing rewards and perks.

• There is no risk of interest charges—you're only spending what's in your account.

• Built-in security features to protect against fraud.

• More control over your spending, making it easier to stick to a budget.

If you’re looking for a way to simplify your finances while still enjoying rewards, debit cards are worth considering.

Unlike a payment tool, the debit card is a treasure trove of features that help one save money and enhance financial security. Cashback rewards, fraud protection, and sound budgeting tricks are benefits that a debit card can maximize.

If you are not already using these perks, now's the time to start! Check with your bank to know the features available on your debit card, and start using it strategically. A few slight modifications to using a debit card may significantly enhance your financial health.