Debit Card: Definition, Benefits, and How to Use It

Everyone wants convenience in every transaction they make. The simpler steps tend to be preferred by people because it will be very inconvenient to carry large amounts of money to make large transactions.

Well, the solution is to use a debit card. Surely you are familiar with the term debit card. But for more details, see the full explanation about debit cards below.

What is a Debit Card

A debit card is a method of payment instrument or a means of withdrawing money at a predetermined bank or ATM. With the convenience of having a debit card, you don’t have to carry cash wherever you go.

Because with the use of this debit card, you can pay for even large transactions. The many benefits of this debit card make everyone prefer to use a debit card as a means of payment transactions that are safe, efficient, and effective.

Similar to credit cards, debit cards have their own types according to your needs. Usually, each bank has a different type. However, the order is generally the type of silver, gold, and platinum debit card.

Each stage has its own limit. The higher the stages of the debit card you use, the higher the money limit and the transactions you can do with the debit card according to the card limit.

Debit cards make it easy for you to make transactions without cash. If this is your first time using a debit card or you’ve never used it before, there are a few things you need to know, as explained below.

Benefits and Disadvantages of a Debit Card

The Following are the advantages of using a debit card, including:

• 1. Shopping becomes more practical by simply swiping the card into the EDC machine available in various supermarkets, shops, restaurants, and various other places where EDC machines are available.
• 2. Can make transactions in large quantities as long as the balance is adequate.
• 3. The money is not a loan from a bank.
• 4. Has convenient facilities such as buying electricity, credit, to the convenience of transferring money.
• 5. Money can be withdrawn at the ATM machine provided if you need cash.
• 6. Administration costs are not too high.
• 7. Many attractive promos and discount programs using debit cards with certain banks.
• 8. Like moving savings for you.
• 9. Make it easy for you to shop online.

The following are the disadvantages of using a debit card, namely:

• 1. Cannot make transactions that exceed the balance in the account.
• 2. Vulnerable to criminal acts such as a card being stolen, lost, or your pin code being discovered by someone.
• 3. Minimal promos, compared to credit card users.
• 4. For some banks, ATMs are not widely spread in various places, which makes it difficult for users to withdraw their money.

How to Use a Debit Card

1. Keep your Pin secret
2. When you receive a debit card, you will receive a PIN number of six digits.
3. Next, set your pin number according to your wishes. It is recommended that you are easy to remember because the pin number is very important and must be kept confidential from others to prevent fraud or break-ins. Once you have a PIN, you can make transactions using a debit card. And you can pay for all transactions that can be paid using a debit card.
4. When the payment is complete, your savings balance will automatically decrease according to the nominal transaction paid. And if you shop online, then you can choose the debit card method as the payment method. You do this by registering your debit card in an e-commerce account, and if it is registered, then you can make online transactions using a debit card.
5. Make sure your balance is sufficient to make transactions, and if necessary, save your payment receipt as proof of transaction payment for your financial records.

How to Maintain Debit Card Security

1. Block immediately if the debit card is lost.
2. Use an ATM machine that is in a safe location. For example, visit an atm machine at a branch office.
3. Check the ATM machine’s hole before inserting the ATM card.
4. Cover it by hand when entering the PIN code at the ATM machine.
5. Do not tell anyone your ATM PIN number.
6. Don’t share debit card photos on social media.
7. Don’t take selfies using a debit card.
8. Check your savings account regularly in mobile banking or internet banking.
9. Keep proof of transactions for transactions with debit cards.

Thus complete information about debit cards. Hopefully, the information about this debit card can be useful for you.