|
Pros and cons of debit cards
Pros
- Obtaining a debit card is often easier than getting
a credit card. If you qualify to open a bank account, you can
usually get a debit card.
- Unlike when you write a check, using a debit card
saves you from having to show identification or give out personal
information at the time of the transaction.
- It frees you from carrying cash or a checkbook.
- It can save you from having to stock up on traveler's
checks or cash when you travel.
- Debit cards may be more readily accepted than checks,
especially in other states or countries.
- If you return merchandise or cancel services paid
for with a debit card, the transaction will be treated as if it
were made with cash or a check. Check the store's return policy
for debit card transactions.
Cons
- Unlike a credit card, debit card transactions give
you no grace period. They are a quick, pay-now deal.
- They can make balancing your account tricky if
you are not fastidious about keeping receipts and recording transactions
in a timely fashion. It is easy to forget, for example, when you
pay at the gas pump with a debit card and drive off without your
receipt.
- Using a debit card may mean you have less protection
than you would with a credit card for goods that are never delivered,
are defective or were misrepresented. But, as with credit cards,
you can dispute unauthorized charges or other mistakes within
60 days. Contact your bank if a problem with a merchant cannot
be resolved.
- Fees -- The convenience can be costly, especially
when using an ATM that is not affiliated with your bank.
|
