Over the years, the humble debit card has always been compared to credit cards. While both debit and credit cards may look the same, there are fundamental differences between the two. That being said, a better comparison would be between a debit card and cash.
A debit card is essentially a convenient way of making daily purchases as it frees you from carrying too much cash around with you. Unfortunately, many still assume that a debit card is nothing more than an ATM card – but there’s more to the humble debit card than you might think.
Here are a few common misconceptions about debit cards that you should stop believing in.
#1 Debit cards can only be used to withdraw money
Yes, a debit card can be used to withdraw money from an ATM but that’s not its only use! In fact, all Malaysian issued debit cards come with MyDebit and either Visa or MasterCard, which can be used to make everyday payments.
A debit card is linked to either a current or savings account. So whenever a purchase is made, the amount is deducted from that account. Whether it’s paying for a cup of coffee at the local cafe or shopping at your favourite store or even paying your bills, a debit card can do it all with no interest charges.
Moreover, your Malaysian issued debit card can also perform contactless transactions; therefore allowing you to carry out cashless and contactless purchases.
Not only can you spend with your debit card, you can also keep up with your transactions and track your spending habits to avoid unnecessary purchases to stay within your budget by setting up a purchasing limit.
#2 Debit cards don’t have any rewards
Simply not true. There are many regular bank campaigns that offer exclusive rewards for both debit and credit cardholders. By spending or dining at selected stores and restaurants, you can enjoy cashback, rebates, discounts, or even complimentary gifts and services.
To enjoy these privileges, it’s best to check the bank’s website to keep up with the latest promotions that you won’t be able to take advantage of if you paid with cash.
#3 Debit cards are not secure
Again, not true. Like credit cards, debit cards do come with the latest security features such as a secure chip to prevent counterfeiting and fraud protection.
The contactless transaction feature on your debit card has a standard purchasing limit of RM250 – spending more than that requires you to enter your PIN. These limits can easily be customised depending on your spending habits.
You can also request for transaction alerts to be sent to your registered phone number to notify you whenever a transaction is made with your card. That way, you can alert the bank instantly to freeze your card and block any unauthorised transactions.
By understanding the truth about debit cards, you can use it as a convenient financial management tool to make everyday purchases, track spending, enjoy rewards, and of course, withdraw money from the ATM. For more information on debit cards, head to Pay With Debit’s website!