Advantages and Disadvantages of Debit Card

A debit card is a plastic card that resembles credit card. Debit cards are directly linked to a cardholder’s bank account. Whenever a card holder withdraws money from an ATM or uses the debit card for making payments, his/her account balance is automatically reduced.

Here are few  of the advantages of debit card:

1. Debit card is much easier to get as compared to credit card.

2. One doesn’t have to carry cash or cheque book or traveler’s cheques and carry only debit card.

3. Debit cards are more willingly accepted than cheque, it happens more so when people are traveling because with debit cards the person who is taking it does not have to worry about bounced cheques and hence it is preferred over cheques.

4. With debit cards one knows that for how much limit one can purchase unlike credit cards where chances of overspending are higher.

However there also few disadvantages of debit card:

1. One needs to have enough money in his or her bank account to cover for the amount of purchase done.

2. One has less protection if the debit card is lost or stolen as compare to credit card.

3. Since money is debited instantly at the time of purchase, one has less protection if something goes wrong with the purchase because bank won’t put money back into account if purchased items are not delivered, or don’t work.

0 comments… add one

Leave a Comment


Related pages


what is factoring in bankingadvantages and disadvantages of electronic fund transferbill of discountingrrbs bankwhat is privatization and commercializationwhat are the different types of dividend policiesprocess costing advantages and disadvantagesconglomerate combinationparticipants in derivative marketdifference between overdraft and term loanthe downside of globalizationcontingent liability examplesadvantages of pricing strategiesadvantage of lifowhat is the meaning of traditional economyindirect currency quoteprepayments journal entryprepaid insurance journal entry adjustmentswhen to use autocratic leadershipadvantages and disadvantages of profitability ratiostypes of bank guaranteesskimming pricing strategyjournal entry for prepaymentexample of a conglomerate mergerdeferred revenue expenditure accounting treatmentaccounting treatment of contingent liabilitiesdifferent kinds of factoringwhat are different types of chequesrelevant cost managerial accountingadvantages of merger and acquisitionwhat is cost concept in accountingadvantages and disadvantages of m&adisadvantages of bills of exchangewhat is cash inflowsfdi advantages and disadvantagesmarket skimming pricing examplespassed adjusting journal entrywhat are derivative marketsurbanisation wikidefine inferior goods in economicsadvantages and disadvantages of economic globalizationplanned economic system advantages and disadvantagesfictitious assets examples wikipediawhat is rate sensitive assetsforeign exchange quotationdifference between shares and debenturesdisadvantages sales promotiondisadvantages of sales promotionbank loan advantages and disadvantagesdefine mixed economy in economicsrapid skimming strategy examplesadvantages and disadvantages of hedge fundsadvantages and disadvantages of capital budgeting techniquesskimming and penetrationadvantages of urbanisationblue ocean vs red ocean strategyfeatures of perfect competition and monopolydistinguish between cost accounting and management accountingexplicit vs implicit costsppf account benefitsthe main features of a capitalistic economic system arecompanies that are monopolistic competitionfeatures of a perfectly competitive marketfullform of cfadistinguish between joint venture and partnershipauthocratic leadershipwhat is a horizontal monopolywhat is current liabilities with examplesmonopolistic competition definition economicsbartering systemmeaning of current liabilitiesexamples of income effectdecentralisation advantages and disadvantageswhat is a derivative marketpositives of urbanisationexamples of price skimming productsfull form of tallyexamples current liabilities