Debit cards - the lowdown

Debit cards have a number of useful benefits and are becoming increasingly popular throughout Australia. Read on for the lowdown on debit cards.

Debit cards
A debit card provides you with instant access to the money in your bank account. A debit card works in much the same way as a credit card but it is linked to your bank account. You can use your debit card just like you would a credit card. A debit card can be used to make cash withdrawals at ATMs or to make transactions. You can make transactions at retail outlets or stores, over the phone or online. Cardholders must verify their identity by signing a receipt or by entering their PIN number.

Advantages
Debit cards have a range of advantages. These include the following:

• the amount you can spend is limited to the amount you have in your account which means that you cannot spend more than you have. In this way a debit card encourages you to be more responsible with the way you use cards.
• debit cards have increased security in that you do not have to carry as much cash around with you.
• debit cards can be used globally meaning that it saves you the hassle of exchanging currency
• unlike credit cards there are no interest charges