When you open a checking account, you’ll likely receive something basic yet brilliant – a debit card. But what makes this little piece of plastic so special?
With fewer retailers accepting checks, more businesses using digital payments and credit card debt going up nationwide, you might be thinking about getting a debit card. First off, trust that instinct! Secondly, we’ll help break down the benefits for you, piece by piece.
5 Debit Card Benefits:
Convenience
Debit cards are really convenient. They’re accepted almost everywhere, so you can use them to pay for almost anything – in stores, online and even to pay bills. Just swipe, insert or tap to pay. Plus, you don’t have to carry a lot of cash or count coins!
ATMs
However, if you do need cash, debit cards make it easy to withdraw from ATMs. And if you use machines in your bank’s network, there are usually low-to-no fees. With Gate City Bank, for example, you can enjoy free access to in-network ATMs worldwide. Also, if you’re a personal checking customer, you can receive up to $250 in automatic fee refunds at out-of-network ATMs each year!
Security
Debit cards also offer strong security features. For example, when used with a mobile wallet, they allow you to conveniently and securely store your payment information on your phone, tablet or smartwatch. Mobile wallets not only encrypt your information and use a process called “tokenization” to hide your card number, but they also often require a fingerprint, face recognition or PIN to pay.
Also, if you lose your debit card or notice strange charges, you can report it to your bank. They’ll cancel your card and send you a new one. Many debit cards also come with fraud monitoring 24/7, so your bank can send you texts, alerts or calls to keep you updated!
Choose a bank that offers easy debit card controls. You should be able to monitor activity around the clock, set spending limits and freeze your card if it gets lost or stolen.
Easy rewards
Good money habits
Unlike credit cards (and checks, for that matter), many debit cards only let you spend money that you already have, taking funds directly from your account in real time. This can promote healthy money habits because it motivates you to track your spending and balance, so you can avoid overdrafts and mind your budget.
However, it’s worth noting that some debit cards do allow you to overdraft your account, with the bank providing the funds so you’re not left stranded if you need things like an emergency fill-up or groceries. While overdrawing your account can result in a fee, you may see it as a helpful option to have, just in case. You can also request that your bank block transactions if you accidentally overspend, or establish a back-up for your checking account using either your savings or a line of credit.
Finally, debit cards don’t carry interest charges, while credit cards often have high interest rates that can keep you in debt. What’s more, debit cards can actually make it easier to save your hard-earned money and build your savings. For example, features like Simply Save let you effortlessly round up your purchases to the nearest dollar and automatically move the extra change to a savings account (or loan) of your choice.
A debit card is a great way to simplify your payments and promote better money management. By considering these benefits, you’ll be on your way to having better control of your finances – and peace of mind.
We’d love to help you get started! Visit one of our locations, or open a new checking account online to secure your debit card today. (Psst. Don’t forget to check out our custom debit card options.)
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