Advantages and Disadvantages of Using Debit Cards

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People believe it is safer to use a debit card instead of a credit card. However, debit cards do not always come with advantages, there are also disadvantages as well.

Pros:

1. Direct access to funds: Debit cards provide direct access to funds in a linked checking account.
2. No interest charges: Debit cards do not have interest charges, so you only spend what you have.
3. No credit check required: Debit cards do not require a credit check, making them accessible to everyone.
4. Fraud protection: Some banks offer fraud protection for unauthorized transactions.

Cons:

1. Limited fraud protection: Debit card fraud protection may be limited compared to credit cards.
2. Overdraft fees: Debit cards can result in overdraft fees if there are insufficient funds in the linked checking account.
3. No rewards: Debit cards do not offer rewards or benefits like credit cards.
4. No building credit: Debit card usage does not help build credit history or credit score.

 

[saoussen57651]

You have to use SMS code linked to your debit card for confirm each transaction, some debit card providers offers this functionnality. If OTP code is not provided purchase is not procedeed. Another alternative in some countries is facial recognization means the agent scan your face for the transaction being processed. If it is not debit card owner transaction is not processed either credit or debit card.