Digital News Report – People get a debit card more often when signing up for a bank account on the same day than in previous years. In 2009 there was 35 percent of financial institutions that had offered instantly supplied debit cards at either some or all of their bank branches which was up 28 percent from the previous year. This was according to a 2010 Debit Issuer Study that was financed by PULSE.
The reason banks are offering cards instantly instead of mailing them to you in a couple of weeks may be because of better customer satisfaction and security when signing up with a bank account with them. However, it is more than likely that the banks want debit card holders to use them so that they can increase their profits.
The benefits of using a debit card is that you don’t have to carry cash with you everywhere you go to pay for merchandise. Some individuals may not be able to get an unsecured credit card and rely on a debit card for all their purchases. A debit card works a lot like a credit card, but instead the money is withdrawn from a bank account that is owned by the debit card holder.
A prepaid credit card is sort of like a debit card in that you put money up front to pay for the goods, but some prepaid credit cards will also give you a credit line as you show that you are responsible. Prepaid credit cards are good for people with bad credit and want to rebuild their credit.
Debit cards on the other hand can be a convenience for anyone that has a bank account. Some grocery stores don’t accept credit cards and a debit card could work there. You can get you bank deposits and cash withdrawn from an automated teller with a debit card after banking hours.
Debit cards can be costly in fees if you use them at an automated teller outside of your banks. When you sign up for your bank account make sure to ask what are the debit card fees associated with the account.
By: Victoria Brown