Using Debit Cards to Develop Spending Self-Discipline

Debit cards are issued by banks and in most cases are exactly the same and are issued in the same way as credit cards. The only difference is that debit cards of ncsecu do not give you credit. In fact, using a debit card is like issuing paperless checks. Depending on how the transaction is processed, whatever you spend will be deducted from your checking account almost immediately. There is no invoice, no interest fee and no membership fee to pay at the end of the month.


If you do not have the money to cover the transaction, the debit card will refund the lost transaction. Banks often limit the size of a single transaction that can be processed up to $ 500 and up on a given day. Is between 2,000. If you know that you are using your debit card beyond your limit, then you will have to get pre-authorization from your bank, which is usually only 24 hours. Some banks charge for direct debit transactions, but not for transaction fees.

There are various products in the market which are sold under different names. When a debit card is most commonly used, your bank may issue a check card or an express card. However, different names are just a marketing tool that differentiates one bank's product from another. There are also different types of debit cards on the market. Your bank may offer you one or more of the following options:

A personal identification number or PIN is required for a debit card to function. You can use the card at any terminal or ATM to withdraw cash.
A delayed debit card connects a basic debit card to a card that looks and functions like a credit card. If you use the card at an ATM, you will need to use a PIN to secure cash. If you use the card as a debit card for business transactions, you must use a PIN to complete the transaction. However, if you use the card as a credit card, your signature is sufficient to complete the transaction.
Using a debit card to control your financial future is a convenient way to self-discipline your spending. The great thing about debit cards is that you can only spend what you have. You cannot claim future dollars with a debit card, you can only spend in your checking account. Impulse buying slows down. As you work to learn budget and spending discipline, debit cards severely limit your ability to spend heavily. Debit cards give you credit card facilities, but use the pay-as-you-go method. You always know where you are and do not have any borrowing costs that affect your ability to pay your debts. Debit cards also provide users with the added convenience of not carrying any extra cash or checkbooks around. Debit cards are a reasonable replacement for both, with the added advantage that the card is protected by a PIN. In the event of loss or theft, using a debit card is more difficult than using a checkbook and, unlike cash, does not disappear forever.

Unfortunately, there are some disadvantages of debit cards that you should know about. For one thing, if you do not properly manage your transactions, you can easily get your bank balance out of control. These losses largely stem from the possibility of offsetting your account balance around the clock on the Internet. Whenever you withdraw money from ATM you should request your credit. Although no interest is charged, debit cards often carry high usage fees. For example, if you use a foreign ATM (which is not affiliated with your bank), the bank that owns the ATM may charge up to 00 3.00. Often, your own bank charges foreign withdrawal fees at an ATM which is similar to the fee charged by the owner of the ATM. You can pay 6. 6.00 to withdraw at least .00 20.00. This is a high value for access to your own funds. You can avoid all charges by using ATM from your bank only.