How can you pay for your day-to-day expenses? Many consumers prefer cashless purchases because they are more convenient. You don’t have to worry about having enough cash or locating a pen to write a check when using a debit or credit card.
These two types of plastic, however, have not created equal. You may be aware of credit card perks such as points and cash back incentives. So, you may not be aware that debit cards may provide many of the same advantages.
Continue reading to learn how to make the most of your debit card. Therefore, before you look for the best ATM processing companies, let’s know the hidden benefits of a debit card.
Avoid Fees & Service Charges
Credit cards can include annual fees, late payment penalties, and significant international transaction fees of up to 3%, and other pricey extras, so debit cards usually have few or no costs.
While you go for ATM transaction processing services, you can avoid paying a charge entirely if you use your debit card wisely. Some banks, for example, charge a few dollars when you withdraw cash from an unaffiliated ATM.
However, “ATM fees” can easily avoid if you plan ahead of time. When you know you’ll need some money; you may go to an in-network ATM. Or, you can use a store’s easy “cash back” option when you pay with your debit card.
Security
You are well aware that the money has gone for good when your wallet has ever been taken. Debit cards help prevent identity theft since no one can use your card at an ATM unless they know your PIN.
The recent inclusion of chips to debit cards provides further security. Some debit cards also offer security protection for online purchasing. It allows you to make transactions with your card only.
Bank & Merchant Rewards
Did you hear of credit cards with rewards? Some debit cards are now participating in the rewards game. You may earn points for every dollar you spend and redeem them for travel, shopping, or gift cards.
Typically, the benefits have for transactions made using your signature rather than your PIN. The method is the same as it is with credit cards.
But you get no annual fee, no interest charges, and all of the other debit card benefits we’ve already stated. As a result, some retailers prefer debit card payments, especially those with a PIN.
Lower Tax Fees with Credit Cards
When this comes to paying federal taxes, using a debit card rather than a credit card might save you money on “convenience costs.” All three of the IRS’s payment processors impose a fixed fee of $2.25-$3.95 for debit card payments.
For credit card payments, the cost is a percentage of the entire amount ranging from 1.87 percent to 2.00 percent, with a minimum fee equal to the debit card flat rate.
In this case, you’d pay at least the same amount in payments if you used a credit card, but you might potentially spend much more.
Eliminate Cash
If you use a debit card regularly, you won’t need to carry cash with you. If you need some money, you can always go to an ATM and withdraw as much as you need or earn cashback when you purchase most places.
