Debit cards refer to cards that access an individual’s account to withdraw or transfer money. The debit card will be linked to the bank account, and the amount debited would be reflected in the respective depositor’s account within a few days. The growing popularity of personal debit cards is due to their function as both credit cards and ATM cards. What makes them more attractive is no interest is charged when they are used.
Benefits of debit cards in Singapore
- Flexibility and control
As compared to cash payment, debit cards provide a more controlled method of spending as transactions made by the card are immediately reflected in one’s account balance. Visit https://www.ocbc.com/personal-banking/cards/debit-card.page to get a better understanding of flexibility and control. Moreover, if funds are insufficient to make a purchase, the cardholder will not be able to proceed and this would prevent overspending.
The use of debit cards is more secure than cash or cheques as one only needs a unique PIN to complete transactions. Should it get lost or stolen, unlike cash and cheques, there is a greater chance that the money in one’s account can be recovered.
With a debit card, you don’t need to carry a large amount of cash when shopping as it is accepted at most outlets and there is no need to calculate the amount of change needed for the payment. Besides permitting retail transactions, they are also accepted by some restaurants and other merchants.
Some reward programs are linked to debit cards, which means that your purchases could entitle you to certain benefits. For example, airlines or travel agencies may offer discounts or free flights if sufficient miles are collected through spending on the debit card. If one is interested in receiving rewards, it would be wise to choose a bank that offers more attractive deals.
- Account monitoring
One of the main advantages of using a debit card is that it allows account holders to keep track of their spending as all transactions are recorded online or with the respective institution. In
- Balance control
When purchasing with the use of a debit card, it is possible to monitor one’s spending. By doing so, you will be able to avoid incurring debts which may lead to financial problems later on.
- Security against theft or loss
With cash or cheques, one runs the risk of losing them accidentally and this could result in substantial loss. This is not a problem when using a debit card as it does not contain actual cash. Should one lose the card, a new one can easily be obtained from the respective bank.
In Singapore, personal debit cards have become a preferred payment method as they provide both flexibility and security. There are many benefits to using the card such as making purchases online and not having to worry about carrying too much cash when shopping. Besides enjoying numerous benefits, one’s spending limit would be determined by the depositor’s account balance. Consequently, this makes it easier for cardholders to manage their expenses and accounts more effectively.