The Advantages of Cash Debit Cards

by : Charley Hwang

Cash debit cards are an excellent way to make payments for all purchases. In the past, most banks offered the ATM option (Automatic Teller Machine) card along with a separate debit card. But nowadays, more and more institutions combine the two for extra financial power.

This card serves two purposes - to withdraw money at ATM machines and to pay at point-of-scale terminals. These are the swipe-card machines which were used before to make credit card payments.

Cash debit cards hold a nice advantage over credit cards, in that the money limit cannot be exceeded. When using debit cards, there is a set amount put on the card and every withdrawal or purchase helps that card to reach closer to zero, which means going over a bank balance is impossible. On the other hand, credit cards allow people to have a preset amount of credit, which is money borrowed by the financial institution. Interest repayment does not come with using cash debit cards.

Checking cards are another name for cash debit cards. It works like a check in that the holder carries no money with him. The cards remove the need for personal information and identification. Furthermore, debit cards are safer, in that personal information may not be taken from it. A secure PIN number is used, which lets the customer access his account from ATMs. The PIN number should be safeguarded at all times and should be written down and put aside for future reference.