What are the disadvantages of debit card
Debit card is basically a prepaid card. Users can spend the balance of the card anytime, anywhere. It can be used for a variety of purposes, including paying for goods and services. Users can also pay bills, buy products or services through their debit cards and check card number. What are the disadvantages of debit card
Goods and services also permit persons who are merchants to accept debit card. Not many transactions take place in cash. It has replaced cash in most cases.
Debit cards are ideal for instant payment online, convenience store purchases, drug stores, grocery store, and gas stations. These are some of the advantages of debit card.
There are some disadvantages of debit card too.
There are many disadvantages of debit card.
1. Offers are limited.
They offer only specific places and products. There are limits in terms of how much money can be withdrawn from ATM transactions in each day. ATM allows maximum withdrawal of up to $300 per day.
2. Fraudulent transactions.
Users sometimes discover that their cards are used by others. Some banks issue new card each year. User need to be aware that in case there is any usage on their debit card they need to report it to the bank.
3. Funds are frozen
Funds are frozen if there is no activity for a long time. It has been found that the ATM transactions are sometimes the reason for freezing funds. User can also find their funds frozen or they are unable to access their funds.
4. Debit cards are not accepted by all places.
Each bank has a separate list of places where they accept debit card transactions. If user has their card and tries to use it at a place which is not currently listed in the bank they will not be able to use the card.
5. Cards are inconvenient.
Debit card users cannot use both the debit card and the credit card. Credit card companies and debit card companies are separate companies. If one company fails then the other company will not take over the services.
6. Identification is required.
In case the card is lost or stolen, the user will need to provide verification of their identity.
7. Debit card can be damaged.
The user needs to ensure that the card has been used in a secure place.
8. It is not suitable to someone who has less money.
The user will find it difficult to use the debit card in case they do not have enough money for the required transactions.
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