Debit Cards

Debit cards are fast becoming a viable alternative to a credit card. Minimise your risk while retaining flexibility.

Debit cards are the most flexible and convenient way to shop. You can use them at retail stores or to make purchases by phone and on the Internet. They are now accepted globally, and are recognized in the same way as a credit card is. The only difference between a debit card and a credit card is that there is no credit given on a debit card since it is linked directly to your bank account.

No credit card comparison would be complete without also comparing debit cards. Debit cards allow you the same access and security as credit cards but the money comes right out of your bank account. You never have to pay interest because you are spending your own money.

Debt-free using debit cards

When you use debit cards to make purchases you are guaranteed that you will never go into debt. A debit card is just the same as using cash. There is no credit being offered with this card which protects you from borrowing too much money that you can't pay back at the end of the month. A lot of people are having problems with credit card debt these days and are finding that debit cards are the solution.

Debit cards are linked to your bank account and there is no possibility of going into heavy debt. As credit cards become a problem for people, debit cards step up to the plate as a viable alternative to debt reduction with freedom of spending.

As these cards get more popular, more card companies are offering bigger and better deals to their customers. Deals are getting more competitive and there are incentive programs being added to make these cards more attractive to potential customers. This is indeed a winning situation for anyone that is looking for a debit card. Some of the bonuses being added are incredible.

Cashback programs It is possible to use debit cards to not only keep debt under control, but to generate a small income as well. You can find debit cards that offer a cashback program where you are rewarded for using your card to make purchases. Every time you buy something with your debit card you will receive a percentage back in cash. Even though you won't get a lot back, it can quickly add up if you use your debit card for big-ticket items, utility payments or groceries.

Some companies even offer special bonuses along with their cashback programs. It should take some time to compare the different debit cards and what each is offering. Remember to look at the fees for each card, since a card with high fees and low cashback offers isn't really worth your time.

You must also keep track of the balance on your bank account to avoid going into overdraft. You do not want to have to pay any penalties as a result of using your debit card to pay for purchases. This will defeat the benefit of having a cashback reward.

Easy acceptance

One of the biggest benefits of debit cards is their ease of acceptance.. Almost anybody can get approved for a card since there is no credit check done. It does not matter what kind of credit history you have since the card is based on how much money you have in your transaction account at the time of purchase and not how much credit the bank decides to give you.

This means that anybody can have access to phone and Internet purchases that they couldn't access without a debit card. This gives a person freedom to make choices about where they want to spend their money and they are not limited any longer to shopping at their local stores only with cash. Even a person that has gone into heavy financial debt with a credit card can get a debit card to continue making their necessary purchases while paying off their debt.

This card is especially great for students that would never qualify for a credit card. Parents can link the debit card to their own account so that the student can pay for his necessities without having to carry cash. The parent can also monitor what the money is actually being spent on by checking the transaction history on their bank account. This is a foolproof method of keeping all the records straight in the family.

All-in-one banking

if you own a credit card, any of your purchases are linked to your credit card account and not to your bank account. This means that you need to keep track of two different sets of accounts, and that is assuming that you only have one credit card and one bank account. These days, many people have multiple credit cards and more than one bank account. This can make financial management a nightmare to keep straight. Having a debit card is a completely different system altogether. The debit card is linked directly to a transaction account for easy financial manageability. You'll be able to check your banking statements online and see exactly how much is left in your bank account every time you make a purchase using your debit card.

You have a few options for keeping track of your account: at the branch, online or by phone. Either way you choose to do it, you'll have up-to-the-minute financial transactions at your fingertips anytime you need them. This sure beats checking multiple accounts and trying to keep track of how much money has actually been spent and how much is left. This is actually a very common problem that a lot of people run into and a big reason why there is so much credit card debt. People simply cannot manage your finances this way.

Top recommendations

Here are the three top debit cards we have found based on side-by-side comparisons to other cards. These cards have certain strengths and benefits not found on other cards.

NAB Visa Debit Card

This card is a winner since it allows you the opportunity to completely waive your monthly fee. That makes it our top choice.

Features

• Monthly fee of five dollars.
• Unlimited access to ATMs that belong to NAB.
• Available in five different colors to make it a fun and exciting card.
• Choice of three different options: NAB eBanking, NAB Classic Banking, and NAB Gold Banking.
• Monthly fee waived upon certain conditions.

ANZ Access Advantage

This card gives you full security for those that value peace of mind, which makes it our second choice.

Features

• Unlimited transactions with this Visa debit card.
• Low monthly fee of six dollars.
• State-of-the-art security features with ANZ Falcon. Relax knowing that your card is being monitored for your protection.
• 50% discount to students for the monthly fee.
• Access to Visa Entertainment which offers special deals on travel, sporting events and cinemas.

Westpac Debit MasterCard

This is a phenomenal debit card with no monthly fee at all, depending on which account you link it to. This makes it our third choice.

Features

• Enjoy the benefit of banking with one of Australia's top banking institutes.
• Access to one of the largest ATM networks.
• Access to the popular MasterCard applause program.

Safety and security

Another great benefit of using debit cards is they are a safe and secure way to shop. If you are planning to purchase a big-ticket item you certainly don't want to carry around a wad of cash in your wallet. You may also prefer not to use your credit card since you want to avoid any chance of debt. It may also be a situation where you don't have enough credit left on your card to make the purchase and are faced with the alternative of either using cash or a debit card.

Debit cards are protected with a pin number that must be used every time a purchase is made. If somebody steals your card it will be useless to them if they don't know your pin. Some debit cards also offer a 90 day protection after purchase has been made.

Travelling with debit cards

If you have a debit card then you have eliminated the need to carry travellers checks or cash. If your card is stolen or lost you will be able to get it replaced. This is a much more secure way to travel, and an easier way to handle all of your holiday expenses. You will be able to monitor all of your holiday spending and be able to stick to your budget much easier.

Debit cards are becoming more popular every year in Australia as more people make the switch over from credit cards. They are an indispensable method of paying for items and will continue to grow in popularity in the foreseeable future. If you don't have a debit card yet then you really need to get one and enjoy all the benefits associated with it.

Now is the time to apply for debit cards since the deals and offers being put on the table have never been better. Applying is as simple as filling out an online application for instant approval.