The use of debit cards to make online purchases is incredibly popular. Because these cards carry all of the convenience of credit cards, but none of the debt risk they are a premium choice for many shoppers. An EFTPOS card is not as widely accepted online, mostly because it does not have the worldwide acceptance of debit cards.
We live in an online world where debit cards rule as one of the most used forms of payment. The process of making a purchase online has been streamlined in such a way that it is fast and secure to use your debit or credit card. In fact, when you buy something over the Internet there is no difference at all in how the transactions is processed between the two types of cards. Debit cards are issued by the two big credit card companies, Visa and MasterCard. This means that your debit card is accepted anywhere in the world that accepts those two cards. The power of the Visa and MasterCard logos really can’t be beat whether you are shopping in person or online.
The only difference is that when you use a credit card you are basically borrowing money from the card issuer and when you use a debit card the money is withdrawn from your linked account. Most banks offer debit cards that are attached to your cheque account. Savings accounts are not usually linked because withdrawing money for everyday purchases is not the point of a savings account. Some banks though have made debit cards available on mortgage or line of credit accounts.
The Australian EFTPOS system is not well suited to online transactions. The problem with it stems from the fact that they are only used in Australia. Because the Internet is worldwide it would be a challenge to get other vendors to implement the software required to accept them, especially given our relatively small market share. Online stores use shopping cart software that is not designed to accept EFTPOS cards which is why even those sites from here in Australia do not accept them.
When you make you make online transactions you are participating in the worldwide economy. It is pretty interesting to think that we are at a place where you can sit in your living room in Sydney and buy an item from Canada or France with just a few clicks of the mouse. As long as you have a debit card handy the transaction will go through easily. You will also have the comfort that comes with knowing the money you are spending is your own and not a short term, interest earning loan from a credit card company.
