You’d be hard pressed to find a Canadian citizen who isn’t very familiar with the word “Interac”. The company is known for its debit cards. It is widely regarded for providing consumers with the extreme convenience of being able to pay for purchases with money from their own bank accounts. No cash is needed. But that’s not all! E-transfers make it super easy for people to send money to their friends and family members.
For evidence that Interac card use is widely popular in Canada, just check the statistics reported by the company itself. Last year, there were 6.6 billion Interac debit transactions and 1.18 billion Interact e-transfer transactions. Let it be known, however, that debit cards are highly regarded in the United States as well – and there are several reasons why.
They help to avoid going into debt.
Going into debt is a potential issue for irresponsible credit card users. Because credit card transactions represent funds that are being borrowed to make purchases, some users overspend. Debit cards, however, help people to avoid debt. Again, debit card purchases use money that shoppers already have in their bank accounts. There is no borrowing going on. That way, going into debt can be avoided.
“With a credit card, it’s easy to purchase anything you want, even if you don’t have the funds,” notes New York’s North Country Savings Bank, “With debit cards, the money comes directly from your bank account, so you avoid spending more money than you have. Plus, you don’t have to remember to pay the credit card bill once a month.”
You avoid fees and service charges.
Most debit cards are completely free to use. As long as you have established a bank account with a financial institution, you will be provided with a card that enables you to withdraw cash from ATMs and make purchases directly from merchants. Most people simply use their debit cards like cash instead of actually taking out any money from machines. This enables them to avoid the fees and charges that sometimes come with credit card use.
“Unlike credit cards, which often come with annual fees, late payment charges, substantial foreign transaction fees of up to 3%, and other costly extras, debit cards typically have few or no fees attached,” writes Jennifer Degree of Vermont and New Hampshire’s Union Bank, “If you use your debit card carefully, you can avoid incurring a fee altogether.”
They eliminate the risk of losing cash.
When you walk around with cash on you, you run the risk of losing it or having it get stolen. In either scenario, your money is pretty much gone for good. This isn’t the case for lost or stolen debit cards. They can easily be replaced. As well, any potential charges that are fraudulently made can be disputed, making the genuine cardholder not responsible for them.
“Anyone can steal cash from your wallet, but it’s much harder to steal money from a debit card,” reminds North Country Savings Bank, “The thief would have to know your pin, and if you report your card missing in a timely manner the bank will cancel it so nobody can use the card.”
Do you accept debit cards in your store?
Divvia offers a wide variety of top-of-the-line payment terminals to help your company easily process debit and credit card transactions. To learn all about them, please don’t hesitate to call us at 1-877-748-2884 or send us a message on our Contact Us page!
