Last week, the Canadian POS Blog explained why credit cards are so popular with students. Among the top benefits of credit card use for students is the fact that credit card usage helps young people establish their credit scores. Doing so enables them to eventually earn the type of credit that helps them qualify for jobs, apartments and loans.
The truth is, however, that not every credit card user is a responsible one. Just because credit cards allow you to spend more money than you actually have, it doesn’t mean you should! For some young consumers, debit card use is much more ideal. Unlike credit cards, debit cards only allow you to spend up to the amount of money in your bank account. Debit cards are also popular with students for many other reasons.
You avoid going into debt.
As we just mentioned, going into debit is a potential issue for irresponsible credit card users. Debit cards, however, help young 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 North County 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 Union Bank, “If you use your debit card carefully, you can avoid incurring a fee altogether.”
You avoid 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.
“You don\’t have to carry around cash if you regularly use a debit card,” informs North County Savings Bank, “If you do need cash you can always stop by an ATM and take out however much you need or get cash back when you make a purchase at most stores.”
Do you accept debit cards in your store?
Contact Canadian POS today and ask us about the revolutionary Poynt Smart Terminal. Even if you already accept debit cards, it would be well worth your while to look into upgrading your current POS terminal. Call us at 1-877-748-2884 or email us at info@localhost.