Debit cards are a convenient way of spending your money. Though debit and credit cards look the same, they work differently. They are the balanced medium between credit cards and cash because, unlike credit cards, you do not exceed your limit or overspend; neither do you have to carry around the money.

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Debit Cards provides excellent ease and comfort and comes along with a ton of benefits for the cardholder. Each card comes with its advantages and disadvantages so before applying for one, it is better to gauge the pros and cons thoroughly.

In this article, we have listed down 5 flaws of a debit card that are hard to overlook:

But before jumping to the disadvantages of a debit card, let’s talk about how it works. A debit card works in two ways:

  1. Through ATM Machines, which as a result withdraws the desired amount of cash immediately; and
  2. You can easily purchase anything by either swiping or scanning the card through a card device.

Now let’s talk about the negative aspects of a debit card that every cardholder needs to know before getting one:

No grace period or extra credit:

Unlike credit cards, debit cards do not allow the cardholder to use any extra cash than what is already in the owner’s account. Trying to use even a penny more on purchase or withdrawal will cancel the transaction immediately. A debit cardholder cannot borrow any money on credit from the bank, making it less feasible than credit cards.

Extra fees on withdrawal:

ATM withdrawals from the same bank ATM do not charge any transaction fees from the cardholder. Nonetheless, when the user withdraws the funds from a different Bank’s ATM, a certain amount of extra service fees is charged. This amount is deducted from the holder’s account, which makes it a disadvantage.

No Reward Points:

Reward points can provide the user a ton of benefits, especially if they are frequent travelers. Reward points gained from each purchase can be used for discounts on travel, access to lounges, special offers on hotels and rentals, etc. However, debit card users can take advantage of the facility as debit cards do not grant any credit points on any kind of purchase.

No Improvement in Credit Score:

When you purchase a credit card, it affects your credit score. Simultaneously, a debit card holder’s credit score remains unaffected by any purchase, transaction, or withdrawal, even if the individual has a good amount of cash in their account.

Higher chances of fraudulent transactions:

In comparison to credit cards, debit cards have a much higher chance of facing fraudulent debit transactions. Each bank, however, takes maximum precautions and steps to forbid that from happening, but in any case, if someone gains access to your PIN and CVV, there are chances that your account is compromised. If that happens, there are fewer chances you have a case against the bank to get your amount that was transacted back.

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