The Benefits of Debit Cards Over Cash and Credit Cards
As a credit card user who takes advantage of rewards programs while paying on time, I was intrigued when a representative from ACE Pink Prepaid Debit Card approached me about supporting our site and letting us learn more about their product. Let’s talk a little bit about the benefits of a debit card over cash and credit cards, as well as any detriments.
DEBIT CARD BENEFITS
1) Protect yourself from yourself. The most important benefit of using a debit card is that once your account goes to zero, you aren’t able to spend. If you’ve only got a debit card in your wallet, you will theoretically never spend more than you have, which is a very healthy thing in this age of consumerism. Customers can load the ACE debit card up to $5,000 per day at an ACE location or up to $10,000 a day with direct deposit. The maximum balance on the account is $10,000.
2) Peace of mind with insurance. The second most important benefit of a debit card over cash is insurance. Instead of carrying around a couple hundred bucks in your wallet, just carry a debit card. If you get jacked on the streets while shopping, you can rest assured the robber won’t be able to use your card, and if they do, you have the debit card issuer on your side. I never recommend anybody ever put up a fight with a mugger by the way. Your wallet/purse is not worth injury or your life, especially if you have a replaceable debit card.
3) Rewards programs. The ACE Pink Prepaid Debit Card’s award to the consumer is that it donates a portion of all revenue to help fight breast cancer – a total of more than $350,000 in the past two years. Their policy of giving back is very much in-line with this site’s policy.
4) Convenience. A debit card can be used for online transactions, ATMs, and anywhere that Mastercard and Visa are accepted. Essentially, the debit card is a fantastic cash replacement for most transactions, except for when you lose NCAA tourney bets!
5) Love & Attraction. Susan G. Komen is a genius at trademarking the color pink for fighting breast cancer. If you are a male, and bust out one of these cards on a date, I’m pretty certain the card will be a fantastic 15-30 minute talking point. If you are at the bars, and tell the bartender to “keep it open,” I’m pretty certain women will want to inquire about the card. If you are a woman using the card at the bar, guys will most certainly use your card as a talking point as well!
DISADVANTAGES OF A DEBIT CARD
1) Protecting Yourself From Yourself. If you are at the BMW dealer and really want to splurge, you might only be able to buy a set of wheels instead of the whole car with a $10,000 limit from ACE or any other card. That said, I’m sure if you demonstrate your financial muscle, they’ll increase your funding.
2) Men Mock Men. If you hang out with a bunch of unruly, insensitive dudes, they might mock you for being a good guy and carrying a pink card. If you’re too insecure to use it, then you best keep it hidden or use cash or a manly credit card instead.
3) A Card Is Still A Card. The reason why paying in cash is so painful is because cash is real, and a debit card is less real. Although you can’t spend more than you fund in your debit card, you can spend it all if you are weak.
4) Fees. Debit cards can charge $10/month on average for it’s use. The good thing is that if you are going to the ATM machine several times a month, that cost negates out.
I’ve never really thought about using a debit card until now. Having been jacked at gun point in a strange land before, I’m hesitant to carry more than $100 in my wallet. If I could carry zero cash in my wallet and just use a debit and credit card, that would be the ideal scenario. A debit card is a useful tool for many of the reasons stated above. Just remember to spend responsibly!
Readers, what are your thoughts about debit cards vs. credit cards and cash? How many cards are in your wallet, and what is the maximum amount of cash you feel comfortable carrying?
Sam @ Financial Samurai – “Slicing Through Money’s Mysteries”
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