Advantages

Debit card is also called electronic check because it is linked with checking account and it can be used anytime, anywhere just like credit card. The only difference is that money is deducted from your checking account. There are some advantages of using debit card.
(1) It works like an electronic check and hence you don’t need to carry cash or paper checks with you while traveling
(2) Debit cards are widely accepted because the transaction through a debit card is instant
(3) Debit card works throughout the world. A paper check may not be accepted in other state or country but debit card is widely accepted
(4) They allow you to stay within your budget since you can only spend what is on the account ie your real money.

Internet Purchases

Debit cards have become very common mean of making purchases and paying bills via internet or on a retail store. Debit cards are good to use if you are using them wisely. You must know how to use them because they are very open to fraud attacks. They are linked directly to checking account and when you make a purchase in a retail store, your info gets stored in the machine. The machine owner can get into your account anytime and misuse your info. It is advisable to use credit card or prepaid card for making purchases because a credit card has an additional layer of security. They are covered by a zero liability law which means, for any fraud transaction issuer will be responsible and pay to the card holder. Whereas a prepaid card is safe because they carry limited amount and they are virtual so nobody can access your private info.

Overdraft Fee

Overdraft fee is the fee which banks charge the consumers when they use the debit card for an amount which is more than the amount present in the checking account. It’s like a check bounce fee which is banks charge when you go to bank with a paper check and your account has the lesser amount. Last year Americans paid an overdraft fee of $35 billion which is too high. Federal rules could cut the amount down. They make banks ask the consumer to opt if he wants to pay the overdraft or not. Earlier banks used to send no notification and a fee was charged. Some banks charge a fee as high as $35 per overdraft.
Not all the banks charge the overdraft fee. It depends on the issuer of the card, features of the card, nature of transaction. You should read all the terms and conditions when you apply for the card. NEXCEL educates their customers at the time of application and we don’t charge any hidden fees.

Financial Access

Debit cards and Prepaid debit cards are popular among teenagers and students. Legally teen cannot be a credit card holder hence prepaid card is the best option as they don’t have any such criterion. Guardians can give prepaid card to their teen kids and charge it with money when required. This way they can control their spending as well as help them and make them financially secure. Prepaid cards act as good trainers for teens in managing debit and credit card. Not only teens, they are used by elders also as they are very safe to shop and pay inline bills.

What is a prepaid debit card?

Prepaid debit card also known as reloadable debit card is also a payment gateway and it appeals to a variety of users. People who don’t have bank account or those who don’t want to use the debit card or bank account for financial transactions use prepaid debit card. Prepaid debit card is the safest way to shop online or offline, pay bills and to make purchases because it is not linked to any or your accounts. The balance which you load onto the card is used for payment. They have all the functionalities of a debit card and are accepted widely. In fact prepaid card is always advisable to use for anybody.

Debit Card Frauds and Safety Measures by Nexcel

Debit Card Frauds and Safety Measures by Nexcel

What is a Debit Card?

Debit card also is known as bank card or check card is used as a payment gateway for paying online and offline bills and making purchases. Debit card provides the cardholder electronic access. The card is linked to one or multiple checking accounts. When you need money for purchasing goods through a store or through some online medium, this card can http://www.blogger.com/img/blank.gifbe used for direhttp://www.blogger.com/img/blank.gifct transfer into the sellers account from your account. Card contains some electronic codes and when swiped on the machine, machine detects that code (which is unique for every card) and informs the bank about the transfer. Bank then transfers money into the sellers account. This process is very fast and takes seconds in transfer.

Since debit card is linked to checking account and can be used anytime, anywhere, it is also known as electronic check. The money which you use is your real money. Debit cards are not as secure as credit cards. Credit cards are also not very secure but debit cards are more open to frauds because the seller directly gets into your bank account. If you are not aware enough then you can be victimized.

Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a check guarantee card. Merchants may also offer cashback facilities to customers, where a customer can withdraw cash along with their purchase.