A debit card is an instrument issued by an entity that allows the person to use it as a means of payment. This amount is withdrawn from your bank account which is associated with the card.
Online debit cards almost always tend to be an alternative for most people who don't want the hassle of managing their money. That is to say, it is not a financing instrument but a means of payment to have the capital that each user has in his account.
Debit cards for shopping online
First, with few exceptions or by express order of the cardholder, all debit cards allow you to make purchases over the Internet. The process of making an Internet purchase with an online debit card is not much different from that of a credit card. This is the same operation.
The big difference is where the money is coming from to make the purchase. In the case of a credit card, as its name suggests, the debit is made on the credit available to the buyer on this card and payment will only be made on the expiration date of this card. . In an online debit card, on the other hand, the debit is done by direct debit from the bank account associated with the debit card. It is therefore important to note that if you do not have enough money in your account to pay for the purchase, the charge will be rejected and the transaction will not be completed.
Different types of online cards
Dozens of possibilities are available to you whether you are looking for a prepaid card or a online debit card with which to safely shop online. Each of them has its own particularities, starting with the physical medium or the availability only in virtual format. Most of the major national banks have at least one option, but there are also independent, exclusively online banking solutions where all operations are done over the internet.
The benefits of online debit cards
- Convenient: They are very easy to use and are useful in many situations, from buying a product in a store to paying taxes online. As long as there is money in your bank account, payments will be made quickly and you will be able to know exactly how much money you have on hand.
- Accessible: they only require a few documents such as an official ID and a small initial deposit. In that sense, they are more convenient for people who are looking for something simple because there are not so many complications.
- Have cash: they are also useful for withdrawing money in cash when an establishment does not accept "plastic". With the number of ATMs that exist in different banks, you can have a certain amount of cash at all times.
- Can be used worldwide: it does not matter if the currency used is different from the one you are used to using in your own country, when you pay with the debit card, the conversions are done automatically. This is useful when traveling abroad or when paying in online stores established in other countries.
- No interest: Since you only use the money available in your account, no interest is generated by using credits or amounts that are not really yours. This allows you to have an account without worrying about creating debt that accumulates and becomes impossible to pay off.
- Rewards: Some debit cards offer rewards for earning points on purchases. Depending on the type of cards, they also allow you to enter contests and win various prizes.