What is a debit card?A debit card is a plastic card that's the same size and shape as a credit card. Debit cards work much the same way as an ATM card, with the added bonus of being able to use them everywhere you use a credit card. You can use a debit card for anything from paying a restaurant bill, to shopping online or purchasing concert tickets over the phone.The debit card is connected to your bank account. When you make a purchase with your debit card, the amount of money is automatically deducted from your bank account. Thus, the name "debit" which means subtract. How are debit cards different from credit cards?When you use a debit card, you must have sufficient funds in your bank account to cover the purchase. The money is instantly deducted from your account, so you can spend only as much as you have.A credit card, on the other hand, allows you to make purchases now that you can pay for later. The institution which issued you the credit card pays the store, then y ou repay the credit card company when your bill arrives. Credit cards come with a set spending limit, and you can continue to make purchases until you reach that limit, regardless of how much money is currently in your bank account. Should I use a credit card or a debit card?Both credit cards and debit cards offer a good deal of benefits and convenience. Which you should choose depends on your spending habits, lifestyle and your financial goals. Most people benefit from using both.Debit cards are convenient because they are widely accepted and you only spend the money you have. Because you use a secret pin number to verify the transaction, you don't have to show identification when you pay with a debit card. Also, there is no interest charged on purchases you make with a debit card.Credit cards are beneficial because using them responsibly boosts your overall credit score. The major credit card types are accepted virtually everywhere, so a credit card is the only form of pay ment you need in most situations. Some credit cards allow you to earn rewards, such as frequent flyer miles, when you make purchases. Credit cards also provide you with excellent fraud protection in the event that your card is lost or stolen.How can I compare debit cards online? Even though they all work the same way, debit cards can differ in specifics such as annual fees, transaction fees and whether or not they pay interest on a credit balance. Debit card options are becoming as plentiful as credit cards, so choosing the best one isn't as easy it use to be. Fortunately there are companies that recognised this need and stepped in to fill the void. To determine which debit card is right for you, you can now use an online comparison site.
Mozo.com.au is a website that was created to enable consumers to compare debit cards side by side. A database pulls up a list of results based on the criteria you select. The results list allows you to directly compare each card, which is more convenient than switching back and forth between all of the different card issuers' websites. You can also click on the name of the debit card in order to learn more about it.
Another helpful feature of sites like Mozo is the ratings and reviews provided by fellow site users. Better than an advertisement, these reviews are objective assessments of people's real life experiences with the pros and cons of each card.
Once you've found the card you like best, you can apply online through the Mozo website. Mozo and other online debit card comparison sites are one-stop shopping for the card that make shopping more convenient!
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