Debit Cards, also known as Check Cards, is a special form ofcards that look to the merchant just like a Credit Card, bearing Visa Electron, VISA or MasterCard logo on them. This card is also can be use as an ATM card that allows you to withdraw money from ATMs (directly from your checking account) without incurring interest. Also, the purchases made are debited (thus the name) from your account instantly. Therefore there is no monthly statement, no interest, nothing.
Even though now there are 'Islamic Credit Card' in certain Muslim countries (e.g. Malaysia), this Debit Card card seems like a much better alternative to normal Credit Cards, offering all its services without the risk of interest and riba. One of the example of the Debit Card is 'Visa Check Card' from Visa.
However, there are a few points to consider:* There maybe a small monthly sevice charge involved when you use the card (e.g. 1.5$ per month for large banks in the USA, only in months that you use the card in). Note that almost all cards in the USA have no annual fee, unlike other parts of the world (e.g. Middle East).
Apart from the above, the debit card is a very convenient way of avoiding the drawbacks of credit cards.
5 comments:
Hi! Thise is another important blog for
financial-planing
i agree with you. debit card is much better alternative for credit card. we can limit our spending, as it can not be charged more than how much many you have in the bank account. there are a few local banks in malaysia that offer debit card facilities such as Maybank(Malaysia's largest bank), Affin bank, Ambank, public bank, etc. some of these cards can be used to do transaction through paypal.
Well I have different opinions about this.Credit Cards are blessings if you know how to use it else it can ruin yourself. You need to have control over your expenses, and should have proper understanding of credit cards.
Financial Planning
I totally agree with you Personalfn. Things like Credit Cards should be properly and wisely handled before it can ruin everything else. A person who owns one should have a total control over how to use it for his own expense. Because after all, he'll be the only one who'll pay for how much debt he had gain.
Ashley
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Debit Card is much better as no interest to pay and limits our shopping as it is difficult to control.
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