In recent years, debit cards have become a popular payment method in Canada – and for good reasons. Unlike credit cards, which allow users to spend money they don’t have, debit cards only allow users to spend what’s in their bank accounts. Why is debit card use so prevalent in Canada?
It’s super convenient.
Debit cards offer a level of convenience that is hard to beat. Canadians can use their debit cards to make purchases online, in-store and even at ATMs to withdraw cash. With the rise of contactless payments, Canadians can also tap their debit cards to pay for small purchases, eliminating the need for cash.
“Debit cards are convenient because all you need is your card and PIN to use them anywhere they are accepted,” says Milesopedia.com, “They give you instant access to your money when it’s needed, eliminating the need for chequebooks, cash, or lines at an ATM. All you need to do is swipe the card and enter your PIN.”
It offers security.
Debit cards are much safer to use than cash, especially when it comes to fraud and theft. If a debit card is lost or stolen, users can simply report it to their banks. Banks will quickly cancel the cards and issue new ones. In contrast, if cash is stolen or lost, it’s gone forever. Furthermore, many banks offer fraud protection. This means that users won’t be held responsible for unauthorized transactions made on their debit cards.
It helps with budgeting.
One of the biggest advantages of using a debit card is that it helps users budget their money more effectively. With a debit card, users can only spend the money they have in their bank accounts. This means that they can’t go into debt or spend money they don’t have. This can be especially helpful for those who struggle with overspending or impulse purchases.
There are no interest charges.
With credit cards, users who don’t pay off their balances in full each month can quickly rack up high-interest charges. This can lead to debt. Debit cards, on the other hand, don’t charge interest. As a result, users don’t have to worry about paying more than they can afford.
“Unlike using a credit card, the amount you spend on your debit card does not affect things like your credit score,” affirms, Milesopedia.com, “When you make a transaction, the source of funds is coming straight from your bank account. It is an excellent substitute for cash, and you avoid spending money you don’t have in most cases.”
It’s cost-effective.
Using a debit card is generally much cheaper than using a credit card. While some credit cards charge annual fees and high-interest rates, most debit cards don’t charge any fees for regular use. As well, many banks offer unlimited free transactions for debit card users, making it a cost-effective payment option.
Do you accept debit cards at your business?
At Unity Payments, we proudly offer Canadian merchants a variety of high-quality POS terminals to choose from. You can easily and securely accept credit card and debit card payments with the Newland 910, the Ingenico Desk 5000 or the Ingenico Move 5000. To learn all about your options, please don’t hesitate to call us at 1-800-661-3761. You may also email us at info@unitypayments.ca.
