When you choose to open a current account in a bank, you are automatically issued a debit card.
This type of service package is undeniably one of the most widely used basic bank products at the present time, and it has become essential.
A debit card is directly linked to your current account and can be seen as an equivalent of cash, while sending money has become almost as simple as texting.
Advantages of debit card
In the age of digitalization, various types of cards and virtual wallets, the question is whether we really still need cash.
Using debit cards has become much safer now than keeping money in the pocket, and some of its main advantages are:
- Easier cost-tracking – full control of the costs is in your hands at all times. A bank statement is a very easy means of keeping record of your costs.
- Increased security – stealing from a debit card is much harder than stealing from a wallet. A potential thief would need to know your PIN code; besides, if you notice any suspicious activity you can block your card very easily through a mobile application, and completely disable its use until you are sure everything is okay.
- It is easier and simpler – Do I have enough cash? Do I have change? How much is left? Purchases with your debit card are made in an instant, and the balance in your account is updated almost immediately.
- It is free of charge – debit card issuance is mainly free of any charge. Additionally, as debits cards are linked to current accounts instead of a credit line, debt occurs only with overdrawing, so you will avoid spending more money than you have available.
- Less debt – debit cards do not allow you to overspend; there is no need to worry about the payment of debt every month as in the case of credit cards; you do not need to specifically apply for a debit card or meet the minimum credit score requirement, all you need is your current account.
- (Believe it or not), it contributes to country development – each time you pay with a debit card, the funds you have paid for the goods or services go directly to the seller’s account. When you remove cash from the equation, the possibility of tax evasion also disappears, and therefore, government revenue increases.
According to a Master Index BiH research conducted in spring this year, debit cards are used by 61.10% of the country’s population, which is an increase from 53.60% from 2018. What is particularly appealing about this type of cards is that they are simple to use and available at any time, as is demonstrated by the research as well – namely, 48% of the population use debit cards for everyday purchases of groceries, 31% use them at petrol stations, while 31% use them to purchase clothing. Debit cards can be seen as the best available option resulting from two different worlds – credit cards and cash. They are easy to get and use, cash is no longer needed, and over indebtedness is prevented.