Debit cards are a great way of making everyday purchases without the need for physical cash on hand. Plus, having a debit card can be useful for those who aren’t comfortable with credit cards and want to only spend with their own checking and savings accounts.
Are you looking for a new debit card? Here’s our A-Z list of all the debit card providers we have on the Mozo database.
You might be wondering what the difference is between all the different types of cards you can get are? Here is a comparison between debit, credit, and prepaid cards.
As mentioned, debit cards let you use your own money that you have linked to your everyday accounts. Generally speaking, if you’re uncomfortable spending money you don’t have, debit cards can be a stress free way of paying (with the simplicity of tap and go).
Credit cards are different in that you are borrowing money from your provider instead of withdrawing your own money. Therefore, you have to keep in mind that you will need to pay back what you owe with interest. In addition, some credit cards also include frequent flyer points for every dollar (more or less) which can be an attractive option for some spenders.
Prepaid cards are fairly similar to debit cards. However, one key difference is that a prepaid card is not drawn directly from a bank account and instead needs to have cash deposited into it (which can take time to go through). One other aspect of prepaid cards that is different to debit cards is that they usually cannot be overdrawn.