When it comes to choosing a payment method for everyday transactions, many people still prefer cash. Whether the goal is to reign in credit card use or stick to a budget, cash payments could help reduce overspending and put you back in charge of your finances. However, carrying around paper bills and coins instead of plastic could cost you in other ways.
Here are five reasons to choose a debit card over cash as your payment method of choice.
1. Hassle-free Tracking
Successful money management requires a system that allows you to keep tabs on spending. While you can attempt mental math multiple times a week to keep track of cash purchases, a debit card simplifies the process. When you have a debit card linked to your checking account, transactions are recorded to your account so you can easily monitor your spending your balance.
2. Flexibility
Unlike debit cards, cash isn't accepted online. You can use debit cards almost anywhere that accepts credit cards. For example, use your Credit Union of Colorado Visa® debit card anywhere that accepts Visa® credit cards. Debit cards can be used for more than just making purchases. Instead of writing checks or visiting a branch location, use them for bill payments and ATM withdrawals.
3. Fraud Protection
If someone steals your cash and spends it, you have little chance of recouping the funds. But Visa® debit cards have built-in fraud protection against theft. Some financial institutions, like the Credit Union of Colorado, give cardholders the power to stop withdrawals by logging into Online Banking and manually turning off the card. This prevents anyone from using the card again until the account holder turns it back on.
Even if you're unable to turn your card off, you're still protected. Federal law limits your liability for unauthorized debit card transactions to $500 if the card is reported as lost or stolen within 60 days of your statement. The sooner you report a lost or stolen card, the lower your liability.
4. Convenience
When you pay for a product or service with a debit card, there's no exchange of paper bills or coins. For example, if you want to buy something at the grocery store, open your mobile wallet and tap to pay with your debit card instead of fumbling through your wallet for cash. Or, if you need to pay a parking meter, you don't need to cross your fingers and hope you have enough coins. Parking meters around the country now accept Visa® debit cards. Simply use your debit card to purchase what you need or want, and the money will be deducted directly from your checking account.If you lose your Credit Union of Colorado debit card, you can receive a new card in branch or virtually, but when cash is lost it is gone forever.
5. Zero Debt
Paying cash isn't the only way to avoid debt. Debit card users can experience some of the benefits of using a credit card while avoiding potential credit hiccups. For example, there's no chance of accruing interest or debt since there is no balance to carry from month to month. Since debit purchases are limited to the amount in your checking account, you're not borrowing money or accruing interest on a balance in the way you might with a credit card.
Open an Everyday Checking Account today and experience the benefits of using a Credit Union of Colorado Visa® debit card. Cardholders can virtually store their Credit Union of Colorado debit and credit cards in our secure Cards App which allows personal control over card usage.
