A debit card is a convenient means of payment. But reviews show that the fees charged for ATM usage and other transactions have been on the rise over the years. There are a few things you can do to avoid high fees when using a debit card. We are going to discuss some of the simple ways through which you can avoid the high fees. Since paying for transactions with a debit card is also safer, it is likely to remain a favorite means of payment for many customers. But they will be looking for alternatives that reduce the cost of using it.
Here are 4 tips to avoiding fees when using a debit card:
- Electronic cash transfer
E-commerce is increasingly becoming a popular trend in online trade. It is not only convenient but also makes it possible for one to review a variety of products available making it easier to choose the best. When paying for online goods or services with a debit card, you are not charged any fees. PayPal and payTM have also become popular cash transfer options. You may transfer cash from your debit card which is linked to an account and then to your smartphone. This way, you may make payment directly from your phone hence minimal charges are applied. You save some money using this method.
- Compare prepaid cards from different banks
Different banks apply different fees on their prepaid cards. Prepaid cards are more popular nowadays. Even the smaller banks are offering them. Through online reviews, you may identify prepaid cards that have lower fees. Mainly, smaller banks, credit unions, and brokerage firms offer debit cards that have minimal or no fees at all. Comparing various debits card online will help you choose the best cards that do not attract high fees.
- Pay cash
Though this option may not work for online payments and big transactions, it still remains one of the best options for you. For financial discipline, it is also good since you will budget and carry exact money needed to do shopping. Shopping with cash enables you to avoid impulse buying which goes against the budget. When you pay cash at major stores, you may get a discount which helps you save some money.
- Blockchain
Blockchain technology is the latest digital payment method. Recently big corporations including Samsung, Facebook and Google have joined the investment team. They have invested a considerable amount of wealth in the blockchain. This shows that with time, blockchain will be the mode of trade for the world economy. The blockchain is a big threat to banks. It offers most of the services offered by banks without any form of centralization. That is why, due to the reduced cost of labor, most of the services and payments you make through blockchain do not attract any charges.
To avoid debit card charges, you may consider the options given above. You will find ways to avoid paying higher fees when you make a purchase with your debit card. In this digital era, you should also watch out for advanced payment options yet to be launched.