If you are not good at paying your monthly bills, then, it will be advisable to opt for a debit card rather than a credit card. A debit card works like a credit card, except for the fact that for debit ones, what you have spent is directly deducted from your savings account. It is like a bridge between your savings account and your expenditures, so paying for monthly credit card bills is not necessary.
It is like a modern form of check, but instead of paper check a plastic card is used. The card can also be used in withdrawing cash in various automatic transaction machines as it is directly connected to your savings account.
Upon acquiring a debit card, it is a must that you have a savings account so the expenditures would be directly deducted from it. In some banks, they usually offer this application upon opening of a regular savings account. This card can also be a dual purpose card; whenever you use it in purchasing items, you will be asked if you want it as a debit or credit. Choosing for debit means that the amount of the item will be directly deducted from your savings account and opting for credit will mean that the amount of the item will be added to your monthly credit card payments. In cases that the savings account run out of money and you have enabled the bank to connect a credit card to your card, you can still do transactions with your card as the unpaid expenditures will be summed up on the end of the month for your monthly credit card bill. This regulation will give you more power in managing your expenditures and transactions.
There are three types of a debit deducting system: the offline debit, online debit and the e-purse system. In offline debit, an online transaction is not required, thus, a PIN is not requested. The amount of money used for purchasing will be deducted to the account after two to three days. This kind of debit system usually have corresponding fee on the debit reflection process. The online debit type, on the other hand, requires a personal identification number upon using the card in every transaction. This is needed in order to connect the card securely in online card processing. The amount of money used is immediately reflected and deducted on your account. Lastly, in e-purse system a separate electronic savings is connected to your card. This can be replenished through the funds that you have in your account.