Money and insurance

5 reasons to have a debit card

Not many Filipinos like the idea of a credit card. If you're one of the many who have yet to avail of one and will probably not avail one, why not consider a debit card?

Credit cards are way convenient. It allows you to purchase things online, pay in installments, and keep track of your spendings. But not all people are impressed by all the benefits a credit card offers. Most Filipinos, for instance, are not fans of plastic. Enter a debit card, which offers some of the same convenience.

According to various surveys, Filipino debit card use has been growing since 2013--doubling from 38 million that year to 71 million in 2018.

Moreover, debit cards dominate the overall card holding in the Philippines with 90.6 million debit cards in circulation compared to 8.6 million for credit and charge cards. According to GlobalData’s July 2021, Payment Cards Analytics, debit card dominates the overall card-holding in the Philippines. Currently, 90.6 million debit cards are in circulation compared to 8.6 million for credit and charge cards.

If these numbers aren't enough to convince you of the value of having a debit card (or at least a debit account), then these other benefits might.


1. It keeps you within budget.

Having a debit card is the best choice if you want to stay on budget. It prevents you from overspending because you can only spend the amount that is in your account.

It also makes you more accountable and conscientious about your spending habits. When you're shopping using a credit card, you sometimes don't feel like you're using up money. With a debit card, however, the money's already there. Seeing your hard-earned salary right there makes you stop and think: is it really worth it?


2. A debit card is incredibly convenient.

Debit cards, like credit cards, offer cashless transactions. You don’t need to carry that much cash because stores accept debit card transactions. If you do need cash, you can also use your debit card to withdraw from an ATM.


3. There is enhanced security.

Unlike credit cards, a PIN code protects debit cards, which means no one can access, withdraw, or make purchases using your card without knowing your number.


4. You can get bonus points.

Because of market competition, banks offer bonus points you can avail of alongside any purchase made using debit cards. It means you can spend your money and get gifts or rewards afterward.


5. You can skip the fees and service charges.

Debit cards don't have any charges or fees from late payments or transactions. The most extra "payment" you may have to fork over is the withdrawal fee, which changes depending on your bank, if you're doing an inter-bank transaction, or if you're coursing through digital wallets.

Follow these hacks to avoid those extra charges. Firstly, if it's not a cash emergency, make sure to withdraw money from in-network ATMs. You can also check with a store's cashback option when you're paying with your debit card. Cheers for every bit of savings!