Several advantages of carrying the card
There are no interest rates or dues, and are accepted at many outlets
Financial advisers are unanimous in saying that consumers are much better off when they use ATM or debit cards.
They agree that debit cards are more practical than credit cards in the sense that they eliminate the need to pay interest rates and monthly dues.
Most debit cards are issued to bank customers for free and holders don't normally pay maintenance charges. However, there are certain fees to be aware of (see separate story).
Debit cards are accepted in thousands of sales locations in the country and they include shops, restaurants, coffee shops and cinemas. For instance, HSBC's debit chip cards are accepted at over 40,000 retail outlets in the UAE alone and at over 25 million retail outlets worldwide.
They can also be used at Etisalat, du and Dewa, provided the transactions are carried out by the cardholder, or the card is physically used on the point-of-sale machine. Some banks, however, don't offer online payments yet.
Same technology
Sanjoy Sen, Citibank's consumer bank head for the Middle East, confirms debit cards are widely accepted, as the technology and machines used for debit transactions are the same as the ones used for credit cards. "So, wherever a credit card is accepted, a debit card is also accepted," he says.
"[With debit cards], you cannot spend more than the money in your account. A thief cannot spend more than the money in your account and the bank allows you to spend your own money, so you are not in debt to the bank and cannot get into trouble for failure to repay the bank at some future time," says Steve Gregory, managing partner at Holborn Assets.
Sandi Saksena, financial planner and member of Million Dollar Round Table, an association of financial professionals, says she can't think of any disadvantages of using debit cards.
"Debit cards are infinitely better. There are no interest charges to pay… They are for your convenience. Here, the onus lies entirely on the user," Saksena tells Gulf News.
However, for those who are terrible at controlling their cash outflow, they are advised to use debit cards sparingly.
"A good tip is to use cash only at the supermarket. This will act as a restraint and you will not be tempted to dump stuff in your shopping cart just because it looks nice, is new, or you always wanted that," suggests Saksena.
"Stick to the list, assuming you have one, before you enter the supermarket. That way you will remain within budget and will not be embarrassed at the checkout… If you go shopping and cannot control your urge to spend, then yes, you will drain your account," she adds.
