To avoid fees and interests that are inherent in credit card accounts, many people have embraced debit cards. This card, also known as a bank card, can be used almost anywhere in the world. An individual can own cards that are directly connected with a checking or savings account, while other forms of these cards allow consumers to buy cards for a certain amount to use instead of cash.
Money can be withdrawn directly from automated teller machines with debit cards. When making a purchase, many stores allow their customers to add on cash amounts to the transaction so that the customer can get cash back.
Travelers find that it is more convenient to use a debit card to withdraw money in foreign countries than to carry their native currency and exchange it in banks or currency exchange booths, which usually charge a fee. By using your card to obtain foreign currency, a customer gets the exchange rate of the day, which is calculated and noted in your bank statement.
These cards can also be used for online purchases much like a credit card. In fact more and more people are ditching cash and using debit cards exclusively. In the rare instances where they need cash, they can just go to an ATM machine to withdraw. Note however that debit cards are usually associated with a certain bank, so taking money from an ATM which is not affiliated is not possible. In fact, most banks charge a fee to allow customers to withdraw even if the ATM is affiliated but not within its own brand.
Usually, cardholders have set limits on the amount of cash money that can be withdrawn on a daily basis. When traveling, your banking institution should be notified in advance. Banks keep a close eye on unusual transactions and usually freeze your account when suspect transactions appear.