Discover the versatility and security of modern debit cards.
Who doesn’t love a good bargain or getting the most mileage for their money?
The fact is most people relish finding the best deal in town. So why do credit cards and mobile wallets often steal the spotlight when debit cards have so much to offer?
One reason is the many misconceptions about debit cards, despite their prevalence and perks.
From security concerns to doubts about their benefits, these myths might be stopping people from getting the most bang for their buck.
To clear up the confusion, here are seven common myths that may be preventing card holders from reaching their money mastery potential.
1. Debit cards are mainly for ATM cash withdrawals
Some believe debit cards are just for ATM withdrawals, but that would be like saying smartphones are only for calls.
In reality, they are much more versatile and people use debit cards for everything—online shopping, dining out and paying bills.
Most debit cards from major Asian banks are linked to international networks like Mastercard, which means you can use them almost anywhere in the world where card payment is accepted.
2. Debit cards only work with domestic currency
This idea is false. Debit cards work worldwide, automatically converting currencies for you.
Many cards link to multi-currency accounts, allowing you to switch between currencies or lock-in exchange rates to stay on budget.
Plus, they often offer perks like zero-fee conversions and free overseas ATM withdrawals.
So, whether you're buying batik in Bali or perfume in Paris, the debit card has you covered.
3. Debit cards do not offer rewards
Think only credit cards have rewards? Think again.
Banks across Asia now offer reward programmes for debit card users too, including cashback, discounts among other perks.
For instance, in Malaysia, Alliance Bank awards 1% cashback on overseas spending while Bank Muamalat offers 1% cashback at grocery stores, supermarkets and pharmacies through its debit card campaign.
Usually, each banking institution will have its own debit card rewards as well as terms and conditions.
4. Debit cards do not offer protection against fraud
Worried about debit card security? Modern debit cards are equipped with advanced security features like EMV chip technology, Personal Identity Number (PIN) verification, real-time SMS alerts and two-factor authentication (2FA), which can make it much harder for fraudulent activities to occur.
Mastercard debit and credit card payments are processed on the same network, which means they are protected by the same advanced security features and anti-fraud protection.
Additionally, most debit cards also offer liability protection, with banks often providing zero or limited liability on fraudulent transactions, protecting card users against unauthorised charges.
Some cards even offer protection for e-commerce purchases, in case issues arise such as non-delivery of items.
Debit cards integrate seamlessly with mobile payment technologies for secure transactions.
5. Debit cards do not work with mobile payment apps
Many believe mobile payment apps like Alipay, Samsung Pay, Apple Pay, or Google Pay only work with credit cards.
However, most debit cards can be linked to these apps to make secure, contactless payments with the cardowner’s smartphone or smartwatch, while still enjoying the same advanced security and purchase protections.
6. Debit cards are for people who cannot get credit cards
There is a common misconception that debit cards are just for those who cannot get a credit card.
In reality, many people in Malaysia who have a credit card (or cards) also use debit cards to manage purchases and stick to a budget.
In places where financial inclusion is growing, and people are gaining access to financial services, debit cards often serve as the first step into the formal financial system.
Debit cards are a great way to manage finances responsibly as the user can only spend what they have.
7. Debit cards have hidden fees and annual charges
Many avoid debit cards, thinking they come with hidden fees and annual charges; but these worries are outdated.
While some banks may charge for ATM withdrawals or currency conversions, these fees are usually transparent and upfront.
Actually, most debit cards charge minimal or no transaction fees, making them accessible to most customers.
With these seven myths debunked, the bottom line is that debit cards are convenient, versatile, and a rewarding option— especially if one knows how to use them.
Consider how debit cards can be a valuable part of effectively managing finances.
