Embracing debit cards
In today’s digital age, the use of debit cards has become increasingly prevalent, revolutionizing the way people conduct their financial transactions. With advancements in technology and the rise of online banking, debit cards offer numerous advantages over traditional cash payments. Nilmini Premalal, the Deputy General Manager: Payment, Process Management and Quality Assurance, at People’s Bank discusses the benefits of using debit cards and highlights why individuals should consider limiting their cash transactions.
One of the primary benefits of using a debit card is the convenience it offers. Carrying cash can be burdensome, as it requires finding exact change, counting bills, and ensuring its safety. In contrast, debit cards provide a compact and secure method of payment that can be easily carried in a wallet or purse. They enable users to make purchases at any time, whether in-store or online without the need for physical currency.
Debit cards provide enhanced security features compared to cash transactions. With cash, there is a higher risk of theft, loss, or misplacement. On the other hand, debit cards can be protected with a personal identification number (PIN), making it difficult for unauthorized individuals to access funds. Today debit cards are widely used to perform e-commerce transactions protected by 3D secure technology, which is an essential security protocol meant to prevent fraud in card transactions that take place online. If the debit card issuing bank has activated 3D security, when customers shop online at a participating merchant they are automatically recognized as protected by this feature.
Moreover, most debit cards are associated with financial institutions that offer robust fraud protection measures, including monitoring transactions for suspicious activity and providing immediate assistance in case of fraudulent charges.
Another benefit of using debit cards is the simplification of record-keeping and budget management. Every transaction made with the People’s Visa / Master / LankaPay JCB Debit card generates an electronic record, which can be easily accessed through online banking platforms or the People’s Wave mobile app. This feature allows individuals to review their spending patterns, track expenses, and analyze their financial habits more effectively. Additionally, debit cards can provide real-time balance information, helping users make informed decisions about their available funds and avoid overspending.
Post covid, there has been a growing emphasis on contactless payments to maintain hygiene and minimize the spread of germs. Debit cards, particularly those equipped with near-field communication (NFC) technology or mobile payment options, facilitate secure and touch-free transactions. This feature reduces the need for physical contact with payment terminals or the exchange of cash, providing added peace of mind in public settings.
While cash remains a widely accepted form of payment, there are several reasons why individuals should consider reducing their reliance on cash transactions which require them to withdraw money from ATMs or banks, which may involve additional fees or inconveniences. As the world becomes increasingly interconnected, digital payment systems, including debit cards, are becoming more prevalent, necessitating a shift toward embracing cashless transactions.