The defects of offshore debit cards and their effects

Most people might have read about the flexibility of the debit cards. It is a very good idea to replace the debit card for every use of the credit card. But it is not very easy to execute the idea. Most e people are not aware of the fact that there is a downside of using a debit card. There are lot of banks which will charge an overdraft when you make charges on the debit card.   

No one likes to get overdrawn in their account in the bank because of the over draft fee and the effect it makes on the credit score. But the banks have made the complete process much easier through debit cards. The banks are taking advantage of persons who dislike using credit cards because of the interest charged on the cards every month. The bank is getting enough money it requires from the customer.

If a ten dollar purchase is made on your debit card and your account had only 9.54 dollars in it, the price will be same while you write a check for the purchased item. The banks can reject the transfer of funds to your debit card as in the same way your credit card is rejected. The banks will opt not to make rejection as it will make a reduction in the overdraft fees.

Most of the people do not understand the fact that when the debit card is being used, the banks will make immense profit. The shop in which you used the card will pay a hefty fee in order to get the card processed. The main logic behind this is if the shops receive more debit and credit cards, the shops achieve more business along with the profit. One must observe one’s account balance in order to avoid the fees that are charged for overdraft. If you continue keeping an eye on your account, you can continue using debit card for a long time. There are a lot of people who have a specific skill to control the finance effectively. Other wise, it is advisable to use cash for each and every transaction you do until you learn to manage your money skilfully.  

In some places they put a hold on the account in order to ensure payments. As compared to the credit cards, people will not have the same safety from frauds and unscrupulous merchants.

In some cases credit cards offer several services such as cash back rewards. In credit cards, you can protect your liabilities in a better way. This is in the case of the assets are going out of your control. Despite being overcharged by the banks, they are also having holds kept on their accounts. Thus it is always not possible to use debit cards for everything and in place of credit cards. In certain kinds of pruderies, banks might not be able to help the person if he or she owns a debit card. But in the case of credit cards, they might be able to take more action.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.