The Power of Plastic

August 11, 2023

by Christian Phillips

Debit and credit cards are dependable and convenient options for completing in-store and online transactions. Here are some differences and advantages to help you gather more of an understanding of both products.

How do they work?
While debit and credit cards look similar, the origination of funds to complete transactions differs.
  • Debit Cards: When consumers initiate debit card transactions, funds are originated from your attached checking account.
  • Credit Cards: Credit card transactions allow consumers to borrow money from the issuer.
Credit Card Advantages:  
Here are a few benefits of having a credit card.
  • Rebuilding/establishing credit.
  • Cover unplanned expenditures (e.g., home repairs, car maintenance, medical expenses)
  • Reward programs (Cashback, travel, merchandise, and gift cards)
Credit Card Recommendations:
  • Pay the entire balance to avoid added interest.
  • Remain up to date on billing cycles.
  • Avoid “Maxing-out” the credit card.
  • Use for medical emergencies, travel, online purchases, and reservations.
Debit Card Advantages:
Quick, easy, and secure access to your finances on the go. Consumers can also use online or mobile banking services. The advanced technology offers various features, such as setting card limits, restricting transaction types, monitoring balance, and enabling notifications for updates on card activity.

Debit Recommendations:
  • Use for everyday spending habits.
  • Avoid online purchases if possible; use a credit card.
  • Take advantage of the Digital Wallet features.
  • Utilize the MoneyPass ATM Locator to access the vast network of surcharge-free ATMs.
 
[Final Thoughts]
Whether you choose debit or credit for your purchases, Frandsen Bank & Trust has you covered. Check out some of your options here or contact your local Frandsen Banker today!
Credit Card
Debit (CHECKING ACCOUNT OPTIONS)
 

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