No Gimmick - No Annual Fee Debit Cards!

There are a lot of promotions for a no annual fee debit card being offered, and these special promotions are by no means a gimmick. This article explains why these debit cards are the real thing.

It is becoming more common to see a debit card that has no annual fee attached to it than a card that still requires that this annual fee be paid. Since credit cards and debit cards are issued by the same card providers and banks, debit cards followed the same route as credit cards in the past and charged this yearly fee.

No annual fee debit card

Debit card users are encouraged to use their debit card since there are no transaction costs to pay when using the card to make a purchase. The debit card has replaced such systems as checks and EFTPOS, which are charged for every transaction made. It can even cost money to withdraw cash. With a debit card, however, the merchant has to pay the card processor in order for the transaction to be processed. This fee is not directly borne by the consumer or the bank.

Nowadays most debit cards do not come with an annual fee. Taking the annual fee out of the card attracts more consumers, especially those that already have a debit card.

Many debit card providers disguise the fact that there is no annual fee by charging a monthly fee for the account. Some banks do not charge this monthly fee as long as a minimum amount is distributed monthly. This amount is usually around $2000.

There has been a surge of premium debit cards that are similar to the offers on a Gold or Platinum credit card. They are usually connected to a full service account and almost all of these prestige cards still charge an annual fee.

One of the benefits of having a debit card with no annual fee is it is accepted overseas wherever credit cards carrying the same logo are accepted. MasterCard and Visa are accepted worldwide at over 30 million locations. Also, if any unauthorised transactions appear on the card, MasterCard and Visa will not hold the cardholder liable.

You can find many offers for a no annual fee debit card, and they are not gimmicks. A debit card offers the same flexibility as a credit card, without the fear of getting in debt.