What Is A Debit MasterCard?
A Debit MasterCard gives cardholders access to the convenience of a MasterCard without the pitfalls that can come with a traditional credit card.
With the increasing popularity of online shopping, many Australians have the need for a Visa or MasterCard, but not everyone wants or qualifies for a credit card. This is where the Debit MasterCard comes in.
By using a Debit MasterCard you can shop anywhere that accepts a credit card without actually having a credit card.
A Debit MasterCard must be linked to a savings account with the same bank or credit union, and all purchases will be funded from that account just like a traditional Eftpos bank card.
Features and Benefits
In many ways the main benefit of a MasterCard comes down to the fact that it is so widely accepted.
Unlike a traditional ATM or Eftpos card, a MasterCard can be used for online shopping as well as ordering over the phone. It can also be used overseas where Eftpos is not accepted.
Many newly issued Debit MasterCards also come with contactless payment technology. MasterCard’s PayPass technology allows cardholders to make payments of up to $100 without having to swipe or enter a PIN.
Who Does It Suit?
A Debit MasterCard will suit almost anyone, but typically they are popular with people who do not wish to hold a credit card, as well as those who do not qualify for a credit card due to their credit history or financial situation.
Because there is no credit element to a Debit MasterCard, there are no credit checks and no need to validate your income or other financial details.
Debit MasterCards are also a popular option for parents wishing to give their children convenient access to money without taking the risk of giving access to potentially thousands of dollars of available credit.
For parents looking for further control over their children’s spending, MasterCard also have a prepaid card available which is limited to the amount of money which has been loaded onto the card.
Debit MasterCard Providers
Most of the major banks and credit unions now offer the Debit MasterCard as a part of their product range, and in many cases they can be linked to both personal and business transaction accounts.
There are a number of institutions which do not offer MasterCard, however they will generally offer Visa in its place. These institutions can offer the Visa Debit card with many of the same features and benefits.
Choosing a Debit MasterCard
Although the Debit MasterCard is offered by a range of banks and other financial institutions, the features and benefits of the card are generally no different regardless of where you obtain your card from.
Of more importance to most cardholders will be the savings account to which the Debit MasterCard is linked, as it is the account which will attract the fees and charges rather than the card itself.
If your bank or credit union does not offer the option of a Debit MasterCard, then it may be worth shopping around to find a bank that does. You can of course compare debit cards right here on the Money Buddy website.