Debit cards are often seen as a replacement for cheque books, but there are some advantages and disadvantages for both payment methods.

The first big difference between cheques and debit cards is the time required for actually removing the money from the account. In this process, a cheque has two delays, one between when the merchant receives the cheque and when it’s presented, and another due to processing the payment. If the cheque is sent by post, there’s likely a third delay, between when the cheque is sent and when it arrives. This leads to cheque floating, or buying a good a few days before payday, secure in the knowledge that the money won’t be withdrawn from the account for a number of days.

However, with a debit card the money is withdrawn from the account almost immediately, although with some accounts the funds may actually be settled at the end of the day. In some cases, for example with a good purchased over the internet, the package may be received a week or more after the bank account is charged.

Cheques can also be more useful than debit cards when paying for goods by post, as the cheque can simply be mailed out with an order form or invoice. With debit cards, a form must be filled in, which if lost or stolen will include all the information necessary for robbing the account. As well, the sum that can be stolen is limited if a cheque is fraudulently altered, but debit card details don’t provide this limitation. Finally, because a cheque has a named payee, it can be harder to exchange for cash.

However, debit cards are better for buying a good over the internet or phone. Cheques work best with invoices, which a debit card doesn’t need.

Debit cards tend to be easier to carry than cheque books, and less easy to forget. Often a debit card is used instead of a cheque simply because no cheque book is actively carried.

Debit cards can also be more secure, because they tend to be more actively monitored, both by the account holder and by the providing bank. Debit cards also carry zero liability guarantees, which mean that the account holder will not be charged if any unauthorised transactions occur.