Debit cards are a convenient way to pay for your everyday purchases without carrying cash or using a dreaded credit card. But did you know there are still some major common misconceptions that you should be aware of.

Debit cards aren’t the same as credit cards.

Debit cards access your own money from your bank account, while credit cards let you access a pre-set line of credit. This means that you won’t be charged interest or fees, but you’ll be doing nothing to help build your credit history or score. As with most things in life – Less risk, less reward.

Despite the presence of major credit card company logos like Visa and MasterCard, debit cards are, in fact, not credit cards.

Debit cards aren’t the same as EFTPOS cards.

EFTPOS stands for Electronic Funds Transfer at Point Of Sale, and it is the system that allows you to pay for stuff using your bank card and a PIN. EFTPOS cards can only be used in Australia. Debit cards can be used overseas and online as well. EFTPOS cards also have less security features, such as chip technology and contactless payments (although recent advancements have seen this technology moving to EFTPOS).

Debit cards are definitely not the same as cash.

You’ll get some hefty benefits over cash, such as security, convenience and rewards. Plus, if you lose your debit card or in the even that it gets stolen, you can easily report it via the providers app and get a replacement. All without losing your hard-earned money. You can also shop online, pay bills and sometimes earn points or cashback with your debit card. Debit cards do have some drawbacks though, such as fees, limits and fraud risks. It’s good practice to always check your transactions and balance regularly and never hesitate to report any suspicious activity to your issuer.

Debit cards aren’t always accepted everywhere.

Although debit cards are widely accepted in Australia and around the world, there are still some places that do not accept them believe it or not. For example, some hotels, car rental companies, or online merchants may require an actual credit card for booking or security purposes. You should always check the terms and conditions before trying to use your debit card at a new place. This is especially true for car rentals, but the plus side is some credit cards feature car rental excess insurance.

Debit cards are certainly not risk-free.

Debit cards are safer than carrying cash that’s for sure, but they aren’t immune to fraud or theft. If you lose your card or someone steals your card details and you don’t realise, you could lose money from your account. Always protect your card and PIN, and report any suspicious transactions or activity to your bank as soon as possible. You should also check your bank statements regularly and keep track of your spending.

Debit card refunds are instant.

If you’ve been tapping your card while shopping and then check your account, you’ll notice that a more often than not the transactions will say “pending”. This is due to the way the payment rails have been set up, and how payments clear. If you need to get a refund, you might need to wait for the merchant to clear the payment to the bank, and then refund the process. This is not a major hurdle but one to be conscious of too.

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Debit cards are a great way to manage your money and pay for things easily and securely. However, you should also be aware of the facts and myths about debit cards, and use them wisely and responsibly.