A debit card operates in much the same way as a credit card, meaning that you can use it at most point-of-sale terminals, as well as online or over the phone. However unlike a credit card, debit cards use funds from your transaction account.
This means that the funds paid using a debit card are transferred immediately from the cardholder's transaction account rather than having to be repaid at a later date, in which case may even accrue interest.
Debit cards are a popular alternative to carrying cash too as they provide convenience to the cardholder and offer greater reach than cash in some cases. They can be used for online shopping, for EFTPOS and at most places where credit cards are accepted.
This type of card usually allows for instant cash withdrawal, so it acts as an ATM card. Some merchants will even allow debit card holders to withdraw cash via their card at the point-of-sale terminal, at the time of making a purchase. So clearly, debit cards are a very flexible alternative to cash or credit cards.
That's likely why debit card popularity has exploded around the world, and in many cases replaced cheque accounts.
Get the best card for your situation
So if you're in the market for a debit card, then you've come to the right place. At RateCity we've compiled some of the best transaction accounts with debit card facilities from a range of institutions. So you can compare transaction accounts to ensure you're getting the best everyday account and debit card for your situation.
It's easy to compare; all you have to do is visit our transaction accounts page and complete a few basic fields of information about your average balance and your spending habits and click 'find an account'. You'll be given an instant assessment and list of suitable transaction accounts, which you can compare by interest rate and fees. Or select up to six accounts to compare transaction accounts side-by-side for greater detail.
If you'd like more information or tips about transaction accounts or debit cards you can check out our transaction accounts guide. Or visit our transaction account news page for the latest information on transaction accounts.
Start searching for your debit card companion by comparing some of Australia’s best transaction accounts at RateCity.