Compare debit cards

What is a debit card?

When you open an Australian bank account, the bank will issue you a debit card to use as a way to access your money. You can use your debit card to get cash out at ATMs, make purchases in stores and online and manage your money via the linked mobile banking app or Internet banking.

Almost every debit card in Australia will use either Visa or Mastercard, however this is just branding and there are no real differences between the two.

What to look for in a debit card

Here are some of the features you should look out for when comparing debit cards:

No account fees

Some debit cards will charge ongoing fees. When comparing cards, first check what fees the debit card charges and try to find one with lower fees (or no fees at all).

Common fees include monthly account keeping fees, ATM fees and overdraft fees (which is a fee you'll pay if you let your account go into negative balance).

Overseas fees

If you're planning to use your debit card overseas it's a good idea to choose one with no international transaction fees and, if available, no overseas ATM fees.

You may even want to apply for a separate debit card that charges no foreign transaction fees that you use exclusively for travelling.

ATM network

If you withdraw cash a lot look for a debit card that has no local ATM fees, or has free access to a large number of ATMs via its ATM network.

Contactless technology

Most new debit cards today enable you to make tap-and-go purchases without having to swipe your card or enter a pin. This feature lets you pay for items, usually costing $100 or less, by just holding your card to the reader.

Mobile app

These days, almost all debit cards can be managed via a mobile banking app, so you can check your account easily anywhere at anytime via your phone.

It can be useful to find a bank that lets you change your PIN, put a block on your card or even apply for a new card straight from its app to save you having to go into a branch or call the bank directly.

Visa or Mastercard

As you're probably aware, Visa and Mastercard are the two major payment processing companies. The vast majority of debit cards will be issued by one of these providers.

Choosing either a Visa or Mastercard debit card can give you more flexibility and benefits and are supported all around the world.

Keep an eye out for special offers

Some bank accounts will occasionally have special offers like a cash bonus when you open an account, a cashback offer when you shop or the ability to earn points and discounts.

Just make sure the card doesn't charge you fees that outweigh any benefits you get from having the card.

Multiple debit cards

"You can choose to have multiple debit cards for diferent purposes. For example, I have one debit card for my own spending and another that's linked to a joint account with my husband which I use for things we're buying together.

If you travel a lot, or often shop online from overseas retailers, you might want a seperate debit card for this that doesn't charge international transaction fees.

Just make sure you choose debit cards with no monthly account fee, otherwise the cost of multiple cards could add up."

Alison Banney

Editorial Manager, Money

How does a debit card work?

A debit card lets you use the money that's available in your bank account. You can use the card to pay for things in stores, cafes and supermarkets by inserting the card into the EFTPOS machine and entering in your 4-digit PIN.

Most debit cards these days also come with contactless payment functionality, meaning you can simply tap or hover your card over the EFTPOS terminal to make payments without having to enter your PIN.

When you've made a payment using your debit card it will often display as 'pending' in your mobile banking app transaction history until it clears with the merchant (this can happen instantly or within a couple of days).

If you don't have enough money in your 'available funds' you won't be able to make payments with your card, it'll be declined on the spot.

What's the difference between a debit card and a credit card?

A debit card is linked to your transaction account, so the money available for you to spend using your debit card is only what you actually have in your bank account.

A credit card is lets you access money borrowed from the bank (up to your credit limit), which you need to pay back in full each month or you'll be charged interest on the amount you've spent.

With a debit card, you aren't charged interest on the money because it's not borrowed money - it's your money.

Different types of debit cards

Most debit cards are fairly similar, however some do have particular features that make them better suited to different people.

• Student debit cards: Student bank accounts charge no account keeping fees and can offer features such as cashback perks and budgeting tools.
• Kids debit cards:Kids debit cards are offered by some banks as an optional extra when establishing a kids, youth or teen transaction account.
• Business debit cards: A business bank account and linked debit card can help you manage your day-to-day spending and cashflow.
• Travel debit cards: A great travel debit card will charge no international transaction fees and no overseas ATM fees.
• Reward debit cards: Some debit cards allow you to can earn various rewards including points, cashback offers and waived fees.
• Prepaid cards: Prepaid cards are usually used for travel, as it allows you to pre-load the currency you need onto the card. These cards only allow you to spend what's on the card, however, they're unlike regular debit cards because they're not attached to a bank account and therefore don't have the same level of protections.

Pros and cons of a debit card

Pros

• Easy access to your money. A debit cards lets you easily and instantly access your own money to make day-to-day purchases or withdraw cash at ATMs.
• No repayments. Because you can only spend what's in your account, you don't need to worry about meeting any repayments or being charged interest.
• Worldwide use. You can use your debit card in Australia and all over the world, making it easy to purchase things while travelling.
• Online purchases. You can use your debit card for online purchases as well as purchases over the phone.

Cons

• Only use what's in your account. If your balance is too low to make a purchase, you won't be able to use your debit card until you add more money into your account.
• Fees. Debit cards do come with various fees and charges, although you can avoid a lot of these when selecting your account.
• No frequent flyer points. Unlike many credit cards, debit cards don't offer the ability to earn frequent flyer or reward points.

How safe is a debit card?

Debit cards are very safe, and here are a few reasons why:

• You can't overspend: You can only spend what's available in your bank account, so you can't put yourself into debt with a negative balance.
• PIN protected. You need a 4-digit PIN to make purchases with your card (unless using tap-and-go) which only you should know. You can change your PIN at any time if you feel it's been compromised.
• Government guarantee: Your deposit up to $250,000 in an Australian bank account is protected under the Australian government's bank guarantee scheme, so if something were to happen to the bank your money would be safe.
• Freeze your card: If you've misplaced your debit card you can temporarily freeze or lock it (usually via the mobile app) so it can't be used for any purchases until you've found it.
• Bank's monitor for fraud: The banks have fraud protection systems in place to constantly monitor customer accounts for any suspicious activity or unusual transactions.

One of the biggest risks with a debit card is sharing your PIN or losing your card and not locking it in time. According to Moneysmart, if someone makes unauthorised transactions on your card you're less likely to have the bank reimburse you if you didn't keep your PIN secret, accidentally left your card in an ATM or delayed telling your bank that your card was lost or stolen.

How to apply for a debit card

It's easy and quick to apply for a debit card - all you need to do is complete the online application form on the bank's site. As debit cards come attached to an everyday transaction account, when you complete the application you'll be opening a new transaction account which will come with your debit card.

You'll need to meet some basic eligibility criteria to get a debit card in Australia.

Frequently asked questions

• Does Finder compare joint debit cards?

  Yes, our joint bank accounts page lets you compare bank accounts that can be opened in two or more names. You'll each get your own debit card, linked to the same account.

• How do I know if my debit card has tap-and-go functionality?

  Take a look at your debit card and see if it has the payWave or PayPass symbol on the front. If it doesn't you can call your bank to get a new card.

• What is the CVV number on my debit card?

  The Card Verification Value (CVV) is a 3 digit number found on the back of your debit card. On American Express debit cards, the CVV is four digits. This number is used to verify your debit card and helps to reduce fraud, by proving to the merchant that you have the physical debit card with you when making a purchase online or over the phone.

• What do I do if I've lost my debit card?

  The first thing to do is contact your bank and freeze your card. You can usually do this in your mobile banking app or Internet banking, but if you can't find it just give your bank a call. This guide can help if your bank account has been hacked.

• Do debit cards offer savings interest?

  Typically no, you won't earn interest on the money in your bank account. If you're looking for an account that pays interest a savings account could be better suited, however keep in mind that savings accounts don't have debit card access.

• Do debit cards have limits?

  There are various limits to look out for with your debit card, and these will change from bank to bank. For example, you might have a daily limit on how much cash you can withdraw from an ATM, or how much you can transfer at one time.

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To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten as part of our fact-checking process.

Written by

Alison Banney

Editorial Manager, Money

Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 638 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living