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. Usually the debit card will be either Visa or Mastercard, however this is just the branding and there are no real differences between the two.
The 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 etc. by inserting the card into the EFTPOS machine and entering in your 4-digit PIN. Or, most debit cards these days come with contactless payment functionality meaning you can simply tap or hover your card over the EFTPOS terminal to make payments without entering your PIN.
When you've made a payment 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.
You can use a debit card for pretty much everything these days. This is not an exhaustive list, but here are some common examples.
A debit card is linked to your transaction account, so the money available to spend using your debit card is only what you have in your bank account. A credit card is borrowed money from the bank, which you need to pay back in full each month or you'll be charged interest on the money. With a debit card, you aren't charged interest on the money because it's not borrowed money - it's your money.
At Finder, we've been comparing debit cards for more than a decade. Here's what to consider when choosing your own card.
Check what fees the debit card charges and choose one with fewer fees if possible. Common fees include monthly account keeping fees, ATM fees and overdraft fees (this is where you let your account go into negative balance).
If you're planning to use the debit card overseas it's a good idea to choose one with no international transaction fees and, if available, no overseas ATM fees.
Choosing either a Visa or Mastercard debit card will increase the flexibility and benefits, as these two card suppliers are supported all around the world. The high majority of debit cards will be by one of these providers.
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.
Most new debit cards today enable you to make tap-and-go purchases without having to swipe your card or enter a pin. The feature lets you pay for items, usually costing $100 or less, by holding your card to a reader.
Some bank accounts 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.
Check the bank account comes with a mobile banking app so you can check your account easily anywhere at anytime via your phone.
Most debit cards are fairly similar, however some do have particular features that make them better suited to different people.
Debit cards are very safe, and here are a few reasons why:
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.
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.
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hi
Is there a debit/master card where I can have multi cards (a card for my partner and myself) and can earn Qantas points or rewards points?
Thanks
Hi there!
Thank you for contacting Finder.
Regarding your question, thankfully there. We have a list of credit cards with free additional cardholders. Please go to that page and you’ll find credit cards that will also allow you to earn Qantas Points and/or other rewards points.
I recommend that you check the details of the credit card you’re interested in, its eligibility criteria as well as the Product Disclosure Statements/Terms and Conditions before you apply.
Also if you can, contact first the issuing bank and discuss your options and chances of approval before you send anything final for your application. Just apply for one credit card at a time and ensure your eligibility before submitting your final application. This way you can avoid credit enquiries on your file.
I hope this helps.
Cheers,
Danielle
Are there any banks issuing access cards for everyday transactions that do not have the PayWave or contactless pay attached? I have been burnt already by Pay N Go type card and it’s very inconvenient. I don’t want it but my current bank said it can’t issue any card now without this as it’s set by Visa!
Hi Mary!
Mastercard Paypass and Visa Paywave is an in-built credit and debit card technology that lets you make contactless payments. You can tap your card against the contactless reader and purchases under $100 are processed in seconds. There’s no need to enter your PIN. This also helps prevent card fraud.
It will be hard pressed to find a debit card that is not contactless. However, there may be travel cards that don’t have this feature. You can find them in our page that lists travel money cards. This page also includes the full-guide about how this may be an alternative.
Hope this helps.
Cheers,
Jonathan
Pl advise best debit card for use overseas with zero or min transaction and or other fees. Prefer ANZ, CBA or NAB but would like comparison of other inexpensive cards.
Impending overseas trip to Asia including South Korea & Japan.
Thanks
Hi Kevrub,
Thanks for your question.
If you are travelling to Japan and other countries in Asia, you may want to compare your debit card options in Southeast Asia. We also have useful travel money tips on the same page.
Cheers,
Anndy
I don’t have a drivers license and was hoping my DSP health care card from centrelink would suffice ? Or a NZ issued passport ? Thank you for your help ,
Hi Anton,
Thanks for your question.
If you are looking to apply for a debit card, the requirements may differ among the different providers. For most debit cards, you can use any two forms of the following identifications:
– Driver’s licence
– Passport
– Medicare card
– Birth certificate
You can check the details of the requirements and eligibility criteria to apply for a particular card by clicking its name on our comparison table above.
To check the card’s terms and conditions and open an account, you may click the ‘open’ button.
Cheers,
Anndy
Does anz ATM machines have cardless withdrawal
Hi Kevin,
Thanks for your question.
Currently, only Commonwealth Bank, Westpac, and St. George have cardless cash withdrawal options.
Please read our cardless cash guide to learn more about how withdrawals work.
Cheers,
Anndy