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Learn how debit cards work in online transactions

Debit cards are fast becoming one of the most popular ways to pay for online transactions. Why the change and what is the difference between this and the EFTPOS system?

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In the early days of Internet shopping people would use either credit cards or the EFTPOS system. Although you can still in come cases use EFTPOS to make online purchases, very few companies accept this form of payment.

One of the big reasons vendors do not like this system is because it can only actually be used by Australians. Therefore any companies abroad would have to jump through many hoops in order to accept this kind of payment method.

Something that also hindered the use of the EFTPOS system, was that many websites use special shopping cart software in order to accept online transactions, and most of the software available was not compatible with the system, meaning many vendors stopped using it.

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HSBC Everyday Global Account

HSBC Everyday Global Account

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Special offer: $100 cash bonus for new HSBC customers.
Earn 2% cashback on tap and pay purchases (T&C's apply).
Enjoy no minimum ongoing balance or transaction requirements and the flexibility to hold up to 10 currencies. Apple Pay and Google Pay available.

  • Monthly account fee: $0
  • Linked debit card: Visa
  • ATM withdrawal fee: $0
  • Overseas EFTPOS fee: 0%
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Data indicated here is updated regularly
$
Name Product Card access ATM Withdrawal Fee Fee Free Deposit p.m. Monthly Account Fee
HSBC Everyday Global Account
Visa
$0
$0
Special offer: $100 cash bonus for new HSBC customers.
Earn 2% cashback on tap and pay purchases (T&C's apply).
Enjoy no minimum ongoing balance or transaction requirements and the flexibility to hold up to 10 currencies. Apple Pay and Google Pay available.
Westpac Choice
Mastercard
$0
$2,000
Special offer: $50 cash bonus for new customers (T&Cs apply).
$5 waivable monthly account fee.
Monthly account fee waived if you deposit at least $2,000 a month, are under 21 or if you meet other eligibility criteria. Access more than 50,000 ATMs globally for free via the Global ATM Alliance.
NAB Classic Banking
Visa
$0
$0
Enjoy convenient, unlimited access to your money.
$0 monthly account fee.

Tap and pay with your NAB Visa Debit card or your phone using Apple Pay, Google Pay, Samsung Pay or NAB Pay for Android. Temporarily block your card at the touch of a button if you lose it.
Suncorp Everyday Options Account
Visa
$0
$0
Link up to 9 interest-earning sub accounts.
$0 monthly account keeping fees.
Earn interest on your linked sub accounts to help you save for individual goals, with no account fees to pay. Make contactless payments using Google Pay and Apple Pay.
MyState Bank Glide Account
Visa
$0
$0
Simplify your everyday banking with these sleek digital features.
$0 monthly account fee.
Choose the way you pay with access to Google, Samsung and Apple Pay plus Fitbit Pay and Garmin Pay. Send and receive money in less than 60 seconds with PayID.
St.George Complete Freedom Account
Visa
$0
$2,000
Special offer: $50 cash bonus for new customers (T&Cs apply).
$5 waivable monthly account fee.
Monthly account fee waived if you deposit at least $2,000 a month. No account fees for students and customers under 21.
P&N Bank & Transaction Account
Visa
$0
$0
Pay no monthly account keeping fee with no ongoing deposit conditions to meet. Link your Visa Debit card to Apple Pay, Google Pay or Samsung Pay to make contactless payments with your phone, and use PayID to send and receive money instantly.
CUA Everyday Snap Account
Visa
$0
$0
Refund of international ATM withdrawal fees and international card transaction fees (conditions apply). Refund of overdrawn fees.
$0 monthly account fee. Unlimited fee-free everyday transactions.
Apple Pay, Google Pay and Samsung Pay available. Savings Top Up tool automatically transfers to linked savings account.
Citi Global Currency Account
Mastercard
$0
$0
Earn up to 0.9% p.a. interest on your AUD balance.
$0 monthly account fee.
Enjoy one linked debit card to hold up to 10 currencies and receive foreign currencies for free.
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What about credit cards?

Credit cards, and debit cards are the main forms of online payment methods. Although in the early days the credit card was the most commonly used form of payment, it would now seem that debit cards are rising in popularity.

One of the main reasons is because using a debit card for online transactions can potentially be a much cheaper way of making purchases.

Like anything that you spend on your credit card, your purchases will be subject to an interest charge if your balance is not fully repaid at the end of your interest free period. In a very short space of time your balance can increase, and reach a level where you will not be able to pay your full balance in time, and so will begin amassing interest.

This means anything you paid for using your credit card could start going up in cost to you!

Learn more about credit cards.

Why debit cards?

The beauty of the debit card is that it is linked to your bank account and you are only ever able to spend what is available to you in your account.

Unless you have an agreed overdraft with your lender, any purchase you attempt to make with your debit card will be refused if there is not sufficient funds available, and an alternative form of payment will be asked for.

This makes it much easier to stay in control of your spending.

Credit giants Visa and Mastercard are both in charge of processing both credit and debit card transactions, so whichever you use should have the same security benefits as the other.

One thing is for certain, when compared to the EFTPOS system, and credit cards, the debit card is becoming the most common way to pay for your online transactions.

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