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 an the EFTPOS system?

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.

Rates last updated June 26th, 2017
Monthly Account Fee Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Details
NAB Classic Banking
$0 monthly account fees.
Tap and pay with your NAB Visa Debit card, NAB Pay for Android or NAB PayTag for iPhone.
Visa $0 $0 $0 account keeping fees with no deposit conditions. Unlimited free withdrawals at NAB and rediATMs. Go to site More
HSBC Day to Day Transaction Account
Your Visa debit card unlocks special privileges worldwide with the HSBC home&Away Privilege Program.
Visa $0 $0 $0 account keeping fees. Unlimited free withdrawals at over 3,000 HSBC, Westpac, St.George, Bank of Melbourne and BankSA ATMs. Go to site More
Bankwest Easy Transaction Account
Get up to $50 cash back per month for new customers (conditions apply).
Click on "More" to see full conditions.
Mastercard $0 $2,000 $0 account keeping fees if you deposit at least $2,000 per month. Otherwise, a $6 monthly fee applies. Unlimited free withdrawals at CommBank, NAB, ANZ, Westpac, St.George, Bank of Melbourne and BankSA ATMs. Go to site More

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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