Learn How Debit Cards Work in Online Transactions | Finder

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?

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

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.

Promoted
Bank account offer
HSBC Everyday Global Account
Promoted
$0
monthly fee
$0
ATM withdrawal fee
  • Google Pay, Apple Pay
  • Monthly fees: $0
  • No international transaction fees
  • Up to 10 currencies

HSBC Everyday Global Account

Special offer: $100 cash bonus for new HSBC customers. Earn 2% cashback on tap and pay purchases (T&C's apply).
Special offer: $100 cash bonus for new HSBC customers. Earn 2% cashback on tap and pay purchases (T&C's apply).

Compare debit cards today

Data updated regularly
Name Product Contactless Payments Instant Payments ATM Withdrawal Fee Monthly account fee
HSBC Everyday Global Account
Google Pay, Apple Pay
PayID
$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.

NAB Classic Banking
Google Pay, Apple Pay, Samsung Pay, Fitbit Pay, Garmin Pay
Osko, PayID
$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.
MyState Bank Glide Account
Google Pay, Apple Pay, Samsung Pay, Fitbit Pay, Garmin Pay
Osko, PayID
$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.
Suncorp Everyday Options Account
Google Pay, Apple Pay
Osko, PayID
$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.
CUA Everyday Snap Account
Google Pay, Apple Pay, Samsung Pay
Osko, PayID
$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
Apple Pay, Samsung Pay
Osko, PayID
$0
$0
Earn up to 0.75% 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.
CUA Everyday Account
Google Pay, Apple Pay, Samsung Pay
Osko, PayID
$0
$0
Enjoy flexible payment options and access to a wide network of ATMs.
$0 monthly account fee.
Access to Google, Samsung and Apple Pay. Enjoy fee-free cash withdrawals from 10,000+ ATMs across Australia. Deposit $1,000+ into this each month and receive bonus interest on a linked CUA eSaver Reward Account.
CUA Everyday Youth Account
Google Pay, Apple Pay, Samsung Pay
Osko, PayID
$0
$0
Designed for young Australians between 10 and 17 years old, a CUA Everyday Youth Account is designed to make everyday banking easier.
loading

Compare up to 4 providers

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.

More guides on Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site