debitcard

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?

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

Bank Account Offer

No foreign ATM or transaction fees. $0 monthly account fee. Enjoy no minimum ongoing balance or transaction requirements and the flexibility to hold up to 10 currencies. Apple Pay and Google Pay available.

  • Account keeping fee: $0.00
  • Linked debit card: Visa
  • ATM withdrawal fee: $0.00
  • Overseas EFTPOS fee: $0.00
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Compare debit cards today

Rates last updated December 10th, 2018
$
Name Product Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Monthly Account Fee Product Description
HSBC Everyday Global Account
Visa
$0
$0
No foreign ATM or transaction fees.
$0 monthly account fee.
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
Visa
$0
$0
Enjoy convenient, unlimited access to your money.
$0 monthly account fee.
Tap and pay with your NAB Visa Debit card, NAB Pay for Android or NAB PayTag for iPhone. Temporarily block your card at the touch of a button if you lose it.
HSBC Day to Day Transaction Account
Visa
$0
$0
Open an account and easily switch your regular payments over from your current bank.
$0 monthly account fee.
Through your linked Visa debit card, you can access exclusive shopping, travel and restaurant deals here and abroad through HSBC's home&Away Privilege Program.
ING Orange Everyday Youth Account
Visa
$0
$0
A flexible option for those aged 15-17 years old.
$0 monthly account fee.
ING Orange Everyday Youth account is for Australians aged 15-17 years old. It offers Apple Pay and Google Pay, with no ATM fees, no account-keeping fees and no foreign transaction fees. Earn a competitive interest rate when you link with an ING Savings Maximiser, without having to meet any deposit or withdrawal conditions.
Citi Global Currency Account
Mastercard
$0
$0
Hold up to 10 currencies.
$0 monthly account fee.
Enjoy one linked debit card to hold up to 10 currencies and receive foreign currencies for free. Earn up to 2.25% p.a. interest on your AUD balance.
AMP Bett3r Account
Visa
$0
$2,000
Earn 1.50% interest. Manage your budget effectively with a bundle of accounts.
$5 waivable monthly account fee.
Earn 1.50% interest on your balance. Monthly account fee waived if you deposit at least $2,000 a month from a source that is not another AMP bank account. Reach your savings goals with a bundle of linked Pay, Spend and Save accounts.
NAB Classic Banking with Platinum Visa Debit Card
Visa
$0
$0
$10 cashback on contactless purchases, $0 foreign transaction fee and complimentary travel insurance.
$10 monthly account fee.
Receive $10 cashback when you spend $1000 on contactless purchases. Complimentary travel insurance, transport accident insurance, purchase protection insurance and more when you meet eligibility criteria.
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.

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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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2.80

Standard Variable Rate

1.00
RaboDirect High Interest Savings Account

Maximum Variable Rate

3.05

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1.80
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2.55

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