The United States has a strong image as a credit card society, but in recent years, the use of debit cards has been increasing. Debit cards are popular among a wide range of people as a highly secure means of payment that can be used within the limits of account balances.
However, there are numerous debit cards in the U.S., each with different features and benefits. In order to choose the debit card that is right for you, you need to compare and consider various factors.
This article will explain in detail how to choose a debit card and what to look out for, while also taking into account the social situation in the U.S.
International brand
Debit cards in the U.S. mainly support the following three international brands
VISA
The most widely used international brand in the world. It has a large number of merchants and can be used safely anywhere in the world.
Mastercard
The second most popular international brand after VISA, and like VISA, it has a large number of merchants and is a highly convenient brand.
JCB
This international brand has a high market share in Japan, but has fewer merchants overseas than VISA and Mastercard.
If you frequently use your debit card for overseas travel or study, we recommend that you choose VISA or Mastercard.
Fees and charges
Debit cards may incur the following fees
Annual fee
This is a fee that is incurred annually. Some debit cards are free, but debit cards with more privileges often have an annual fee.
ATM fee
This fee is charged when withdrawing cash from an ATM. Many debit cards offer no fees for use at bank-affiliated ATMs, but you will be charged a fee for use at non-bank-affiliated ATMs.
Foreign transaction fee
A fee charged when using your debit card overseas. The fee is added to the exchange rate.
It is important to check these fees carefully when choosing a debit card. In particular, if you frequently use your debit card overseas for travel or study, be sure to choose a debit card with a low overseas transaction fee.
Cash back
Some debit cards offer cash back for a portion of the amount spent. The cash-back rate varies from debit card to debit card, and is usually between 0.5% and 2%.
By choosing a debit card with a high cash back rate, you can save a little money on your daily purchases. Note, however, that there may be a maximum amount of cash back.
Security
Since debit cards are directly linked to your account, security measures are very important.
In recent years, the number of victims of skimming and unauthorized use of debit cards has been increasing. When choosing a debit card, be sure to select one that has the following security measures in place
IC chip
IC chips store PINs that are difficult to counterfeit and prevent skimming.
Biometric authentication
Debit cards with biometric authentication functions, such as fingerprint or face recognition, provide even more accurate identification.
Zero-Liability
A system that compensates the amount of damage in the event of unauthorized use.
Other benefits
Some debit cards come with the following benefits
Travel insurance
This insurance covers the cost of medical treatment in the event of illness or injury while traveling abroad.
Shopping insurance
Covers theft or damage of purchased items.
Member benefits
These are privileges that allow you to receive discounts and special offers at affiliated stores.
These benefits are helpful information for choosing a debit card.
Points to note in light of the social situation in the U.S.
In recent years, prices have risen significantly in the U.S., placing a greater burden on household finances. When using a debit card, the following points should be noted.
Manage your budget carefully
Debit cards can be used within the limits of your account balance, so there is a possibility that you may end up overspending. Set a budget and plan your use accordingly.
Check your spending history regularly
Check your spending history regularly to prevent unauthorized use.
Take advantage of cash-back rewards: Cash-back rewards can help you save on your finances.
Conclusion
U.S. debit cards come in a wide variety of types and come with a variety of benefits. It is important to compare and contrast international brands, fees, cash back, security, and benefits in order to choose the debit card that is right for you.
In addition, you should take into account the social conditions in the U.S., manage your budget carefully, and check your usage history regularly.
