A debit card is a card mostly issued by your bank to help you gain access to your money without going to the branch. The card can also help you buy items online because they are linked to payment processing companies like Visa, Mastercard, and American Express. Debit cards also allow you to send money online using popular payment solutions. So, is sending money from a debit card a good idea?
How to send money using a debit card
It is not possible to send money from one debit card to another. However, many payment platforms allow you to send money to another person’s bank account or phone number. These companies do that by using payment processors that can move funds from your debit card electronically.
Some of the money transfer companies that enable you to send money using a debit card are Wise, XE Money, World Remit, and Remitly, among others.
To do that, you just need to have an account with the company, which you can create within a few minutes. After that, you need to link your debit card with the company and authorize the transaction. To link your account, you just need to know the card number, its expiry date, and the three-digit CVC number. Some cards require a pin to complete the transaction.
You also need to have the account number of the recipient. Always ask the recipient to double-check the payments before you send the money.
The easiest way to send money to a debit card is to send it to the customer’s bank account, which is linked to their debit card. After the money reflects to the bank account, the recipient can then easily withdraw using their card. Alternatively, they can spend it online or in their local stores using the card.
Pros of sending money using a debit card
There are several benefits of sending money using a debit card. First, a card is usually faster than the alternative methods. This is because card transfers usually reflect instantly or after a few minutes. On the other hand, a bank-to-bank transfer can take up to two days to reflect in the payment platform.
Second, using a debit card is convenient. For one, you can do the transaction at any time of the day and even during the weekend. This is because card transactions are handled by the card-issuing company like Visa and Mastercard.
Third, some debit cards offer some rewards to their customers. When these rewards accumulate, it could save you a substantial amount of money in the future.
Finally, debit cards are usually cheaper than other payment options. In most cases, companies charge less than 2% to move your funds using the cards. Sending from bank-to-bank or wire transfer is usually relatively expensive. You can compare the cost of sending funds from a debit card using a money transfer comparison company.
Still, there are some cons when using debit cards. For example, using a debit card exposes you to online fraud especially when you use a company that has not put in place quality security safeguards. Also, when using a debit card, you are limited to bank and checking accounts, and funds are taken out right away.
Summary
Sending money from a debit card is a good idea. It is a safe and convenient method that is also relatively affordable. However, always ensure that the company you are using has put in place quality safety features to protect your card.