Debit card is a card use to make transactions for cash rather than credit; replaces the need for cash or checks by initiating charges against the checking account.
Its big disadvantage is that:
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A. B. C. D.A
The correct answer is B. A debit card is a payment card that allows the cardholder to make transactions using funds available in their checking account. Unlike a credit card, which provides a line of credit that can be used to make purchases and requires the cardholder to repay the borrowed funds with interest, a debit card only allows the cardholder to spend the funds they already have available in their checking account.
The disadvantage of using a debit card is that it does not provide a line of credit. This means that if the cardholder attempts to make a purchase that exceeds the available funds in their checking account, the transaction may be declined. Additionally, some merchants may place a hold on funds in excess of the purchase amount, which can lead to temporary overdrafts and potential overdraft fees if the account balance is not sufficient to cover the hold and other pending transactions.
Another potential disadvantage of using a debit card is that some merchants may charge fees for using a debit card instead of cash or credit. This is because the merchant must pay a fee to the card network for processing the transaction, and some merchants pass this fee on to the customer as a surcharge.
Repaying of cash is not a disadvantage of using a debit card, as there is no borrowing involved. The cardholder is simply spending the funds they have available in their checking account. However, it is important for the cardholder to track their spending and ensure that they have sufficient funds available to cover their transactions in order to avoid overdraft fees or declined transactions.
Overall, the main disadvantage of using a debit card is the lack of a line of credit, which can make it difficult to make purchases that exceed the available funds in the checking account. It is important for cardholders to monitor their account balances and be aware of potential fees associated with using a debit card, such as overdraft fees or merchant surcharges.