Financial IQ: Do you have debit cards?

Have you heard of debit cards?  Can you distinguish how debit cards differ from credit cards?  


In my case, I have actually used debit cards a lot when I was in United States, as short-term residents (such as tourists) tend to get declined over and over again when applying for credit cards.


Anyway, back to debit cards... instead of going the path of recalling my past experiences.


Several things to remember when using debit cards:

• Debit cards are as good as cash.
• Debit cards are issued by banks.
• Each debit card transaction will update your bank account real-time.  Make sure you have enough balance.
• It can be used anywhere with the co-brand of the debit card (most of the time, either Mastercard or Visa logo).
• You need to key-in your PIN code once swiped.
• You can actually pay more than the amount purchased.  Hence, the vendor will give you change.
• Unlike credit cards, it is generally much more difficult to reverse a transaction charge on a debit card instead of credit card.

With proper financial IQ / literacy, debit cards are a good source of emergency funds.


Personally, I prefer credit cards over debit cards.  How about you?   Do you prefer debit cards over credit cards or vice-versa?