You prefer to carry plastic instead of cash. It’s more convenient. It’s safer. But what if you want that convenience and protection of plastic without the temptation to buy on credit? A credit card just won’t cut it. Fortunately you have another option: debit cards.

Let’s explore debit cards, what they are, how they work, and how they differ from credit cards. Then you’ll be able to make a more educated decision about which is really right for you.

Debit Cards: Credit Card Spending Without the Credit Line

Debit cards look a lot like credit cards. They probably even carry either the Visa or MasterCard logo. But there’s an important difference. While credit cards let you spend money tied to a line of credit extended to you by the issuing bank, a debit card instead lets you spend money you already have in your checking account. Because you don’t technically borrow money, you don’t risk going into debt. Even though there’s no credit (meaning no interest) involved, some debit cards still offer perks similar to credit cards, like free international travel insurance.

How Debit Cards Work

As far as the end user experience, debit cards work much like credit cards. In fact, you can usually choose to use the debit card as a credit card. If you use it as a traditional debit card, you’ll enter a personal identification number (PIN) during the transaction just like you would at an ATM.

There’s no credit limit. You purchases will be approved if you have enough cash in your bank account to cover them, and funds will be removed (usually almost immediately). It’s like taking out cash at the ATM and using it to make a purchase, only you cut out the middleman and use the card directly.

Whereas credit cards often have annual fees, debit cards generally don’t. Instead they might have a small monthly account maintenance fee, although this can be more of a bank account fee and not a fee specifically for having access to the debit card. You might be able to get this fee waived if you maintain a certain minimum balance in your account.

Examples of Debit Cards

Just about all checking accounts will offer access to a debit card. Some online payment services (like Paypal) also offer debit cards to users in some countries. Here are a few examples of debit cards available in Australia.

1.    NAB Classic Banking with Visa Debit
2.    St. George Visa Debit Card
3.    NAB Gold Banking with Visa Debit

Those are only a few examples of available debit cards. Check with your local bank to see what debit card options are available on your checking account.