Many people want to use a debit card but feel unsure because there are simply too many options to choose from.
Some people may also feel that they do not clearly understand the difference between a credit card and a debit card.
With cashless payments increasingly encouraged in recent years, it seems that more people are using debit cards.
In this article,we explain the differences between debit cards and credit cards, along with recommended debit cards.
How does a debit card work?
Many people would like to try using a debit card but do not fully understand how it works in the first place.
First, let us look at debit cards in detail.
About debit cards
A debit card is a card with a system that immediately withdraws the purchase amount from the account registered to the card when you use it for payment.
Debit cards are issued by banks, and some types are integrated with cash cards.
When you apply for a debit card, if you already have a bank account, the card is typically issued by that bank.
It can also be issued when you open a new account.
Is it different from a credit card?
A debit card is used in essentially the same way as a credit card.
The difference from a debit card is thatwhen you pay with a credit card, the amount is withdrawn from your account on the payment date in the following month or later.
With a debit card, the amount is withdrawn from your account at the same time as the payment, so you cannot complete the transaction if you do not have sufficient funds.
Not being able to use it without a balance and not being able to make revolving or installment payments can be disadvantages, but the ability to prevent overspending is a significant benefit.
Another major advantage is that most debit cards have no annual fee.
Which debit cards are recommended?
Next, we will introduce recommended debit cards.
Each card has its own features and strengths, so choose the debit card that best suits you.
Sony Bank WALLET
Sony Bank WALLET is a debit card issued by Sony Bank and is one of the cards with a wide range of benefits.
In particular, while many cards offer a 1% point return rate, it is highly attractive that the point return rate can reach as much as 2% depending on your spending amount.
The points you earn are automatically deposited into your account, so there is no need to worry about point expiration dates.
It also offers perks such as discounted purchases at Sony's "Sony Store" and PlayStation game titles, making it a rewarding card to have.
Another feature is that it supports 10 currencies: U.S. dollars, euros, British pounds, Australian dollars, NZ dollars, Canadian dollars, Swiss francs, Hong Kong dollars, South African rand, and Swedish kronor.
You can also withdraw local currency from overseas ATMs directly from your account.
Because there are no currency exchange fees, it can also help you save money.
There is also a dedicated app that allows you to check your account balance,which makes Sony Bank WALLET attractive as a practical substitute for a household budget book as well.
It is also convenient because you can set a spending limit and receive a notification if you exceed it.
In addition, sign-up campaigns are often available, which increases the likelihood of getting even more value from the debit card.
Rakuten Bank Debit Card
Rakuten Bank Debit Card is a debit card issued by Rakuten Bank.
It offers a 1% point return rate, and the points earned can be used starting from 50 points.
Because you can choose from VISA, MasterCard, and JCB, it is also convenient if you plan to use it overseas.
Of course, you can also withdraw local currency from overseas ATMs directly from your account.
Through the dedicated app, you can check your debit card usage and schedule transfers to other accounts.
It also comes with perks for shopping advantageously on Rakuten Ichiba, so Rakuten Bank Debit Card is recommended for people who frequently use services provided by Rakuten.
Wise Debit Card
The biggest feature of the Wise Debit Card is that it allows you to exchange money into more than 50 currencies at favorable rates and then make payments locally.
Naturally, it can also be used cost-effectively for payments on overseas websites.
This card is based on a system called Wise that was originally used overseas, so it is also an international brand.
With around 10 million users worldwide, it is clear that it enjoys a very high level of trust.
However, please note that it cannot be used at ATMs in Japan.
Instead of offering perks such as point rewards, it is specialized for overseas use, making it a good choice not only for people planning long-term study abroad or those who enjoy international travel, but also for those who want to keep a backup account dedicated to foreign currency.
SMBC Debit
SMBC Debit is a debit card issued by Sumitomo Mitsui Banking Corporation.
One of its features is that you can add the contactless payment service "iD決済" operated by NTT Docomo.
Its point return rate is relatively low at 0.25%, but adding iD決済 makes it convenient because it can be linked with a variety of services.
Since iD決済 does not require a PIN or signature, it also enables quick purchases.
Another strength of SMBC Debit is that you can set a usage limit for debit card spending, which helps prevent overspending.
JNB VISA Debit
JNB VISA Debit is a debit card issued by PayPay Bank.
The key strength of JNB VISA Debit is that the card can be issued in as little as five days.
Because you can also apply to open the account online, it is recommended for people who want to start using a debit card as quickly as possible.
In the dedicated app, you can check your account balance, payment history, and more.
Its cashback rate is relatively low at 1 yen for every 500 yen spent, but it offers campaigns for new account holders, allowing you to issue the debit card on favorable terms.
Summary
In this article, we introduced the differences between credit cards and debit cards, as well as recommended debit cards.
A debit card can be applied for from age 15, which makes it attractive because it can be used even if you are not yet an adult.
If you are concerned about overspending, it is a good idea to choose a card that allows you to set a spending limit.
If you shop frequently, a card with a high point return rate is, of course, recommended.
Use this article as a reference to choose the debit card that best fits your needs.
Frequently Asked Questions (FAQ)
What is the difference between a debit card and a credit card?
A debit card withdraws funds from your account immediately, while a credit card is postpaid.
What are the benefits of a debit card?
Its benefits include helping prevent overspending, relatively easy screening, and point rewards.
What are the drawbacks of a debit card?
Its drawbacks include not being able to use installment payments and the possibility that it may not be accepted at some stores.
