Debunking Common Card Payments Myths
8 July 2020
The World Health Organization (WHO) declared COVID-19 a pandemic on March 11, 2020, a dynamic that has impacted the world immensely.
Nationwide lockdown, social distancing and proper sanitization are some of the measures different countries have taken up to curb the spread of the virus. Although the WHO has not issued a warning about using banknotes, it advises the public to wash their hands thoroughly after handling money. Businesses have had to re-look their operations amid the changing payments landscape.
According to the Enhancing Growth of Plastic Cards in Kenya (2014) report by Financial Sector Deepening (FSD) Kenya, the usage of plastic cards to make purchases is still very low even among those who have them. Are you as the customer aware of the benefits that come with using your debit card? Do you know the value of your card? We debunk some common card payment myths below:
- My card is an ‘ATM’ card: For the longest time, debit cards were associated with withdrawals from, and deposits to a customer’s bank account, so much so that one would use the card to withdraw funds from the account only to use the money at a physical shop. With more and more businesses accepting multiple payment options, it has become easier for customers to pay. Your debit card can be used to make a purchase at any outlet (whether online or physical) that has card acceptance. You can also pay your utility bills such as electricity, DSTV, using your debit card.
- It’s unsafe to use my card: Some customers fear that card usage will expose their account details and balance to the entire world. In addition to that, there’s fear of using the card online due to fraud. Banks and fintech companies are continuously adopting security measures such as tokenization, to keep you safe when you are shopping online. Moreover Visa’s Zero Liability gives you confidence when you use your card to shop.
- Shopping with cards is an elite’s lifestyle: There is a misconception that cards are only used by a certain class of people. Most banks will give you a debit card when you open an account with them. Some will even offer a temporary overdraft facility that you can access through the debit card. As long as your account has some funds, you can use the card to transact and pay for goods and services.
- Swiping is expensive: Unlike mobile money, paying via card is absolutely free. The merchant covers the cost of swiping the transaction through interchange fee. Instead of withdrawing funds to make payments, or moving money from your mobile banking app to your mobile money wallet, you can use your debit card to pay.
- Cards are only reserved for huge transaction values. Another false notion associated with card payments is that one can only use their card when making a huge payment. That could not be further from the truth. You can pay as little as KSh. 10/- and as high as KSh. 1,000,000/- with your card. Some merchants will however place limits on the minimum amount that you can pay via their point-of-sale machine. Your bank might also set a limit on the amount you can transact online so be sure to check with them when making a payment online.
Make use of your card today. Discover places you can shop and pay with your debit card and enjoy convenience.