Debit card and cash usage are two important terms that should be properly comprehended by all the debit cardholders. Over the past 10 years or so, the debit card transactions went up at a fast pace in the developed countries.
About Debit Card and Cash Usage
Debit card and cash usage are two significant expressions that should be clearly understood by the debit card users. It has been noticed that in the last decade, transactions utilizing debit cards increased at a rapid pace. These cards are used throughout the world and the developed countries are leading the way in this respect.
As a direct consequence of greater debit card usage, the application of checks and cash has gone down substantially.
Nevertheless, the foreign exchange stock in public exposure has not diminished in such a speedy manner. It has been observed that the demand for notes and coins with small denomination goes down in case debit card application goes up simply due to the reason that merchant establishments have to provide lower change for commodities bought by clients.
At the same time, the demand for notes with bigger values is not usually influenced so much with the growth of the transaction activities through the plastic cards.
The introduction of POS (Point of Sale) terminals has also contributed towards the growth of debit card usage. Debit cards are regarded as the best payment option by the merchants and customers regarding specific forms of transactions. It is also convenient than other payment systems and the procedure is quite simple. Another reason behind this is that carrying debit cards is safer than carrying cash.
Nonetheless, in the majority of OECD countries, cash usage is higher than debit card usage because the electronic payment infrastructure is not so developed in these countries.