The tentacles of debit cards

By John Kariuki

The debit card swiping is one of the the most common banking services today.

Unlike buying with credit or visa card, the swiping  of debit cards has no hidden charges or interest.

The only thing one does is to present a debit card to authorised merchants. This electronically transfers money to peoples or business account for goods and services rendered.

The cashless platform enables people carry out bigger business transactions beyond the ceiling set by mobile phone money transfer services. Transactions occur in real time. One’s account is debited as the authorised agents’ account is simultaneously credited.

interest in the card

In circumstances where an account holder needs cash while far from an ATM, the swipe card service allows him or her to draw money from a banking agent at a small fee.

Going by the increasing number of supermarkets, hospitals and retail businesses that are putting up the swipe card services, this novelty is quickly catching on.

But personal finance experts warn that like all money deals, people must exercise caution with the debit card.  

Caleb Maina, a Nakuru-based spare parts dealer says the swipe card service could not have come at a better time. He can now buy his supplies in bulk.

“Previously, I would make two journeys every week to Nairobi to replenish my merchandise carrying smaller amounts of money that the mobile phone transfer services could allow,” he says.

But with the swipe card, Maina makes  a single trip every two to three weeks.

 “I can now swipe up to Sh500,000 easily at every trip,” he says. Maina adds there is little risk to his cash.  “The only hitch I encountered was looking for a supplier with an account with the same bank as mine,” he says. 

Aisha Wanjiru, who works in Nairobi, was skeptical of the swipe card facility at first, fearing hidden charges. But upon getting home late from work one evening, she had to try it.

“A neighbourhood supermarket that was open and I walked in, my debit card. I did my shopping at no extra cost,” she says. She has since become an ardent user of swipe card service.  Wanjiru was for the first few months lured into overspending. “I would check my bank balance and conclude the swipe card service had some extra charges,” she says.

“I began tracking all my expenditure by keeping all the receipts,” she says. She observes that unlike earlier times when she had capped her domestic budget at Sh7,000 per month, it ballooned to Sh11,000 with the swipe card.

“I have instituted stringent controls by shopping with a list and often twice per month and I now leave my debit card at home when I don’t anticipate buying anything on my way from work,” she says.