What is a debit card?
A debit card holds cash that you have deposited with an institution, usually a bank, that you then pay for items or services using that card instead of paying with cash.
Why not just carry cash? Here is a break down of some things to think about when deciding whether to bring a debit card with you on your travels
Pros:
You are not carrying physical money, which is easy to lose and spend. Also, if someone sees cash coming out of your wallet, you can easily become a target for pickpockets.
You can withdraw cash as needed Therefore, you will only have as much actual cash on you as you need until you will return to the ATM.
Note:If you are traveling locally, and you lose (or forgot) your debit card, you can still withdraw money from your back by going inside your bank with your ID.
You can pay with your card where accepted: Just like with a credit card, you can charge with your debit card. Some places take debit, but not credit cards (or charge extra for credit cards)
Your money is insured. In case your debit card is stolen or there is some activity that was not from you, you can appeal to the institution toward getting your money. Granted, there is a bit of footwork involved and paperwork to fill out, but you do have a chance at getting back.
Cons
Few debit cards give rewards: By rewards, I mean cash back for purchases, discounts, or flight miles
Most charge fees: Taking money from an ATM or bank outside the country will not only incur an out of network fee, but also a fee for currency conversion, every transaction.
ATMs outside of your network or country may not accept your debit card. This is very possible; the ATM will not recognize your debit card and simply not give you cash. OR it may tell you’re getting cash, but not give you any. This can be terrifying when you are far away from your bank – not knowing if your funds are gone or if the transaction was cancelled.
Bank affiliates in other countries.
Getting Money at ATMs: For debit cards, the Visa, Mastercard, American Express or other insignia on the front of your card does not mean that your card will work at an ATM. Look at the back of the card. Those logos at the bottom that you never much paid any attention to are all that matter at this point. If one (or more) of the logos on the back match the logos on the ATM, you’re good to go! Your card will be able to be used at that ATM.
Do not opt for being charged in your own country’s currency. You will be charged a conversion fee to change it from the local currency into yours. Always opt to be charged in the local currency and let your debit card company handle the conversion. You will always be charged a better rate that way.
An Online Bank worth looking into: Charles Schwab has a checking account that requires no minimum amount of money in the account, no foreign transaction fees, and unlimited rebates for ATM fees worldwide. This is an ATM card that may be worth looking into. Mind you, you do not have to give up your favorite bank and move everything online. Because this checking account doesn’t have any money or usage requirements, it’s not a bad idea to have this as your travel checking account so your home account won’t have to be touched. https://www.schwab.com/checking
Here is an article about several banks that are travel friendly. One of them may suit your circumstances. https://www.investopedia.com/articles/personal-finance/053116/top-10-checking-accounts-us-expats-living-abroad-cof-schw.asp
Is a credit card and debit card the same thing?
The difference between a credit card and a debit card is that with a credit card, you’re borrowing money and with a debit card, it’s your own money on a card.