Advantages and Disadvantages of Uber Debit Card
Uber Debit Card is what drivers and riders can leverage while hiring a ride or even everyday purchases. Uber, the rapidly growing ride company, has launched a new debit card that allows you to use Uber balance to pay for rides, products, and services. You can sign up with Uber Debit Card by downloading the app on your phone and activating it within a few steps. The only thing required is at least a $20 balance in your account to sign up. Is the debit card linked to your credit score or is a credit card still a better option? What are its limitations? The Advantages and Disadvantages of Uber Debit Card bring about its pros and cons.
Uber Debit Card: How the card works
The Uber debit card will allow you to tap and pay at any retailer that accepts Visa cards. You can also use debit cards to purchase iTunes, Google Play, Groupon, and more with no hidden fees or charges.
In addition, you'll get a free ATM withdrawal per month from your account balance in addition to monthly notifications about account activity. The best part is, there are no foreign transaction fees for using your Uber Debit card while traveling. With these features, it's easy for you to earn rewards just by transacting via this card.
What are the Advantages of Uber Debit Card?
Some of the Uber Debit Card features, such as cashless transactions & protection against fraud, account for its advantages. The most prominent advantages of the Uber Debit Card are listed below.
1. No debt
This card is great for users who don't want to get into debt or have problems with their account balance because they are limited in spending. You cannot exceed the amount of cash available on your debit card, eliminating the risk that many credit cards carry, like overspending and interest rates. In addition, there's no annual fee, so it becomes an inexpensive choice if you need a basic way to pay for things without having a bank account as well.
2. Convenience is one of the major advantages of Uber Debit Card
One of the key Uber Debit Card Benefits is it's easy to reload! You can add funds by linking up your checking or savings account online at any time or set up recurring monthly payments through the app (or both!). It also has RFID protection which means that thieves need either physical possession or direct contact with the cards in order to skim off information.
3. Inexpensive to use
One of the many benefits of using Uber debit card is that it’s inexpensive to use. You can request a ride without paying through your bank account or credit cards and then pay for it with cash on arrival. With this system into play, you don’t have to worry about getting hit by any nasty hidden fees while buying something online.
4. It’s easy to have Uber Debit Card
Once you acquire the card, you need to follow the uber debit card activation link and you’re all set. There are no rigorous qualifications for any user; as long as you are 18 years or older and not currently in bankruptcy proceedings, you're eligible.
This expands the access of cards that many people don't have already because traditional credit lines may be out of reach due to the inability to provide financial history or pay off balances owed from high-interest rates charged by banks. Ass aid before, an Uber debit card does not require those things- all it requires is paying a $25 deposit fee once per year (to cover any fraudulent charges) .
5. Saves Time & Money
Uber Debit Card is good to have because it saves your time and money from taking to a ride to shopping or even paying for Uber eats. The Uber Debit Card is a Visa debit card powered by Gobanking that gives you access to your GoBank checking account from any mobile device. This is a great tool for people who need fast cash or to pay bills. You can also conveniently withdraw cash anytime or anywhere you have an ATM or bank branch near you.
What are the Disadvantages of Uber Debit Card?
There are indeed some limitations you need to consider while using an Uber Debit card. The first one is whether you want the ability to earn rewards from your spending or not. If you do, then a regular credit card will be better for you than an Uber debit card because they typically offer more rewards for every dollar spent. Some other disadvantages of Uber Debit Card may also interest you as you go further.
1. Higher risks involved compared to credit cards
A debit card is always subject to fraud from illicit use and hacking since there are fewer safeguards against these types of crimes than with a credit card. Using new debit cards can be costly, time-consuming, and inconvenient for users with an average balance between $0 & $100 on their checking accounts.
Whether credit or debit, negative balances could result in overdraft fees if not handled carefully. As of 2010, about one-third (33%) of U.S households had no bank accounts at all. For those without bank accounts, it will cost them more money out-of-pocket per transaction because they must pay check-cashing fees as well as surcharges for using a debit card.
2. No positive impact on your credit score
It is not uncommon for people to think that Uber debit cards will positively impact their credit score. Unfortunately, this does not happen and can make it worse. This doesn't work out has everything to do with the type of business model they are using. Read more about what an Uber debit card is, how many countries offer them, and if you should get one!
3. Limited Rewards are Major Disadvantage of Uber Debit card
You can earn 1% cashback on all purchases using Uber Debit Card, that too, when you qualify for it. The card offers 10% cashback at Advance Auto⁴ and participating Carquest locations.
You can get 3% cashback at Exxon and Mobil stations, while a 15% discount on select services at Jiffy Lube. At some places or stores, the Uber Debit Card will be useless. There are no reward points programs at ATMs (cash withdrawal) or banks like most credit cards do.
4. You may have to Overspend
One complaint about Uber is overspending on your debit card because you never know how much a ride will cost when you're not looking at an estimate until after requesting one. You could request several rides and end up with a total bill that's way more than what you anticipated if Uber charges $0.49 per minute for waiting time or some other charge like this pops up unexpectedly. Also, if you have to pay interest on unpaid balances, then these expenses can add up significantly.
5. Large purchases can be a hassle
You cannot skip payments with the card because transactions occur automatically every few days with no option of canceling any future dues until next month's billing cycle when they get charged again (this might sound like a pro). Still, if anything goes wrong during those two weeks between charges, then you're stuck paying late fees on top of everything else.
Conclusion on Pros and cons of Uber Debit Card
The benefits certainly seem to outcompete the disadvantages of Uber Debit card. Consumers who use these cards report fewer hassles and more convenience than those with traditional credit cards. Therefore, an Uber debit card is a justifiable option for you if you use uber services often and transact via debit cards. All in all, every technology is meant to make life hassle-free. So far, Uber has kept its standards by serving customers efficiently.