Debit cards have "best of both worlds"

The wide acceptance of debit cards makes this form of payment popular among consumers, according to a financial expert.

Debit cards have the "same acceptance" as a credit card, meaning it can be used to pay for a range of services and goods both on the internet and offline, according to a financial expert.

Harry Senlitonga, a senior financial analyst for Canstar Cannex, told the Australian Associated Press that debit cards are seen as the "best of both worlds".

He added: "Some people like it because it is not a credit card; you are using your money."

Mr Senlitonga highlighted the amount of places that debit cards can be used and noted that more banks have started offering them in the past two years.

Christopher Zinn, a spokesman for consumer advocate Choice, supported Mr Senlitonga's comments by suggesting that debit card spending is "more controllable" and that they make sense for online purchases.

The comments were made following a report by the Reserve Bank of Australia (RBA), which stated that debit card transactions increased by 39 per cent in the year up to November 2009.

The RBA, which will celebrate its 50th anniversary this year, also noted an increase in Aussie credit card usage by 14.9 per cent and electronic funds transfer point-of-sale spending going up by 12.45 per cent.

By Kate Guthrie