Debit card are now popular among small business owners.

During the present credit crunch scenario, everyone wishes to minimize debts and small business owners prefer the use of debit cards to send and receive money for business purposes. These cards help separate management of business funds so that you don't have to mess up your business debts and personal funds. According to the survey of Synergistic Research Corporation, 35% small business owners use debit cards.

Banks now promote debit cards for its customers with business checking accounts as banks also benefit from these business customers. The amount of business transactions is huge and hence, banks can profit from the interchange rate of business debit cards.

When the business owners show interest in conducting business transactions using debit cards, the banks are ready to offer more offers and services. The interchange rates for business debit cards continuously increases as the volume of transactions increases.

For small business owners, payroll solutions are simplified with the use of debit cards. Every year, millions of payroll checks were either stolen or lost. The advantage of prepaid credit cards combined with bank accounts minimizes the efforts of small business owners to pay their employees. The employees can receive money easily and then use debit cards for their salary account. More and more banks are now offering payroll services for small business owners to make the payroll process easier.

Generally, suppliers for any business are paid using credit cards or checks. These methods don't pay the suppliers immediately. After paperwork and processing, there will be a delay of at least a few days for the payment to reach the suppliers. When business owners send money using debit cards, payment is almost immediate. Moreover, small business owners can also manage their funds easily as their business expenses are debited at the end of transaction.

Previously, banks charged an annual fee for debit cards. Nowadays, this fee is waived on account of the increasing popularity of debit cards. So, these debit cards are more like prepaid credit cards without additional fees or charges. Apart from saving money in terms of interest charges, you can save time as well by eliminating large volumes of paperwork that may be required otherwise.

Though debit cards have many advantages, you have to use the cards wisely. When any transaction value is more than your account balance, the banks will charge you overdraft fees. If you don't have overdraft protection, you are likely to spend more than what you have.

The PIN number of the debit card must not be disclosed to anyone if you don't want a scammer to wash away your bank account by getting access to your debit card and secret PIN number illegally.

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