A dollar debit card, in simple terms, is a debit card that does transactions in dollar instead of naira. It is the dollar equivalent of a naira debit card.
While the naira debit card transactions are done in naira, the dollar debit card transactions are done in dollars.
A naira debit card is attached to your savings account or current account; but the dollar debit card is attached to your domiciliary account (a foreign currency account).
A dollar debit card is an international debit card that is issued in partnership with MasterCard or Visa; and it is directly linked to the customer’s domiciliary account.
Banks including those in Nigeria have some similar products (prepaid dollar cards) that are not linked to a domiciliary account. They are different from the dollar debit card.
The dollar debit card is denominated in the US dollars, but can also be used to settle purchases in other major currencies.
All transactions carried out using the dollar card are reflected on the account instantly.
It is important to note that a customer can choose to apply for a pound sterling debit card or a euro debit card, depending on his/her needs or preferences.
Most people open dollar debit card because the US dollar is the most popular currency in the world and transactions done in dollars are easily convertible to other currencies.
The following are the disadvantages of having and using a dollar debit card.
1. Dollar scarcity:
Due to the scarcity of dollars in the country, you may need to go to the parallel market to source for dollars to fund your domiciliary account. This often comes at a high exchange rate.
2. Account maintenance fee:
You will need to pay an annual account maintenance fee on your domiciliary account
3. Card maintenance fee:
Your bank will also charge you an annual card maintenance fee
4. Withdrawal fee on your domiciliary account:
Each time you withdraw cash from your domiciliary account across the counter for one reason or the other, your bank charges you a withdrawal fee.
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