Best Debit Cards
Our guide outlines the best free debit cards and related bank accounts, debit card FX fees and important must-know facts to find the right card for your needs
Updated 25 March 2022
Know this first - what is a debit card?
Debit cards are like EFTPOS cards, but you can use them to make purchases online (just like a credit card). Additionally, you can use a debit card to make contactless payments, PIN payments and withdraw cash from ATMs in New Zealand and overseas. Every transaction you make is linked to your bank account meaning payments you make are deducted from your bank balance in real time.
There are a lot of different debit card options available; our guide covers:
Advertising disclosure: We may receive payment if you sign up for a card via MoneyHub - please read our advertising policy for more details.
Do you want to compare travel money debit cards? If so, this guide is not for you. Our dedicated travel money card comparison has you covered.
Debit cards are like EFTPOS cards, but you can use them to make purchases online (just like a credit card). Additionally, you can use a debit card to make contactless payments, PIN payments and withdraw cash from ATMs in New Zealand and overseas. Every transaction you make is linked to your bank account meaning payments you make are deducted from your bank balance in real time.
There are a lot of different debit card options available; our guide covers:
- Debit cards vs EFTPOS Cards
- The Best Debit Cards Available Right Now
- Three must-know tips when choosing a debit card
- Frequently Asked Questions
Advertising disclosure: We may receive payment if you sign up for a card via MoneyHub - please read our advertising policy for more details.
Do you want to compare travel money debit cards? If so, this guide is not for you. Our dedicated travel money card comparison has you covered.
MoneyHub Founder Christopher Walsh shares his views on debit cards:
|
"The debit cards available right now may, at first appearance seem similar, but there are some significant differences between them. While annual debit card fees and app functionality are similar, the most significant differentiator are annual fees the high foreign currency fees that earn banks lucrative profits. Worst of all, many banks charge much more than others but don't offer anything extra for doing so.
Setting aside the annoying annual fees for holding a debit card, I believe the currency fees matter because many of us shop online and purchases are often made in foreign currencies. And, now that borders are reopened, travel is on the horizon - avoiding pesky bank fees is not difficult if you know the right debit cards. Personally, I use the Wise Debit Card in New Zealand overseas and swear by it. It doesn't have any tricky fees - you pay a one-off NZ$14 (meaning no annual fees) for the card to be issued and posted to you, and then get the best exchange rates and pay very low foreign currency fees on each transaction. All New Zealand Dollar transactions are also free and unlimited. It also has an app so you can track your spending, which is very helpful. You can transfer NZD from your bank account to the card for free. The balance is yours to spend or withdraw as you please - every transaction will then be deducted in NZD at the best rates and lowest fees. Normally I wouldn't specify the product I use in MoneyHub guides, but the Wise card is so good I feel it's in everyone's interest to know about it. If you are looking for a new debit card I would also consider a budgeting app so you can track where you spend and make the best decisions going forward". |
MoneyHub Founder Christopher Walsh
|
Our Top-Rated Card for Zero Annual Fee, an Innovative App and Ultra Low Foreign Currency Transactions - The Wise Debit CardWe like the Wise Debit Card because it lets you:
Alternative Debit Card - Avoid typical annual card fees with our alternative and trusted debit card:
|
|
Who offers debit cards, and how do I know which one is best?
All major New Zealand banks offer debit cards. They are designed for everyday spending and will either be Visa or MasterCard branded. These are the companies that process the transactions when you use the card. However, your relationship is always with your issuing bank so you’ll need to contact their customer service team should you have any questions about your card - Visa and MasterCard don't assist customers directly.
How to choose the best debit card for your needs:
The best debit card is one with zero annual fees (or as low fees as possible). Furthermore, the best debit card will integrate with a fee-free bank account. While issuing and renewing a debit card can be free, using it can incur fees in a number of ways:
Important: Understand how Visa and MasterCard compare
How to choose the best debit card for your needs:
The best debit card is one with zero annual fees (or as low fees as possible). Furthermore, the best debit card will integrate with a fee-free bank account. While issuing and renewing a debit card can be free, using it can incur fees in a number of ways:
- Renewal fees: Most banks charge an annual fee for the use of the card – if your bank charges this, it will usually be no more than $10/year and taken from your bank account.
- Transaction and withdrawal fees: In New Zealand, bank-issued debit cards don’t charge ATM withdrawal fees or transaction charges for purchases in shops or online within New Zealand. However, if you make a transaction in an overseas currency, most debit cards charge a percentage fee.
Important: Understand how Visa and MasterCard compare
- If you use your debit card exclusively in New Zealand, there’s little to no difference between MasterCard and Visa. However, if you make online purchases in overseas currencies (i.e. AUD or USD) or travel overseas, the main difference is the exchange rate.
- Our Visa vs Mastercard research confirmed that MasterCard offered better exchange rates. This won’t make a difference on a $100 purchase, but if you use it often for non-NZD purchases, the difference can add up.
EFTPOS Cards vs Debit Card Features
Banks continue to issue EFTPOS cards, but the reality is debit cards are packed with a lot more features, much more convenient and don't have any additional transaction fees. The table below illustrates the advantages of debit cards.
Table 1 - How debit card offer more features comparative to EFTPOS cards
Features |
EFTPOS Card |
Debit Card (MasterCard or Visa) |
EFTPOS purchases in NZ |
Yes |
Yes |
ATM withdrawals in New Zealand |
Yes |
Yes |
Overseas ATM withdrawals |
Depends on issuing bank |
Yes |
In-store purchases overseas |
No |
Yes |
Online purchases |
No |
Yes |
Phone purchases |
No |
Yes |
Mail order purchases |
No |
Yes |
Recurring purchases |
No |
Yes |
payWave technology |
No |
Yes |
Integrates with PayPal |
No |
Yes |
Xero-issued online invoices |
No |
Yes |
The Best Debit Cards Available Right Now
Almost every bank in New Zealand offers a debit card alongside a free-fees everyday bank account. This means you can pay $10 (or $0) per year for everyday banking with a debit card. Beyond the free standard fees, you'll still pay overdraft interest and fees if your spending exceeds your balance (and have an overdraft facility set up). There are a few non-standard fees to aware of (for example, overseas transaction fees).
Overall, our view is that BNZ and Wise offer the most attractive debit card features, backed up by fee-free everyday bank accounts. The Wise debit card makes a sensible backup option for NZD transactions, and a cost-effective card if you're spending in overseas currencies (i..e online shopping or when travelling).
To help understand all the debit cards on offer, our comparison below highlights what's most important so you can compare with confidence:
Overall, our view is that BNZ and Wise offer the most attractive debit card features, backed up by fee-free everyday bank accounts. The Wise debit card makes a sensible backup option for NZD transactions, and a cost-effective card if you're spending in overseas currencies (i..e online shopping or when travelling).
To help understand all the debit cards on offer, our comparison below highlights what's most important so you can compare with confidence:
Our Top-Rated Card for Zero Annual Fee, an Innovative App and Ultra Low Foreign Currency Transactions - The Wise Debit Card
We like the Wise Debit Card because it lets you:
|
|
BNZ Visa Debit Card
|
Avoid typical annual card fees with our alternative and trusted debit card:
|
|
Westpac MasterCard Debit Card
|
|
TSB Visa Debit Card
|
|
Kiwibank Visa Debit Card
|
|
ANZ Visa Debit Card
|
|
ASB Visa Debit Card
|
|
SBS MasterCard Debit Card
|
|
Banks with monthly fee accounts:
- Co-operative bank - $5/month
Three must-know tips when choosing a debit card:
|
While most debit cards are either free or $10/year, foreign exchange translation fees vary considerablyBanks charge very little for debit cards but can make significant profits if you use the card on overseas transactions. For example, Kiwibank will charge you NZ$2.50 for every NZ$100 you spend in a foreign currency - if you're overseas, these fees can quickly add up. The Wise debit card with a low fee that significantly outperforms every bank. Wise also offers debit cardholders a New Zealand bank account number and a leading app. Its NZ$14 application fee is one-off and locks in leading features and savings for life.
|
|
Download the bank app for easy insights into your moneyThe best way to manage your money is to make sure you can see how much you have. If your bank offers it, you can sign up for low-balance alerts via the app or website.
|
|
Understand ALL of the fees you’ll pay for non-standard debit card useFrom our research:
|
Frequently Asked Questions
We've listed a number of popular debit card questions to make the decision process easier. If you're unsure about anything, ask the issuing bank or provider before going any further or signing up.
Can I make a payment if I am overdrawn?
Yes. Debit cards will transact payments just as an EFTPOS card would. You will incur interest costs on the overdrawn balance - check with your bank to understand the fees involved.
Can I apply for a debit card if I have bad credit?
Yes - debit cards are not credit products, so there is a low risk of your debit card application being declined. Our guide to credit scores explains credit profiling in detail.
Is contactless payment safe?
Yes, overall - but if you lose your card in a public area, there is a risk of unauthorised payments being made if someone dishonest finds it. To minimise the risk, you will need to cancel the card if you misplace it and order a new one.
How long does it take for a debit card to arrive?
Among most New Zealand banks, the time is usually within five business days from the date you requested the debit card.
Are internet and mobile banking safe?
Yes - but as with anything online, protecting your details from fraud is essential. To do this:
- Never share or send your online/mobile banking information.
- If you use an app on your phone, make sure you regularly update it so that you have the latest security features.
- Delete any unusual emails about 'password recovery' or 'fraud alerts' - these are likely to be scams. If in doubt, contact your bank on its official number.
Our Top-Rated Card for Zero Annual Fee, an Innovative App and Ultra Low Foreign Currency Transactions - The Wise Debit CardWe like the Wise Debit Card because it lets you:
Alternative Debit Card - Avoid typical annual card fees with our alternative and trusted debit card:
|
|
