Barista holds card reader for customer to pay using digital wallet on his phone.

Tips for Using Your Digital Wallet Responsibly

Last Updated: October 17, 2024

4 min read

Table of contents

Key Points:

Digital wallets can store credit card payment information on your mobile device.
You can choose a default card in your digital wallet, like one that offers you the most cash back on your purchases.
Maintain good financial habits and don’t overspend while using your digital wallet.

A digital wallet allows consumers to store all of their credit cards directly on their mobile phone (and on many smart watches). This makes your card available at the point of transaction without carrying the physical card or fumbling around for it in your bag or wallet. Using this technology offers convenience and even the ability to maximize the rewards you earn.

Digital wallets give you the option to leave your cash and cards at home. But what’s the right (and wrong) way to use this digital payment method?

Choose your default card carefully

Set up your digital wallet app with a default mobile payment can help make using the wallet that much easier. However, it may be best to choose the credit card that benefits you the most—like one that gives great rewards for your everyday purchases.

For your digital wallet’s default card, try to pick the card that has the lowest interest rate. Or choose the one with the rewards program that can earn you the most on the purchases you make often.

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Store multiple credit cards to maximize rewards

Perhaps the greatest benefit of a digital wallet is the ability to store all your credit cards directly on your phone. Not only does this mean not carrying around a swollen wallet, but it also allows you to easily access the credit card that could earn you the most rewards on a given transaction.

Say you’re in the checkout line at the supermarket using your physical wallet but can’t find the card that earns extra cash back on groceries. Instead, of using whatever physical card is readily available, you can open your digital wallet and use a card that gives you cash back.

Increase your card security

Using a digital wallet provides a few security benefits:

A mobile wallet allows you to use contactless payment so you’re not handing your card to a stranger.
Digital wallets use tokens (a substitute for your private account number), so your actual card number isn’t with merchants.
It’s harder for someone to use cards on your smartphone than it would be if they found your wallet full of credit cards on the street.

Did you know?

You can add your Discover Cards to your digital wallet to help you maximize your cash back rewards, from your weekly supermarket trip to gas and restaurant purchases. Plus, we'll automatically double all the cash back you earn at the end of your first year.¹

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Practice navigating your digital wallet’s features

Some credit cards include the opportunity to earn rewards for purchases at specific times of the year. Others may offer rewards for travel or have different reward program structures completely.

Digital wallets typically offer you options for selecting among the cards they contain by going into your smartphone settings. That could mean changing the default card or removing a card. To make the most of your cards, practice how to select different cards in your digital wallet before you’re standing at the point of sale. The more confident you feel about the features and navigation of your digital wallet, the less likely it is that you’ll choose the wrong card in a busy checkout line.

Don’t abandon your good financial habits

Digital wallets change the way you pay, but they shouldn’t impact the financial habits you’ve already established that help you live within a budget. Although you’ll use your mobile device for contactless payment instead of using a physical card, the rest of the transaction is the same.

Check your financial and credit card accounts frequently to make sure you know what you’ve spent and where. This will also be a double-check that all purchase amounts are accurate. If you link the card accounts with a budgeting app, you’ll see the transactions posted there, too.

Use your mobile credit cards wisely

Just because you have a digital wallet on your mobile phone doesn’t necessarily mean you should add every debit card or credit card. If some of your credit cards have high interest rates, it may make sense to leave them out of your digital wallet. If the ease of having a credit card in your mobile wallet leads to a habit of overspending, think about leaving credit cards out of your digital wallet app altogether.

As you look for the best ways to manage your financial life, digital wallet payment technology is something worth checking out. Adding a debit card, credit card, or even gift card to your mobile wallet can be easy, often requiring you simply to enter the card number, expiration date and CVV. You may find you gain a whole new world of convenience and security, all from the comfort of your phone.

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