Debit Cards

Even though debit cards (or check cards) have become widely used, many people are unfamiliar with them. They look like credit cards or ATM cards, but function like cash or personal checks. When you use a debit card for a transaction, the money is quickly taken from the checking or savings account to which the debit card is linked.

Debit cards can function in two ways: like an ATM card for immediate withdrawals of cash from an account and like a check when buying something. The money used to pay for the transaction is usually deducted from your account within a day or two, just like a check.

Advantages of a Debit Card

• Easier to obtain. Most financial institutions have less stringent qualifying standards for debit cards vs. credit cards.
• Convenience. Unlike a check, when using a debit card for a purchase, personal identification is usually not needed.
• Safety. You don’t have to carry cash or a checkbook.
• Readily accepted. When out-of-town or the country, debit cards are usually more widely accepted than an out-of-town check.

Some Guidelines

• Guard your debit card against loss or theft. Keep it in a safe place just like cash, credit cards, or checks.
• If you lose your debit card, notify your financial institution immediately. You will also probably want to close your account and open a new one.
• Choose a PIN number that only you know. Don’t use your phone number or birthday.
• Guard your PIN number. Memorize it and never write it on your card.
• Keep receipts from all your debit card transactions.
• Review your statements immediately and investigate any unknown transactions.