INTRO
Debit cards function similarly to credit cards
except that debit cards allow you to withdraw funds directly from a checking
account. In other words, when you use a debit card you are spending money you
have already earned. Responsible debit card use can help you avoid fees and
dangers that may end up costing you money
Check Your Account Balance Regularly
Since debit cards draw money from a checking
account, you can only draw as much money as you have in your account.
Overdrawing your checking account may result in fees from your bank. Many banks allow users to check account balances online, which can make it easy to keep
tabs on how much money you have to spend. Some accounts also offer overdraft
protection to protect you from fees if you happen to draw more than your
balance.
Cancel Lost Cards Immediately
Debit cards and credit cards are easy to
misplace. If you lose your debit card, call your bank and cancel the card as
soon as possible. Unlike credit cards, it may be difficult to recoup fraudulent
debit card charges because money is withdrawn directly from your checking
account. For this reason, consider using a credit card instead of a debit card
for normal use and online purchases and then use your debit card to pay off the
credit card.
Destroy Old Cards
If you never use a certain card or receive new cards in the mail, destroy your old cards. New debit cards may have new expiration dates and security codes, but the card number will usually be the same.
Memorize Your PIN
Debit cards allow users to
set up a personal identification number (PIN) that must be entered when
withdrawing funds from an ATM. Set up a PIN as soon as you receive your debit
card and commit the number to memory. Bankrate recommends that debit card users
never write their PIN on their card.
Keep Your Card in a Safe Place
You should treat your
debit card as if it were cash. You probably wouldn't leave $3,000 in cash
sitting on the kitchen counter, but that's essentially what you are doing if
you leave your debit card on the counter with a checking balance of $3,000.
Keep your card with you in your wallet or purse when you are out and put it in
a safe, drawer or other hidden location when you are not using it. Never leave
the card sitting out where others can see it.
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