What is a debit card?
A debit card is a plastic card that can be used in Automated Teller
Machines (ATMs) to get money or at Point of Sale (POS) terminals to buy something. Many businesses also allow you to obtain cash when making a purchase. Some businesses add a fee if a debit card is used.
Still, debit cards are convenient and some can be used in other countries. Generally, your debit card can be used where you see the logo on your card posted on an ATM, a store's door or a cash register. You
usually do not have to show other types of identification when using your debit card.
Debit cards are sometimes called check cards because the amount of your purchase is automatically deducted from your
checking or share draft account. Be careful not to confuse them with your credit card. Some financial institutions charge a monthly fee and/or a per transaction fee for debit card use. Check with your
institution.
Types of debit cards:
PIN-Based Debit Cards
Your Personal Identification Number or PIN (account password) authorizes the transaction.
The amount of the transaction is immediately deducted from your account.
Financial institutions generally issue these cards to all account holders requesting them.
A yearly fee is usually charged for carrying this type of debit card.
Signature-Based Debit Cards
Signature based debit cards offer the same services as PIN-based debit cards, including the following features:
- Your signature authorizes the transaction.
- The amount of the transaction is generally deducted from your account within two to three business days after the transaction.
- You may have to meet financial institution requirements (satisfactory credit history, account in good standing and/or account open for a specified period of time) to receive cards with this feature.
Check with your financial institution for specific information.
- Most of the time they are closely related to a credit card brand, giving you access to a larger network of ATM's and businesses; locally, nationally, and internationally.
Debit Card Safety Tips
- Record your debit card transactions in your checkbook register. Compare them to your statement every month. Contact your institution immediately if there are any errors. Call first, and follow up
with a letter.
- Keep your debit card in a safe spot. Do not share your PIN with anyone. Know where your card is at all times.
- Keep your account number, card expiration date and the telephone number of your institution handy in case your card is lost or stolen.
 What do I do if my debit card is lost or stolen?
Call your institution right away, and follow up with a letter. The longer you wait, the more money you may lose. if you report your card missing before it is used , you will not be held responsible for any unauthorized use. If you report your card missing after it is used, the amount you can be held
responsible for depends on how quickly you report the loss.
- Within two business days after you learn of the loss or theft of your card - you can be held responsible for no more than $50 in unauthorized withdrawals.
- After two business days, but within 60 days after the institution sends you a statement showing an unauthorized withdrawal you could lose up to $500.
- After 60 days - you could lose all the money that was taken from your account after the end of the 60 days and before you report your card missing.
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