Business and Finance

Posts Tagged ‘Debit Cards’

Whenever you need to pay for something you have the option of using credit cards or cash but now another item has been added to the list and this is the debit card. These cards make it more convenient to pay for your purchases and at the same time manage your spending. How is this possible you may ask? This kind of card can be used in the same way as a credit card wherein you do not need to bring cash with you simply charging items bought on the card itself.

It can be used as a credit card but the concept of using cash also comes into play wherein you can set a limit for your card by depositing a certain amount of money to your card’s account. This is your limit. Therefore, should you not have enough money in your account to pay for any item, you will no longer be able to use the card until you have deposited more money into your account. This is the safety guard that debit cards are able to offer.

With these pieces of information it may seem that this kind of card is a great way to pay for things but similar to credit cards these cards too have their downside. Debit cards may offer a significant amount of safety in terms of allowing the card holder to set a limit for their account to control their spending but if your card is stolen the thieves have easy access to your money and they can easily spend it with no questions asked. As a purchase is made the amount is automatically withdrawn or deducted from your account balance.

With this is mind, you need to safeguard your cards and here are some ways of doing so. The first thing to do is to keep track of your debit account and this you can do online on a daily basis. Read through the transaction report for the activities of your card to make sure that what has been deducted to your account is what you have really spent. Also, as with credit cards, be sure to report any problems you see with your account information immediately to the corresponding bureaus.

When you use your card, keep a watchful eye on the person handling your debit card when you pay for something to prevent them from stealing your card information. This is a common scenario with debit cards and it is simply better to be safe than sorry later on. Take note of your card’s liability policy as well. This is to ensure that you have adequate protection from fraudulent charges. The thing with fraudulent charges is that you can only be protected if you use signature debit cards and the like so consider this aspect when applying for debit cards.

Lastly, you should know when to use and when not to use your debit cards. For example, online purchases should be paid for using your credit card. Other situations where credit cards are more advisable to use are with car rentals, hotel payments, and even paying for gas.

Debit cards are great things to have especially when you need that financial backup for when you run out of cash or you reach your credit card limit. Keep this in mind so as not to use your debit amount for any unnecessary spending. Do not use your debit cards to pay for things that may require the banks to freeze your money for some time waiting for the transactions to clear. Be alert when you use your debit card so that you can prevent mishaps from happening.

Nowadays, it has become common for wallets or purses to be stolen or lost. Important items such as identification cards, ATM cards and credit cards are kept in wallets and purses.

So what would you do if you do lose your wallet or purse, and all your credit cards are there? The good news is that all reputable credit card companies have procedures and policies in place to help you when you do find yourself in such a situation. These companies offer protection against credit card loss or theft.

File a Report with Your Credit Card Company

The first rule in any emergency, including losing your credit card or having it stolen, is: don’t panic. Your credit card company has a toll free number that you can call to report a lost or stolen credit card. The first step you should take as soon as you discover that you’ve lost your credit card or that it was stolen is to file a report with your credit card company.

You need not worry about paying for fraudulent transactions after your credit card is lost or stolen. Based on a federal law, you are only liable for the first $50 of any fraudulent charges made on your credit card. However, you still need to report that your credit card has been lost or stolen even if you won’t be taking a significant loss.

If you report loss or theft of your credit card before any unauthorized transaction is carried, you do not have to pay $50. Nowadays, many credit card companies are even flexible with the $50 exposure, so make sure that you know what the terms are for your credit card.

Check Your Bill

After you lose your credit card, go over your latest bills with a sharp eye. If you recognize transactions that you didn’t make, immediately write to your credit card company. In the letter, include the date when you informed the company about the loss or theft of your credit card. Address your letter to the company’s billing errors department.

Bigger Risks with Debit Cards

If your card happens to be a debit card, you have bigger risks if it gets lost or stolen. The sooner you report about the lost card, the lesser the chance of you being held liable for any transaction. If you file a report before your debit card has been used, you will not be held responsible for any fraudulent charges. However, if you delay in filing a report, you stand of risk of being charged as high as $500 for any unauthorized transactions carried out using your lost card.

Track Your Cards

Keeping track of your cards is the best way to prevent your cards from getting lost or stolen. Know where you keep your credit cards. Don’t give out your PINs. Use a different PIN for each card and make sure that you choose a PIN that is hard to guess. Avoid using your date of birth, phone number or Social Security digits for PINs. It’s also good practice to change your PIN once every 60 days or so.

How things have changed through the years. There was a time when you had to run your check to the bank, cash it or deposit it and then write another check to get cash out of the bank. This all had to be done before the banks closed which was about 3 pm. And if you didn’t get this done by Friday afternoon you were hooped for the weekend.

Well those days are now pretty much over. No more running to the bank because most pay is now direct deposited and now pretty much everyone has a debit card which can be used at the automatic teller machines or (ATM). Today you can find these machines in your bank, grocery store and pretty much anywhere else you can think of.
When debit cards were first introduced you could easily tell what they were. They usually had the bank logo on them, your account number and your name. Today is a bit different though. Almost all debit cards look exactly like credit cards. They have credit card logos, they can be used anywhere to purchase things including on the internet

With a debit card you are using your own money to purchase items. The money being used in association with that card is your money. When you use a credit card you’re using borrowed money which you agree to pay back. This money is being borrowed from the issuer of the credit card which is usually a banking institution.
Both cards look and act in the same manner but when it comes to consumer protection there are some subtle differences. If someone steals your credit card you are only responsible for the first 50 dollars of theft unless you report the card before any charges are made to it. In this case you won’t be responsible for any fraudulent charges usually.

MasterCard and Visa offer zero liability protection where you won’t pay any charges if someone uses your credit card to make unauthorised purchases.
In the case of a debit card the fraud protection is similar with a few exceptions. Your liability is still 50 dollars but only if you notify your financial institution with in two business days of the loss of your card. If the card isn’t reported lost or stolen your liability can jump to 500 dollars. It’s also important to check your bank statement regularly. Check it with more than a glance. If there are any fraudulent charges on there and there not reported within 60 days you could be held totally liable.

In many cases you can get extra protection against fraudulent use of your cards through your home owners or renters insurance. You can check this out by reading your policy or checking with your agent.

So now you’re wondering which cards you should use for what. Most experts would agree that you should use your debit card for the same things you would use cash for. A good example of this is groceries. One thing to remember when using your debit card is that you must have sufficient funds in your account to cover your purchases.

When you are using a card on line it should be a credit card. In the case of using a credit card it is easier to dispute fraudulent purchases. Another thing is that if your purchase arrives broken the credit card company will remove any charges until the problem is resolved.
So in life both cards are necessary but you just have to make sure you know when to use them. Each card has a significant use and properly done. The sooner you learn how to use both cards with in your life the easier life will be.
Dale Mazurek

Recently, the Federal Reserve reported that debit card transactions made by Americans has been growing annually at a rate of more than 20 percent. The debit card transactions have even surpassed the number of credit card transactions processed. Debit cards, being quick and easy to use, have their lure when looking through your pocketbook and making a purchase.

Debit cards are becoming more and more appealing to people as a reliable and easy way to pay for things all the way from computer equipment to a night out for pizza. The appeal of this type of card is obvious.

What is it then that we are all missing about such a seemingly simple product? Why is it that we should NEVER EVEN CARRY AROUND OUR DEBIT CARD!

I’ll tell you and also explain why using a debit card can potentially cost you hundreds and even thousands of dollars. PULSE EFT Association reported in 2007 in it’s Debit Issuer Study that US Financial Institutions lost an estimated $662 million to debit card fraud in 2005. And this is back in 2005. How much hype have you heard about it lately in 2008. It doesn’t look as though the problem has exactly gone away.

When carrying around a card that is linked to your bank account, (WHERE YOU STORE ALL OF YOUR MONEY) you are essentially carrying around your entire cash balance in your pocket. Although cash or credit card seems more risky to some, there is absolutely no reason to think this way.

When losing a credit card, your financial liability when it comes to fraudulent charges placed on your card is limited to $50 thanks to the Truth in Lending Act. That means that once the charges are reported and a “chargeback” is initiated with your credit card company, you are, at most, liable for only $50 of the losses no matter how much the charge may have been.

When it comes to losing cash, you are pretty much limited to the cash you have on hand. Although I can’t imagine the recourse through the police system, haha, or local posters for cash losses are substantial, at least you only lost what you were carrying at the time.

Most people don’t realize the potential risks to their financial reputations were the debit cards to be compromised. And a large percentage of people keep their savings account linked to their checking account, think of the extra loot for the identity thiefs… those lucky guys. And you, the perfect mark, walking around unaware and happily whipping out the debit card for purchases.

Although the Truth and Lending Act helps to protect us consumers, debit cards do not fall under their jurisdiction and instead are regulated by another organization altogether. The Electronic Fund Transfer Act governs debit cards.

To keep the same protection and the limit of $50 for liability, a debit card user has to notify the bank within two business days of the charges. Any longer than two days and your financial liability jumps to $500 and then if you wait more than 60 days from the date of loss, you could lose anything and everything that the thief took.

Not everyone checks their account balances every day and can you imagine losing money in such a silly petty way, simply because it was “easier” to use the debit card. The easy way out is not always the smartest one. Especially when it comes to identity protection and debit card theft.

What are debit cards? These cards are accounts which are similar to a credit card except that it does not use crediting; instead it uses the money inside the account for purchasing directly. Unlike credit cards, debit cards are limited to the money contained in an account and does not allow you to owe anything from the bank.

Here’s how a this card works. When you apply for a debit card account, you are asked to deposit a certain minimum amount for that account. It also needs to have a remaining balance in order to continue functioning. If you deposit $100, your debit line will allow you only up to $100 worth of purchases, unless you deposit money on the account again. This is the beauty of debiting cards. It does not promote debts incurring and piling up on your doorsteps. For people who are bad payers, these cards are very well recommended in order to save themselves from the burden of ocean-deep debts.

To know which card is the best, you need to consider the services it offers.

Being able to withdraw money from any ATM branch

· This card should allow its customer to withdraw money from any ATM-linked terminals for no unreasonable charges.

Being able to Deposit

TT It should allow a customer to deposit money without unreasonable fees.

Being able to inquire balances

· A good debit should facilitate ease of balance inquiry thru any terminal without charges.

Purchases and Payments

· A good debit should not allow inaccuracy of payments and purchases.

· Shopping online should be allowed and easy.

· Transactions need to be authenticated as well.

· Bookings made with this card should be well accommodated.

· There should be a tough security of banks from fraud users and scams.

· The transactions made should reflect in the bank statements and show transparency.

A debit card is a great way for any student to be able to receive money from their parents while they are away from home at college. The debit card with one of the major logo’s like Visa, MasterCard, Discovery or American Express can be used just about everywhere there is an ATM machine. These cards are usually accepted by all major retail businesses and at hotels all around the country. Many times students are able to make reservations on airlines and book their hotel room by using the debit card. The debit card is very popular among students and parents since it gives both the opportunity to control the spending and keep track of how the money is best spent.

One of the nicest features about a debit card is that when you have obtained the card from your bank it is very easy to turn this card into a credit card where the student has access to cash when it is needed. Many times the bank will allow charges to go through even though the cash limit has been drawn against the account. It is wise not to depend on that unless you have made your card into a debit/credit card.

You can secure your card very easily by opening up a savings account that will guarantee funds in case of an overdraft. Most banks are very happy to let you go over if they have some secured funds in a savings account that they can transfer out to the card. You will pay a fee for this service but it is great to have especially when you are traveling.