Debit Card

Debit cards, also known as check cards look like credit cards or ATM cards (automated teller machine card). It operate like cash or a personal check. Debit cards are different from credit cards. Credit card is a way to "pay later," whereas debit card is a way to "pay now." When we use a debit card, our money is quickly deducted from the bank account.

Debit cards are accepted at many locations, including grocery stores, retail stores, gasoline stations, and restaurants. Its an alternative to carrying a checkbook or cash.

With debit card, we use our own money and not the issuer's money.

In India almost all the banks issue debit card to its account holders.

Features of Debit Card

• Obtaining a debit card is often easier than obtaining a credit card.
  
  
• Using a debit card instead of writing checks saves you from showing identification or giving out personal information at the time of the transaction.
  
  
• Using a debit card frees you from carrying cash or a checkbook.
  
  
• Using a debit card means you no longer have to stock up on traveler's checks or cash when you travel.
  
  
• Debit cards may be more readily accepted by merchants than checks, especially in other states or countries wherever your card brand is accepted.
  
  
• The debit card is a quick, "pay now" product, giving you no grace period.
  
  
• Using a debit card may mean you have less protection than with a credit card purchase for items which are never delivered, are defective, or were misrepresented. But, as with credit cards, you may dispute unauthorized charges or other mistakes within 60 days. You should contact the card issuer if a problem cannot be resolved with the merchant.
  
  
• Returning goods or canceling services purchased with a debit card is treated as if the purchase were made with cash or a check.

Tips for responsible use of Debit Card

• If your card is lost or stolen, report the loss immediately to your financial institution.
  
  
• If you suspect your card is being fraudulently used, report it immediately to your financial institution.
  
  
• Hold on to your receipts from your debit card transactions. A thief may get your name and debit card number from a receipt and order goods by mail or over the telephone. Your card does not have to be missing in order for it to be misused.
  
  
• If you have a PIN number, memorize it. Do not keep your PIN number with your card. Also, don't choose a PIN number that a smart thief could figure out, such as your phone number or birthday.
  
  
• Never give your PIN number to anyone. Keep your PIN private.
  
  
• Always know how much money you have available in your account. Don't forget that your debit card may allow you to access money that you have set aside to cover a check which has not cleared your bank yet.
  
  
• Keep your receipts in one place -- for easy retrieval and better oversight of your bank account.