Should You Be Using A Debit Card?

When using a debit card, it is important to know that they are directly joined to your checking account. Many people use these cards as if they were a credit card, especially if they are considered a Visa or a MasterCard, meaning the logo of either one of these companies is present on the card. Debit cards do not charge any sort of fees because the amount of money in the account is the amount of money available on the card. With these facts, is a debit card a good thing to have?

Debit cards are given to someone who opens a checking account with a bank and opts for a card. Basically, a debit card is a credit card without the hassle of fees and penalties. Users never have to worry about late payments are a complete failure to make a payment. These cards make it much easier to buy both online and in a store. Today, plastic is the way to go.

With a debit card, some people are able to learn how to manage money. The cards are attached to accounts with acts like a safety net to keep you from going over the amount that you have available in your account. Cash and checks both are quickly coming a thing of the past as debit cards are used more and more.

You now know what a debit card is and how it works and there is the other side of this coin to consider. If you think you can control your spending habits and not use the debit card unwisely they can be a great benefit to you. However some do not use them wisely and if not used carefully they can have great troubles.

Because the card works with the checking account, transactions are recorded and processed through the use of a computer program. The debit card's unsuspecting enemy is the ATM machine. Though these machines to so seem like Heaven on Earth, they are not, despite the fact that within two minutes, you have money shooting out into your hand.

If you are not careful and responsible with a debit card the money you deposit will disappear so quickly it's like it was never even there. To make matters worse you can overdraw your account very quickly without even writing and bouncing a check. The receipts that you get from ATM machines are not accurate and do not tell the correct amount that is in your account or what transactions have cleared.

Debit cards can also be blocked by your bank or a store. If you purchase something for $40 at a store and the store has a $50 block on your card and you want to buy something that is $10 or more, you might run into trouble until the block on your card goes away.

Debit cards are also subject to blocking just like a credit card. This means that some merchants can block off a set amount of money in the account until your transaction with them is processed. Case in point: using a debit card to pay for a $20 visit to the gas station, but the store blocks off $50 on the card. If the extra $30 was earmarked for something else, you will run into problems until that block is removed. Debit cards are a good choice if managing money is a problem. But, learn you use them wisely or you could run into trouble with your checking account balance.

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