Debit Card Facts in 60 Seconds or Less
A debit card lets you use your checking account without writing a check. Instead, you simply "swipe" your debit card anywhere you see the card's logo and the purchase amount is deducted directly from your checking account. You can also use a debit card to withdraw money at ATMs.
Many people get confused between a debit card and a credit card. They're both the same size and have credit card logos, but that's where the similarity ends. A debit card is tied directly to your checking account and you can only spend the amount of money you have in your account.
When you use a credit card, you are actually borrowing money. You typically have a "grace period" to pay the money back. If you don't pay in full at the end of this period, you are charged interest.
And that's it ... everything you need to know about debit cards in just 60 seconds.
Expert Debit Card Tips
Always know your account balance before using your debit card. Remember, it's linked to your checking account and you can overdraw your account if you're not careful.
- Choose a PIN (personal identification number) that is difficult to hack. Avoid using your pet's name, birth date or phone number.
- Don't share your PIN with anyone. Keep it to yourself and don't write it down. Memorize it.
- Save all your receipts whenever you use your debit card. Compare them to your statement each month.
- If your card is lost or stolen, or you see suspicious activity on your statement, immediately contact the card issuer.
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