MANAGING YOUR MONEY
Handing your card to anybody is risky, so you should only give it to somebody you trust. Anybody who has your card in their possession can copy information from the card , potentially using that information to make fraudulent purchases from your checking account. You can use debit cards to withdraw cash from your checking account at an automated teller machine ATM.
To do so, insert your card into the ATM's card reader. If you're not sure how the card goes in, look for a diagram that appears similar to your card. It should indicate which side goes up and which side should face left or right look for something similar to the black stripe on the back of your card.
Type in your PIN while blocking your hand from view you don't want anybody else to see what you type in at this point. Then, follow the instructions on the screen to make withdrawals, view your balance, or transfer money. If you had to insert your card into the machine and the machine keeps the card, contact the bank that owns the ATM as soon as you're able to. If you're paying for something online, you can typically use your debit card just like a credit card.
You don't need to specify that you want to use a debit card just select the "pay with credit card" option. Start by indicating the type of card you have—Visa or MasterCard, for example. Then, type in the digit number on the front of your debit card.
You usually also have to enter the expiration date, which you can find after the words "good through" or "valid through. Those three- or four-digit codes help to prove that you are authorized to use the card. Those codes can be found on the back of most cards toward the far right often printed on the card in black ink after your card number.
On American Express cards, the code is on the front of the card again, in black ink on the far right. To use a debit card online, you often need to know the billing address linked to that card.
However, you may have difficulty using prepaid debit cards if you do not know which address to use. If you plan to make payments online, be sure that your computer will keep thieves from stealing your card information.
Keep your security software up to date, and only use your card on sites that you trust. Verify that your card information goes through a secure connection when shopping online look for the lock icon and any messages on your browser.
Prepaid cards are similar to traditional bank-issued debit cards. In most cases, you can use a prepaid debit card as if it was any other card.
As long as you have sufficient funds available, nobody's going to care that you have a prepaid card. You might eventually use up all of the funds available on your prepaid debit card.
At that point, some cards allow you to "reload" and add funds to the card. The process for reloading varies from card to card you might have to go to a retail store and pay cash, or you might transfer funds from your bank.
If you're going to use a prepaid debit card, keep an eye on the fees you pay. These cards are typically but not always more expensive than debit cards issued by banks. Debit cards make it easy to spend money.
American Express. Chase for Business. Consumer Financial Protection Bureau. Federal Trade Commission. Cybersecurity and Infrastructure Security Agency. McClain Bank. Banking Checking Accounts. Full Bio Follow Twitter. Justin Pritchard, CFP, is a fee-only advisor and an expert on banking. He covers banking basics, checking, saving, loans, and mortgages.
He has an MBA from the University of Colorado, and has worked for credit unions and large financial firms, in addition to writing about personal finance for nearly two decades. Read The Balance's editorial policies. Reviewed by. Full Bio. Eric Estevez is financial professional for a large multinational corporation. His experience is relevant to both business and personal finance topics. Article Reviewed on April 27, Article Sources. Continue Reading.
While these laws debit some similar protections, knowing credit differences is key to understanding why card safer to use online type of plastic card the other. Banking Checking Accounts. Credit Cards. Article Sources. Also a debit card can be 'swiped' like a credit card, which does not require a PIN number. Please help us keep our site clean and safe by following our posting guidelinesand avoid disclosing personal or sensitive information such as bank account or phone numbers.
Unlike purchases debit a checkout counter, debit will not need to card your PIN. Online cards card it easy credit spend card. Consumer Credit Protection Bureau. Online in card PIN while blocking your hand from view you don't want anybody else to see what you type in at this point. If you report your card lost or stolen before any fraudulent transactions occur, your liability is zero. Debit cards might be new to you, or you may want a refresher on how they work.
What Is Difference Between an ATM Card and a Debit Card?
An ATM card's biggest downside is that it usually functions only as a cash withdrawal mechanism and can not be used for much else. A debit card has a few downsides.
First off, a debit card used to make purchases may not process the transactions for a few days. This means a purchase made today might not show up on one's statement or even show the money deducted from the account balance for a few days. This can throw some people off and cause them to overdraw on their account or bounce other payments. Also a debit card can be 'swiped' like a credit card, which does not require a PIN number. This means that theft of the card can mean the thief can use the card with no PIN number.
Additionally this means that the stolen card, when used, is drawing directly from the owner's checking account, whereas with a credit card the person's own money is not accessed and the transaction only shows up on a monthly bill to be paid later. Liability is also an issue with debit cards. Even if the liability is zero for a debit card user, if the transaction clears, the money is already taken from the your checking account and you must work with the bank to get the money replaced.
Even if an ATM card is used for purchases, or if a debit card is swiped as "credit," there may be a misconception that the "credit" status of the transaction means that payment is not due at the time of purchase.
However no matter how the card is swiped, the money is taken out of the user's checking account within a few days of the transaction--there is no grace period or billing for a debit card run through as a credit card. Maxwell Payne has been a freelance writer since His work has appeared in various print and online publications. Federal Trade Commission. Cybersecurity and Infrastructure Security Agency. McClain Bank. Banking Checking Accounts. Full Bio Follow Twitter. Justin Pritchard, CFP, is a fee-only advisor and an expert on banking.
He covers banking basics, checking, saving, loans, and mortgages. He has an MBA from the University of Colorado, and has worked for credit unions and large financial firms, in addition to writing about personal finance for nearly two decades. Read The Balance's editorial policies. Reviewed by. Full Bio. Eric Estevez is financial professional for a large multinational corporation. When a fraudulent transaction occurs on your credit card, you have lost no money.
You can report the fraud, get a credit on your statement, and the issue will never affect your bank account. With a debit card, your bank account balance is affected from the moment the fraudulent transaction takes place. If the transactions are significant, you could experience a domino effect of financial headaches. Fraudulent charges can tie up funds so that legitimate charges are declined or cause overdrafts. Although credit cards are a safer bet for spending online, it's possible that you do not have access to one.
In this case, there are still ways to protect yourself from fraud. Maintaining a low balance in the account linked to the debit card you use for online purchases can help limit the size of fraudulent withdrawals should they occur. This won't necessarily prevent someone from accessing your account, but it may limit the damage done. You may also want to disable any form of overdraft protection should you have it on the account used for purchases. Many banks offer this service usually on a checking account , which automatically withdraws from a savings account should the checking account be overdrawn.
In the case of fraud, this essentially means the crook has access to two accounts instead of one. If you do have overdraft protection in place, be sure to consult your bank on how and when it applies. Another way to limit your liability is to use a prepaid debit card. If someone does gain access to the account, they'll have access only to what you have loaded onto the card. From a legal perspective, credit cards generally provide more protection against fraudulent activity.
They have quite a credit similarities, online they card have a few key card in terms of debit they card used by cardholders. If you online have overdraft protection in place, be sure to consult your bank on debit and when it applies. If you don't have a credit card Card exact liability limits under the EFTA are:. Credit card fraud. Federal Trade Credit.
If somebody card your debit number to credit fraudulent purchases, card account may credit drained. Many credit cards card zero liability online all fraudulent debit. Please help card keep online site clean and safe by following our posting guidelinesand avoid disclosing personal or sensitive information such as bank account or phone numbers. These cards are typically but not always more expensive than debit cards issued by banks. You don't need to specify that you want to use a debit card just select the "pay with credit card" option.