What is a Debit Card?

Debit Card transactions are paid instantly, not in the future like Credit Cards. A Debit Card is linked directly to a cheque account and when a purchase is made, the money is deducted immediately from one’s bank account.

Things to consider about a Debit Card

• As transactions are paid instantly, there is no interest applicable. There are however transaction fees applicable and it is best to compare the rates of different banks.
• Transfer fees are to be considered if one needs to move money from one account to another.
• For greater convenience, select a debit card that will let one manage purchases, checks and bill payment from a smartphone.

Tips for using a Debit Card

• Keep purchase and ATM receipts
• Be aware of your bank account balance and how much money one has available to spend
• Keep track of all transactions, including withdrawals that are still pending.
• Review monthly statements for accuracy.  If you suspect a mistake or fraudulent use, contact your bank immediately

 Your financial institution may send alerts to your mobile phone when debit card activity exceeds your account limit, your online ID or passwords change, or large transactions are made.

Secure Your Information

There are 2 ways to use a Debit Card:

• Tap to pay for a transaction
• Insert PIN to pay for a transaction

Choose an unique PIN and do not share the number with anyone.  Don’t use obvious choices like birthdays as a code.

To keep your debit card PIN safe, avoid giving it out over the phone or in an email.

Know your limit

Many debit cards have daily spending and cash withdrawal limits that protect one in case the card is stolen. Remember, a Debit Card might be declined if one exceeds the limits, even if there is enough money in the bank.

Be aware of debit spend limits and use a bank app or contact the bank if the limits need to be adjusted. Also realise that should one process a debit transaction with insufficient funds in the bank account to pay for it, overdraft or fees for a bounced transaction may be applicable.