With the US and the global economy still feeling the tail-end of the recession, many consumers have kept mum with regards to their spending and have tried their hardest to keep all of their finances inside their households.
Together with frugal spending and saving, more and more people are finding the advantages of using debit cards more appealing than using their counterparts, the credit cards. It is true that debit cards offer users a more responsible way of spending and is more convenient to use than most credit cards. But when used improperly, just like credit cards, they can seriously hurt users financially. And because debit cards are more loosely protected than credit cards, as they come with schedule of fees different from that of credit cards, knowing basic information about debit cards and their usage will make for better and responsible spending. Here are some things to remember for users with debit cards and frequently use them in their transactions.
Basic in the list is to know and understand everything written in the bank’s terms and conditions with regards to their debit card services. Users should take note the schedule of fees that their banks give. They should know the important rates such as basic transaction fees, over-limit fees, and cash-withdrawal fees among others.
Also, they should carefully review every billing statement that the banks send them. They should cross-check them with the transaction receipts to make sure that no dubious transactions are being debited to one’s name.
Since a debit card is always attached to an existing bank account, debit cards should be protected with utmost care and not just placed anywhere open and unsafe. PIN numbers should also be formulated in a way that not even the smartest thief or someone the user knows can figure them out.
Also, be aware of the rewards program that banks have for using their debit cards. Using debit cards is indeed a more responsible way of financing transactions than debit cards. But like credit cards, it should also be given the proper attention and due diligence that it deserves.
