5 Things You Didn’t Know about Debit Cards

Debit Cards

Debit cards sit in a lot of people's wallets all the time, even though a lot of people don't know all that much about them.  In some cases, this knowledge can make a big bad difference in a person's life.  So the following five facts about debit cards may catch you by surprise.  But even if you've heard it all before, remember and use this information.

They Often Carry Liability

By law, you're limited to $50 of liability on a credit card if you report the loss or theft within 60 days.  However, with a debit card you only have 2 days for that level of protection.  If you wait much longer, your liability level becomes limited only by the amount of money in your account, which can include direct deposits from your employer.

Debit Cards Don't Block Purchases Like Credit Cards

Blocking a purchase with a debit card is a lot like blocking an offensive tackle: it's tough, it's painful and you're likely to get hurt in the process.  This is why those scammy info product types always want your debit card info and not your credit card; they can double-charge you, charge you for a bunk of junk you don't want, or even charge you for things they don't even send you.  Getting back your money is a pain.

Portable Readers Scan Debit Cards

Portable card readers are inexpensive and easy to use.  They're also quick, and can be inconspicuous almost anywhere.  If a clerk takes a long time to scan your card or someone gets close to you, they could actually be reading your debit card's magnetic strip.  This can give them enough information to make a dummy card and access your account.

Debit Card Disputes - Things to Know

If you dispute a purchase someone else made on your debit card, your bank will freeze your money for up to 10 days while they investigate.  This means any automatic payment you have scheduled, from car insurance to your presta.com lease, will bounce. While there is no guarantee you'll get back your money, you shouldn't count on getting it back this week.

Your Card is Costing You Money

Some banks are beginning to charge debit card fees.  They do this because they don't make as much money for debit card purchases as they do when you use your debit card like a credit card.

Debit cards are nice to have sometimes.  However, there are also times when they're expensive and potentially dangerous ways to use your money.  Use them with caution.