Introduction
Money used to rule the world. Nowadays, many people like the ease of utilizing a debit card to make purchases. Debit cards are widely accepted and reasonably simple to obtain.
When using a debit card, transactions can frequently be completed in under a minute, whether you’re using it to make a purchase at the checkout or withdraw money from an ATM. Debit cards are frequently linked directly to your checking account.
The process usually consists of a few straightforward steps, regardless of whether you want to apply for a debit card online, through a bank’s app or website, or in person at a branch.
Open a checking account
When you use a debit card, which resembles a credit card in appearance, money is deducted from your checking account. You must open a checking account at a bank or credit union if you don’t already have one. Depending on your preferences and the options offered by your bank, you can finish that process in person or online. Several forms of legal identification are often required, most frequently a mix of a driver’s license, passport, and social security card. You might require an adult co-signer on the account if you’re under the age of 18.
To open the account, you must also provide payment information. Check with your bank to find out what it requires as balance minimums might vary and can be as little as $1. then submit an application to begin the procedure.
Make a debit card request
You can ask for a debit card associated with the account as part of the account opening process. Sometimes, it could take seven to ten business days for your card to be delivered by mail. However, a lot of banks provide same-day access to a debit card that you can use right away.
Activate your card — and start using it
You must activate your debit card once you have it in your possession. You can often do this quick and simple process over the phone, online, or with an ATM. In order to prevent potential hackers, use a secure, password-protected internet connection if you decide to activate the card online.
You can choose your own PIN for your debit card or use one that was produced by the bank; in fact, you can frequently modify it while the card is being activated. Your Social Security number, birthday, phone number, or any other information that might be used to identify you easily shouldn’t be your PIN. Keep your PIN confidential at all times.
Things to watch out for when you have a debit card
Although debit cards are a practical and frequently secure method of payment, there are a few things to remember when using one wisely and preventing costs.
Overspending
It’s crucial to keep your spending within your balance because your debit card uses funds from your checking account; otherwise, you risk paying expensive overdraft penalties. By keeping an eye on your account balance using the mobile app provided by your bank or by balancing your checkbook, you may prevent overspending.
Fees
There may be additional charges for possessing a debit card or using it to access funds in addition to overdraft fees.
- ATM fees: Using your debit card to get cash at an ATM that’s not affiliated with your bank can result in fees from both your bank and the bank that owns the ATM. On average, these combined fees for using an out-of-network ATM total $4.59, according to Bankrate’s 2021 checking account and ATM fee study.
- Monthly maintenance fees: Debit cards are tied to checking accounts, and some banks charge service fees on a monthly basis. Often the fee may be waived if you maintain a set minimum balance in the account that can vary by bank.
- Foreign transaction fees: Using your debit card for purchases or ATM withdrawals outside of the U.S. can result in foreign transaction fees, which average at 3 percent of each transaction.
What to do if your debit card is lost or stolen
If your debit card is lost or stolen, call your bank right once. The bank may disable the card and begin the replacement process.
By entering into your account on the bank’s mobile app or website, you can lock or unlock a debit card at some financial institutions, including Chase, Capital One, and Discover. When you’ve lost your debit card but subsequently manage to find it, this can be useful.
Alternatives to a bank account debit card
Prepaid debit cards
Prepaid debit cards can be used to make purchases because they are pre-loaded with money. You can only spend the amount that is linked to the card, much like with a debit card connected to a checking account. Anyone without a bank account can benefit from prepaid debit cards, and parents can use them to teach their kids about money management.
Credit cards
Credit cards are frequently regarded as a safer alternative to debit cards since they may offer increased fraud liability protections that debit cards do not. When someone uses your credit card fraudulently, you may have time to discover the transaction and challenge it before being held responsible, but when someone uses a debit card fraudulently, money is promptly taken out of your checking account. Due to this, challenging illegal debit card charges and reclaiming the money may take longer.
Cash
Cash payment can be a strategy to control spending even though it may not be as handy as using a debit or credit card. You can avoid overdrawing your bank account or paying interest on a credit card when you don’t make the full balance payment on time by paying for items with paper money.
Conclusion
A debit card may be a practical way to make purchases and withdraw money from ATMs. When checking accounts are offered by banks, debit cards are extremely simple to obtain from those institutions. Finding a bank with a checking account that doesn’t have a minimum balance requirement or maintenance fees, as well as those that offer interest checking accounts or incentives checking accounts, can pay off for the finest debit card experience.