I own a Debit MasterCard so I am aware that with all of its benefits, many downsides also come from these cards which can be setbacks to living your daily life. Responsible for carrying out your daily transactions, there are many situations to consider before getting a Debit Card in your name.
Safety and protection are very important when owning a Debit Card because they can be deadly to your personal well being. Owning one of these Bank or financial organization lending cards require responsibility and awareness of many hazards.
Compactness
Debit cards, like any monetary payment card are thin and easy to slide into your pockets to carry around with you at all times. They are commonly be placed in wallets, purses, pocketbooks, and any place where money is kept. Debit cards are compact and mobile so they can easily be carried around on your person, allowing an individual to have flexibility in with what they bring with them and the items they buy.
Downsides
Because they are easy to carry around, debit cards are prone to loss because of their small size. They can easily be forgotten by customers at stores especially when shopping in a rush. However, there are tactics that you can do when you lose your bank account card that will help prevent identity fraud and to keep thugs from spending your money.
According to the administration at Debit Cards Australia the best way to prevent fraud is to go to the financial institution in which your debit card belongs to and report it as stolen or loss. Thus, the card will be immediately deactivated so no one can use it. While most shopping centers and stores require a pin number in order to complete debit card transactions, there are still many places like fast food restaurants that only require a swipe of the card. The customer will then receive a replacement card to use in return.
Purposes and Various Usage
Unlike credit cards, the only way money can be put on Debit cards is through the attached bank account or financial institution that the card belongs to. This benefits the card owner in that you can never spend money that you do not have and go into debt.
However, there is a program called Overdraft Protection in the case a card owner does run out of money items can still be bought. Overdraft Protection is the act in which the bank charges the card owner typically around 35 dollars for every cent (varies depending on the financial institution) that is gone over. It is important that you state whether or not you want this feature on your card before you get it.
Debit cards can also be used at ATM machines to withdraw money from to receive actual cash to use instead of a card. It is important to be cautious of the ATM machine transaction fee (if there is one) because this will take money from your account which could be critical to carrying out a transaction.
References
Source: By Administration at Debit Cards Australia. “What to do when losing a debit card?” Debit cards.com. 16 June 2010.