Debit cards are used every day in our society but are we
using them correctly? Allie Johnson, who wrote the article “9 Best Practices
for Credit Card Use”, thinks that there are many ways we are using our debit
cards wrong. Allie (Johnson 2010) gives us some simple every day steps to help us when
using our debit cards.
1. Know Yourself
If you know you tend to spend your
money way to easily then maybe instead of pulling your debit card out every time
you crave a snack use cash instead. This normally helps you to not overspend because
you only allow yourself so much cash and when it is gone, it’s gone.
2. Keeping Track of Your Transactions
When you purchase something or pay a bill you
should always write it down. Keep track of all your purchases to avoid over drafting
and the fees that come with it. Married couples with joint accounts especially
need to do this and keep good communication to avoid financial disasters in the
future.
3. Don’t Opt in
In 2010 the federal regulations passed a
new law stating that the banks are prohibited to allow customers to overdraft
unless opting in first. Even though the bank will urge you to do this instead
set up an overdraft protection plan by having your checking connected with your
savings. You won’t have to pay a fee and you have a piece of mind just in case
something unexpected decides to come out.
4. Watch out for Holds
When going to a hotel, renting a car, or
sometimes buying gas always ask if they will be putting a hold on your card. If
they do make sure you ask for how long the hold will be on and for how much.
Experts say to use your credit card for these so you don’t have your money tied
up when you need it.
5. Debit vs. Credit
When using your debit card to purchase
something they always ask if it credit or debit. When this happens use debit
and punch in your code so your transaction gets put on your account immediately
rather than choosing credit it could be days till its posted, leaving you
thinking you have money still when you don’t.
6. Choose Your Pin Number Wisely
When choosing your pin make sure it is just
a random bunch of numbers that’s easy for you to remember, otherwise a criminal
could easily guess your birthday, kids birthday, social security, or even just
1111.
7. Check Your Account Daily Online
When using your debit card it is very easy to
not notice a double charge, hold, or fraud happening on your account. This is
why it’s very important to check daily because if you don’t you lose your money
not the banks.
8. Link Your Accounts Wisely
When linking your checking to your savings
for protection be careful how much you want to put in there and how many
accounts you link to. Remember if your account gets hacked all the accounts
linked to checking becomes the criminal’s money.
9. Credit Cards are Best for big Purchases
When making large purchases your credit
card is best because your debit card doesn’t have half as many consumer
protections as a credit card. So if you buy something and it’s not delivered
you can get your money back rather than having it be gone forever.
Now that you know a little more about how to
use your debit card and when not to , I wish you the best on your future
purchases.
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