Function

• Debit cards provide a convenient way for consumers to make purchases using the money in their checking or savings accounts. When a purchase is made, your debit card is swiped through or your card number is entered into an electronic device that contacts your banking institution to request a payment. If a card is swiped, the consumer may have to enter a pin code or sign a receipt. If the card number is manually entered, a receipt may or may not be issued. The payment is either approved or denied based on the availability and amount of money in your account.
  
  

Types

• A debit card is an automated teller machine (ATM) card with either the Mastercard or Visa logo on it. VISA calls its card "checkcards" and Matercard calls their cards "Mastermoney." Some smaller banks still issue standard ATM cards that do not have the Mastercard or Visa logo. If your bank card does have one of these logos, it will be accepted anywhere Mastercard or Visa credit cards are accepted.
  
  

Benefits

• Since debit cards are accepted almost everywhere, carrying one eliminates the need to carry cash. This can make tracking your personal finances very easy. Since debit cards are connected to your bank account, you can utilize your banks online banking system or automated phone service to keep current on how much money you're spending and how much money you have available. Debit cards can also be used to pay bills, eliminating the need to write and mail bill payments, saving you time and money.
  
  

Features

• Debit cards have the issuing banks name, the cardholder's name, and the card number and expiration date on the front. The back of the card has a signature box and a number inside the signature box. The three digit code at the end of the number in the signature box is often used to verify your card when purchases are made over the phone using a debit card. Debit cards are plastic and similar in size to credit cards.
  
  

Warning

• When used at gas stations and at other select locations, debit card purchases do not require a pin code or a signature to complete the transaction. This can make it easy for anyone to use your debit card. Protect your debit card by storing it in a secure location and by using a standard credit card when making purchases over the phone or internet. Credit cards usually offer better protection against fraudulent activity (See Resources).