What is a Debit Card?

Answer:
A debit card provides you with the convenience of a

credit card – without the inconvenience of interest payments. Debit cards look like credit cards and work like cash or personal check. When you pay with a debit card, the amount is automatically deducted from your bank account.

When you use your debit card, you’re accessing the funds tied to your bank account. Of course, you’re usually limited to the amount of funds available in your account. If you don’t watch your account balance it may be easy to overdraw your account and rack up overdraft charges.

A debit card usually requires a personal identification number or PIN; however, some debit cards are set up so that they may be used as a credit or debit card. If you choose to run your debit card as a “credit” most merchants will ask you to sign a credit receipt.

There are certainly advantages to a debit card - you don’t have to carry cash or a checkbook – and you don’t have to pay any interest charges.

As far as disadvantages, you need to make sure there are enough funds in your account so you won’t be charged overdraft fees when you use your debit card. Depending on your financial institution, there may certain bank fees – so be sure to check with your bank.

Unfortunately, identity theft continues to be a growing concern – so keep your financial information safeguarded – included your debit card!