How to Keep a Debit Card Safe

There are a lot of good things to say about debit cards. They are very convenient to use, and they only let you spend what is in your account, unlike credit cards that you can easily abuse by overspending. But there are downsides to debit cards, and the only way to overcome them is by following a few rules. Follow them to be sure that your debit card remains safe.

Instructions

1

Understand the liability of the financial institution issuing the debit card. Often, the bank will protect you from theft but only for charges on MasterCard or Visa-issued debit cards for which you signed your name. In some cases, you are not protected by the issuer for money withdrawn from your account by someone who has stolen your card and was not required to sign. Be sure that your banks policy covers you for this, or obtain a debit card from another institution.

2

Check your account frequently. Most banks allow you to access your bank statement online. Look at it often, and make sure all the debit card transactions are legitimate. Recently, I found the amount of a debit card charge appearing on my statement that had been altered. I would have not found it had I not been vigilant.

3

Know when you should avoid using your debit card. Generally, you should use your credit card when making purchases online. For example, if the amount of a charge is disputed, the matter will take awhile to be resolved. Therefore, the money will be withheld in your checking account for quite some time if you use your debit card. Also, most online retailers provide security when you use a credit card instead of a debit card.

4

Check your credit report, at least once each year, for any misuse that has been reported regarding your debit card. Also, if your debit card is stolen, inform the credit bureaus immediately. You can receive your credit report once each year by visiting the website below. (See Additional Resources)

5

Know where your debit card is at all times, especially when it is being used. Keep track of the person who takes your card at the time of a purchase because it is quite simple for them to steal information on the card. Being aware could save you a lot of money.