In today's fast-paced world, having quick and easy access to money when it is needed is not only convenient, but a comfort. With the use of a debit card, no longer is it necessary to write a check, buy stamps, be late on payments, or be unable to purchase an item because of not having enough cash in your wallet.
Debit cards are available from several sources including banks, credit unions, and alternative online websites that process payroll and auction transactions. Some retail stores provide their own in-house debit card linked to a checking account. Prepaid or pre-loaded debit cards are purchased with cash and used the same as a traditional card linked to a funded account.
For cards linked to a bank account or an online account, as long as funds are available, the card is viable. When the card is used for a purchase, whether in person, online, or over the phone, the transaction goes through a secure electronic system to validate the linked account has available funds. As long as funds are available, the transaction will be approved, if not, the transaction will be denied.
With prepaid credit cards, the purchaser determines how much money to assign to the card. Increments vary allowing the purchaser to spend only what is affordable. The card is used in the same manner as a standard credit card, only the money is pre-loaded. When funds are depleted, the prepaid card is reloaded with a determined amount.
Fees to use a debit card vary. If the card is used at your individual bank to withdraw money from a checking or savings account, there usually is no processing fee. If the card is used at a participating ATM, such as those found at a grocery store, gas station, or retail outlet, there is usually a processing fee that is added to the withdrawal amount; which is not the same as credit related fees associated with first time credit cards.
Your individual card will have an account number, expiration date, a Visa® or MasterCard® logo, and a security number and place for the card holder's signature on the back of the card. Once a debit card is issued, a pin number is assigned. The pin number is the security code for accessing the card. For safety purposes, do not keep your pin number with your card.
When making a withdrawal from an ATM machine, the pin number is entered as a security measure. For purchases in person, the card is swiped through a machine at the cash register and the pin number entered in order for the purchase to be processed. When using a debit for online purchases, the security code number on the back of the card is used as validation. These types of cards are accepted wherever the Visa® and MasterCard® logos are displayed.
David is a graduate of Loyola Marymount University, holds a B.A. in Communications and is a senior writer for StudentCreditCards.com as well as additional financial portals.