Once upon a time, cash was king. These days, many prefer the convenience of using a debit card over making purchases. debit cards are relatively easy to obtain and are accepted almost everywhere.
A debit card is usually linked directly to your checking account, and transactions can usually be completed in a minute or less, whether you’re making a purchase at the register or withdrawing money from an ATM.
Whether you’re looking to get a debit card through a bank’s website or app, or by visiting a branch in person, the process typically involves a few basic steps.
first step: open a checking account
A debit card looks like a credit card, but it draws funds from your checking account when you use it. If you don’t already have a checking account, you’ll need to open one at a bank or credit union. You can complete that process online or in person, depending on your preferences and your bank’s offerings. Typically, you’ll need several forms of valid identification, often a combination of a driver’s license, passport, and social security card. If you are under 18, you may need an adult to co-sign the account.
You will also need to provide a form of payment to open the account. Minimum balances vary, though they can be as little as $1 or less, so check with your bank to find out what’s required. then fill out an application form to start the process.
step two: request your debit card
As part of the account opening process, you may request a debit card connected to the account. in some cases, you may have to wait seven to 10 business days before your card arrives in the mail. many banks, however, offer same-day access to a debit card that you can use right away.
step three: activate your card and start using it
once you have your debit card in hand, you will need to activate it. this is a quick and easy process that you can usually do over the phone, online, or using an ATM. If you choose to activate the card online, be sure to use a secure, password-protected internet connection to avoid potential hackers.
Your debit card may come with a bank-generated pin, or you can choose your own; in fact, you can often change it during the activation process. your pin should not be your social security number, birthday, phone number, or any other number easily associated with you. make sure to keep your pin private.
aspects to consider when you have a debit card
While debit cards are a convenient and often secure form of payment, there are a few things to keep in mind when it comes to using a debit card responsibly and avoiding fees.
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excessive expenses
Because your debit card draws funds from your checking account, it’s important that you don’t spend more than your balance or you could incur costly overdraft fees. You can avoid overspending by checking your account balance through your bank’s mobile app or by balancing your checkbook.
fees
In addition to overdraft fees, several other fees may be associated with having a debit card or using it to access cash.
- ATM fees: Using your debit card to obtain cash at an ATM that is not affiliated with your bank may incur fees from both your bank and the owner bank from the ATM machine. On average, these combined fees for using an out-of-network ATM add up to $4.59, according to Bankrate’s 2021 ATM and Checking Account Fee Study.
- Monthly Maintenance Fees: Debit cards are linked to checking accounts, and some banks charge monthly service fees. the fee can often be waived if you maintain a set minimum balance in the account which can vary by bank.
- foreign transaction fees: using your debit card for purchases or ATM withdrawals outside the us may result in foreign transaction fees, which average 3 percent of each transaction.
what to do if your debit card is lost or stolen
Contact your bank immediately if your debit card is lost or stolen. the bank can deactivate the card and start the process of replacing it.
Some banks, such as Chase, Capital One, and Discover, allow you to lock or unlock a debit card by signing in to your account on the bank’s mobile app or website. this can be convenient in situations where you have lost your debit card but can later find it.
alternatives to a bank account debit card
prepaid debit cards
A prepaid debit card is loaded with funds in advance and can be used to make purchases. Like a debit card associated with a checking account, you can only spend the amount of money that is associated with the card. Prepaid debit cards can be useful for anyone who doesn’t have a checking account, as well as for parents teaching their kids how to manage money.
credit cards
Since credit cards can come with enhanced fraud liability protections that debit cards don’t, credit cards are often considered a safer alternative. If someone makes a fraudulent purchase with your credit card, you may have time to become aware of the charge and dispute it before being held accountable, while the funds are removed from your checking account quickly after the corresponding purchase is made with the credit card. Debit. this can make it slower to dispute unauthorized debit card charges and recover funds.
cash
While paying with cash may not be as convenient as using a debit or credit card, it can be a way to avoid overspending. Using paper money for purchases can prevent you from overdrawing your checking account or incurring interest charges on a credit card when you don’t pay your balance in full on time.
end result
A debit card can be a convenient way to make purchases and access cash at ATMs. debit cards are relatively easy to obtain from banks that offer them with checking accounts. For the best debit card experience, it can help to find a bank with a checking account that doesn’t require a minimum balance or charge maintenance fees, as well as those that offer interest-bearing or rewards checking accounts. /p>