One of the very obvious advantages of using debit cards is that eliminates the need to write checks.  For people on the go (those who value greatly every seconds), debit cards are their next best friends.  In times when we are in a hurry, we can just swipe our debit cards and payments are done. Another advantage of debit cards is that payments are made easy and hassle-free.

Debit cards, or also known as electronic checks, can be used to pay for products purchased online.  Debit cards make online shopping very convenient.  So the next time you shop online, worry no more for your payments, debit cards are always beside you. Now, you can also receive instant alerts and confirmation for your payments made through your debit cards.  You will receive a text message once payments are made.  This new feature of debit cards is very a helpful one.

Having a debit card of your own is simple.  Debit cards are issued to bank clients with checking or savings accounts.  Most of the time, banks can issue the debit cards as soon as you open a checking or savings account or they can just send you your debit card through mail.  All transactions and payments made using your debit card will be credited to your checking account.  Once you obtain your debit card, the next thing to do is activate it using an ATM, or by visiting the bank website.

Most, if not all, banks in the US issue debit cards. The very first bank to do this is the First National Bank in Seattle.  Debit cards have been of existence since 1978 when the First National Bank of Seattle issued debit cards to their clients, mostly business executives, with large savings account.  Since then, US banks such as HSBC, Bank of America, Citigroup, Wells Fargo, Citizens Bank and many more have been issuing debit cards.

It is also because of technology that there have been a growing number of fraudulent activities or uses of debit cards.  The best thing to do is never share your PIN with anyone.  It is better to be safe than sorry in the end.  There might also be people who contact you by email or phone and ask for your debit card PIN and other details.  Do not ever give your debit card PIN to these people.  There have been a growing number of phishing scams, so beware. Another tip to avoid fraudulent use of debit cards is don’t write down your debit card PIN on your debit card. There are people who do this (those who can’t remember their PINs). Do not be one of them.

With the fast advancement of technology, who knows how debit cards will be used in a year or so. Surely, debit cards are very useful and advantageous. Once you fully understand how these magic debit cards work and what their uses are, you will surely want to own one. For your convenience, you can keep your debit card in a debit card wallet.

The first debit card was first issued in the late 1970s by the First National Bank. These were primarily given to loyal account holders with good credit and acted similar to a guarantee card. Several years later, the initial debit system was implemented, utilizing the existing credit card and ATM systems. With the emergence of newer advancements in technology, debit card expenses were directly subtracted from a checking account. Symbols such as the Plus, Visa or Mastercard were seen on these cards. Over time, debit cards have outnumbered the use of checks and are frequently used to pay for food and other smaller transactions. It has been predicted that the use of debit cards is a step towards a cashless system.

Debit cards offer several advantages over other modes of payment. In comparison to cash and checks, debit cards are safer to carry when traveling. As a limited amount of cash is deposited into the account, it helps the cardholders control their spending. Similar to credit cards, debit cards can be used to pay for purchases and bills online but do not carry the same high interest rates. In contrast to credit cards, people can easily apply for a credit card even if they have bad credit.

There are number of options available in applying for a debit card, the most common of which is applying for a checking account which also offers a debit card. Some banks give the debit card on site or it can be mailed to the account holder’s address. Upon getting the debit card, it must first be activated through the ATM or through the bank’s online site. Prepaid debit cards are reloadable versions of the debit card can be applied for through PayPal or purchasing through Western Union. Transaction fees may be charged. A third option is having a portion of your salary deposited to a debit card. An initial fee is commonly charged upon the mailing of the card and can also carry a number of usage fees.

In comparison to credit cards, debit cards are known to have less security. When a debit card is stolen, it must be reported immediately and the card must not have been used in order to avoid charges. If reported within 48 hours of being stolen, a charge of up to $50 may be incurred. For notifications of beyond two days but less than 60 can incur larger fees. Beyond the 60 day limit, larger fees may be charged.

Any suspicious items on your financial statement must also be reported immediately. It is also advised to keep all receipts made with the use of a debit card. The account holder’s information can be easily obtained through looking at a receipt which may in turn be used to illegally purchase services or goods.

If the debit card comes with a PIN, it is best to memorize it. Avoid using birthdays as your PIN. Always keep track of your purchases and the amount remaining in your account. Some debit cards allow the account holder to use money reserved for other uses, such as clearing other debits.

Recently a debit card fraud took place and it was only caught because of careful checking of online transactions. Four purchases were made in a local area for Chinese food and pizza. They looked like normal purchases and perhaps would have gone unnoticed until much more damage was done. However, no one had visited these particular restaurants in months.

So how did this happen?

It took a visit to one of the restaurant to shed some light on the problem. The manager examined his receipts and was able to find all three transactions. This then triggered the manager’s memory of the customer who had telephoned in an order and read the debit card number as well as the expiration date. The thief then came in to pick up the order and all he did was sign the receipt. No one asked him for a card and no one cared that the signature was basically not readable.

Fortunately, because the thief had done this three times, the manager could describe the individual. He also had access to photographs of the person that were on his security camera. So there was no question that this was a fraudulent transaction.

Apparently someone who worked at a fast food restaurant had written down the card number and then used it. It was amazingly uncomplicated.

To protect yourself from this kind of debit card fraud, you need to make sure that when you are out and you hand someone your debit card that you can see what they do with it. It should not go out of your sight because writing those numbers down doesn’t take much effort. It just takes a minute. Make it a habit to either pay cash at the drive through fast food restaurants or make sure that you can see your card at all times.

In this fraud case, the debit card owner was checking their banking activity daily so the purchases were caught early enough not to do significant damage, but the consequences were that the card had to be cancelled and reissued with a different number. That can be a major inconvenience. Then there had to be a report filed with the bank that required disputing the charges and signing paperwork to that effect. The bank handled the rest of the dispute and reimbursed the money to the card owner.

So how common is this?

A bank teller recently said that there were at least two to three people a day that come in to dispute purchases that were not made by them. These purchases mostly involved unexplained Internet purchases and not debit card fraud. Debit card fraud is not as common, but it still happens and that should alarm anyone who uses debit cards on a regular basis. To protect yourself from this happening to you, take care when using your card and don’t let it out of your sight for any reason.

Use a debit wallet register

Tracking your expenses with a debit wallet register will help you quickly identify any unauthorized charges to your bank account. Protect yourself by keeping good records.