What is it?
We use our debit cards regularly for our everyday transactions like getting our morning coffee or for shopping online. It's a pretty convenient way to carry around money without the risk of carrying physical cash. There are some important characteristics to remember about debit cards though. They not only serve as a way for you to access your money but also as an ID for your bank. Each person that has an account with their bank will be given a debit card and a pin code. For some in-store transactions, you will need to enter your pin code each time to make a purchase.
Limits of a Debit Card
Did you also know that your debit card has daily limits on how much you can spend? You're actually limited in 3 categories, to a maximum of about $5,000 per day. You may change these limits to fit your spending needs but remember there is maximum to how much you can use regularly. If you try to exceed your limit, your card will be declined. If you need access to more, visit your bank for assistance. You are restricted to the following uses:
- ATM cash withdrawal
- Online transactions
- In-store purchases
Features of a Debit Card
There is also the option to turn the tap feature on or off. The tap feature provides convenience by allowing you to tap your debit card at available stores without entering your pin code each time. It's important to remember that the maximum dollar amount you can tap for is $100. Any purchases over $100 will require a pin code. As of recent events, some institutions have increased the limit to $250.
But what happens if you lose your card or it gets stolen? Don't worry, your money in your account will be covered for any fraudulent purchases as long as it wasn't made with your pin code. If someone stole your card and knew your pin code, your money would NOT be covered by the bank. It's important to keep your pin to yourself. I know that doesn't happen between family, spouses and close friends but ideally, no one but you should know your pin code for unforeseen circumstances. In the event you lose your card, you should go to your nearest branch to get it replaced. Some clients believe it takes a long time but I promise it shouldn't take more than 5 minutes for them to give you a new card. Don't delay and just get it over with!
Additionally, you can use your debit card to access your online account using the string of numbers on the card. You had the option to activate it when you first opened your account but if you didn't and want to use online banking, just talk to your bank. Another great feature of convenience to help you keep track of your account.
Some debit cards have an expiry date on them. I've had some questions about what to do when your card expires. Well, you don't have to do anything. Just make sure you keep your address on file with the bank up-to-date and they'll automatically send you a new debit card in the mail, usually about a month before your previous card expires. Just follow the instructions on the paper mail and your new debit card will be good to go.
These are the most common questions I get about debit cards. I'll see you guys on my next post!
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