Eight Secrets About Your Debit Card

Eight facts regarding your debit card that you might not be aware of are listed below:

1. You can use it to locate misplaced receipts.

According to Daniel Butler, vice president of retail operations for the National Retail Federation, your debit card might be able to aid if you can't find the receipt for that phone charger you purchased last month.

According to him, some issuers provide a service where "they'll investigate it and email it to you." It's an attractive feature.

Different institutions respond to the request in different ways. Some only demand a small fee. Some people choose to send the receipt rather than email it, which takes more time. For some, the record of the purchase with the amount, item, and date may not be the real receipt. But if you absolutely must have the receipt, at least there is this.

Instead, are you looking for extra cash?

A few organizations still provide incentive programs for people who use debit cards. Additionally, some banks and credit unions offer extra savings programs that round up purchases and deposit the difference in your account or deduct a predetermined sum, like $1, from your account each time you use the card.

2. You can be subject to a daily spending cap.

You undoubtedly memorize your daily ATM withdrawal limit. However, did you know that you probably also have a daily debit card spending cap?

Nessa Feddis, vice president and senior counsel for the American Bankers Association, states that "it's pretty typical." According to her, the actual cap "may depend on the customer, the balance, and the regular activity."

No matter how much money is in the account, if you have a limit, your institution will stop allowing debit purchases once you reach the magic figure.

Therefore, according to Sherry, it pays to learn what that limit is if you intend to use your debit card for large transactions.

And based on what you discover, you might need to either space out your purchases or come up with another plan.

You can also phone the institution and ask them to override the limit if you're making a one-time, sizable purchase, advises Feddis. She explains, "They want you to utilize the card." "If you have enough money, there probably won't be any issues."

3. Your card enjoys consistency.

If you break your usual routines, your debit card could not function.

That's because organizations frequently cancel cards if they observe unusual usage. Therefore, if you frequently shop in New York and suddenly decide to treat yourself to cappuccinos in Seattle, your issuer may decline the transaction.

There isn't a one-size-fits-all answer to this. According to Michelle Dosher, managing editor for consumer publishing for the Credit Union National Association, some institutions will place a "travel alert" on your account if you let them know you intend to use the card while traveling.

However, according to Feddis, not every institution may be able to use it. If you've been declined, it's frequently "easier to phone the bank or write them an email," according to her. And it's always a good idea to have a backup, just in case.

4. Transactions cannot be debited in a particular order.

In some ways, debit cards resemble currency. They can, however, be an entirely other animal in others.

According to Rebecca Borne, senior policy counsel for the Center for Responsible Lending, "people might expect that when they use their debit card, transactions will come out of their account in the same sequence (in which) they are using their card." A lot of banks rearrange the debit card transactions before they are released.

According to her, certain institutions' preferred method of processing larger purchases first results in maximum fees if a customer overdraws their account.

The sequence in which your bank conducts daily transactions is out of your control. But according to Borne, you can avoid expenses by choosing not to enroll in overdraft protection services that charge a fee.

The card expires when your balance reaches 0 if you choose not to participate. You can also quickly deactivate fee-based overdraft protection if you've previously signed up for it.

5. Theft and fraud protection could be present.

Some companies that supply debit cards provide zero-liability insurance against theft and fraud.

According to Linda Sherry, director of national priorities for Consumer Action, a national consumer education and advocacy organization with headquarters in San Francisco, you might not be aware that in order to receive those benefits, you may need to use the card with a signature rather than a PIN.

Credit card fraud liability is capped by federal law at $50 per cardholder, whereas debit card fraud liability is less protected.

How to keep oneself safe: Find out if your bank provides protection against theft and fraud. Be more precise. What conditions make it honorable? How must the card be used? What deadline do you have for filing the loss?

According to Ed Mierzwinski, consumer program director at U.S. Public Interest Research Groups, "most of these claims have restrictions and asterisks."

Some banks will temporarily reinstate disputed funds in your account while they investigate. Some people will hold off until their questions are finished.

We still like to advise consumers to utilize credit cards when placing phone or online orders since they offer the best charge-back protection, according to Sherry. "You're not out the money when something goes wrong with a credit card."

6. It might take money out of your savings.

Linking the checking account to a savings account is a common way to get low-cost overdraft protection at banks and credit unions.

The issue for customers is that because the two accounts are connected, Sherry claims that anyone with access to the debit card can empty them both. The benefit of less expensive overdraft protection comes at the expense of "having your savings and checking account wiped out, if somebody else acquires your card," she warns.

She advised keeping the majority of your savings in an unconnected third account if you wanted to employ this type of overdraft protection. Only connect your checking account to a savings account with a balance low enough to serve as an overdraft buffer.

7. The balance might not be as large as it seems.

Debit card use has one drawback: Transactions don't always appear right away. Thus, you have a "balance" and a "actual balance."

The money can frequently take up to a few days to leave your account with signature-based purchases (those that don't require your PIN to complete the transaction), according to Dosher.

The remedy: Receipts, a checkbook, a ledger, or even an inexpensive notebook can be used to keep track of your actual balance. For your iPhone or Android device, there is an app for that, thus the answer is yes.

Check out your bank's or credit union's internet banking options as well, advises Dosher.

Online, however, doesn't always imply "real time." Even with internet banking, there may be a wait with some institutions before certain transactions show up on your account records.

Using a debit card to make a return? Your money might not arrive right away.

Butler states that "normally, it's not longer than a week, and as little as a day." Because it differs, "you actually have to ask each merchant," he explains. And it changes according on the banks that you and the retailer are using.

So, utilizing cash or credit can be wiser if money is tight and you believe those new jeans will be too.

8. There may be another choice available.

Would you rather use your old ATM card instead of your debit card?

What you might not realize is that many banks and credit unions still offer that as a choice.

Call your bank or credit union to see if they offer ATM cards if all you want to do is use your card to withdraw money from one.