Your debit card is often handy for you, and maybe others. Think about it as a direct line to your checking account. And how many times does the store clerk ask to see your identification when you use your card? In fact, do they know if it is your card at all that you are using? With the right information, someone can use your debit card to withdraw money from you bank account. You may not know you've been a victim until checks begin to bounce. By that time, its already a big mess. Practically everyone has a debit card. Everyplace that accepts credit cards accepts debit cards today. You can use them to shop online, in stores or over the telephone. They take money directly from your checking account or savings account. This eliminates the temptation to charge up a bill you can't pay. It's the convenience of a credit card without the debt. But debit cards can leave you open to theft. Credit cards carry a $50 liability for fraudulent charges. And often, lenders will waive that fee. But debit cards require you notify the bank within two business days after discovering the theft to receive that $50 liability. If you wait more than two business days, your loss could be $500. Wait over 60 days, you may not see any of the money back. Debit card issuers recognize the problem. Visa and MasterCard have zero-liability policies for their debit cards. The policies apply to signature cards that have the Visa or MasterCard logo. Many advisors recommend you not use a debit card at all. Others recommend sticking with a PIN card, which requires a PIN number for usage. There are some ways you can protect yourself. Don't every email your account numbers or passwords to anyone. Not your bank, not a store -- no one. Call the institution requesting the information by telephone. Don't use your ATM card in a suspicious ATM. Hide your PIN number by covering the pad with one hand as you put in the code. If an ATM eats your card, don't leave the ATM. Use your cell phone to call your bank immediately. Don't write down your PIN number. If you do, don't put it in your wallet. So many people write the pin on the back of their card. What are they thinking? Monitor your checking account regularly. This is the first way to recognize any missing funds from your account. Make sure you have receipts to match every transaction. Remember, your debit card is a passport to your money. Don't let a thief take a free trip. Protect your card at all costs. Make sure you don't leave it anywhere. Don't give out the number unless you are absolutely sure of who you are giving it to. And if you are wary about using it online, get a credit card just for those purchases. |
