Tips and Guides for Debit Card

Seven tips for responsible use of debit cards

• If your card is lost or stolen, report the loss immediately to your financial institution.

• If you suspect your card is being fraudulently used, report it immediately to your financial institution.

• Hold on to your receipts from your debit card transactions. A thief may get your name and debit card number from a receipt and order goods by mail or over the telephone. Your card does not have to be missing in order for it to be misused.

• If you have a PIN number, memorize it. Do not keep your PIN number with your card. Also, don't choose a PIN number that a smart thief could figure out, such as your phone number or birthday.

• Never give your PIN number to anyone. Keep your PIN private.

• Always know how much money you have available in your account. Don't forget that your debit card may allow you to access money that you have set aside to cover a check which has not cleared your bank yet.

• Keep your receipts in one place -- for easy retrieval and better oversight of your bank account.

Be aware!

While some issuers give customers separate cards for ATM and on-line transactions and another for off-line uses, others combine the two on one card. If your card handles both off-line and on-line debits and the store accepts both, you will choose the function when you use the card. If you choose "debit" on the merchant's terminal and "swipe" your card through, the transaction will be done on-line and you will be asked for your PIN. If you choose "credit" on the terminal and swipe your debit card through, the payment will be off-line and you will be asked to sign the sales slip.

What if my debit card is lost or stolen?

Just as your money may be stolen and your credit cards may be lost or fraudulently used, a debit card may be lost, stolen, or used without your knowledge. As a cardholder, you need to know the extent of your protection.

Government regulations require debit card issuers to set a maximum liability of $50 if the debit card is reported lost or stolen within two days of discovery. Liability increases to $500 if the lost or stolen debit card is reported within 60 days. Neglect to notify the bank of the theft within 60 days after a bank statement is sent, and you could lose everything in your checking and overdraft accounts.

Check with your financial institution about your liability. Many issuers offer consumers better protection than what is required in government regulations. One type of check card offers consumers "zero liability" in cases of fraud, theft, or other unauthorized card usage if reported by the cardholder within two business days after discovery. After the two-day period, the cardholder could be liable for a maximum of $50. Some other cards limit consumers' liability for fraudulent use of stolen debit cards to $50.

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