We Know: How Debit/Check Cards Work Is there a difference between a debit card and a check card? Originally, a check card was used in the place of a check, and carried a MasterCard or Visa logo. Debit cards were distinguished from check cards because they required a PIN (Personal Identification Number) in order to access funds. Both of these functions are available now in the cards distributed by banks when an account is opened. How do debit/ check cards work? The debit/ check card allows the cost of goods or services to be deducted from buyer's account. The cards can also be used at automated teller machines for withdrawing cash from checking and savings accounts. You can use these cards in the same way you would use a credit card, if you have a MasterCard or Visa logo. You can also use your PIN number for a real time withdrawal directly from your account whenever available. You can also use these cards to withdraw or deposit money at the ATM. Should I use the debit or credit option with my debit/check card? Because of the availability of balances at a moment's notice, people rarely keep track of what they spent. If you are this type of person, it is wise to use the debit option whenever it is available, as the money is immediately debited from the account. When merchants are slow submitting receipts, money can be credited back into the account creating a false balance. This results in overdrafts, bounced checks, and a multitude of bank fees. Using the debit card immediately withdraws money from the account, so you do not need to guess how much money you have. Are there any negatives to using a debit/check card? When using this card instead of a credit card, the buyer will have less bargaining power with purchases. Because of this, when making large purchases, you should use a credit card instead, so you can refuse to pay for the purchase if you are later unsatisfied. Some issuers charge fees for making debit card purchases, so it is important to shop around when choosing a bank. There is always the possibility of card, or card information theft, so check your balances often. Only true credit cards, (not debit/check cards,) can be used to place deposits for items like car rentals and hotel rooms.
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