What are Debit Cards?
Welcome to the New World of Debit Cards
Not so long ago, a debit card was merely an ATM card that you could only use at an ATM machine to withdraw cash. Then some stores and gas stations started accepting debit cards as a form of payment and nowadays there are even debit cards with Visa and MasterCard logos on them that you can use anywhere credit cards are accepted. Welcome to the new world of debit cards.
What’s a Debit Card?
Debit cards, also known as check cards, look like credit cards but they operate just like cash or a personal check would. Debit cards are similar to credit cards, but when you use a credit card you pay the charge when the bill comes in. When you use a debit card, the entire purchase amount is immediately taken out of your checking or savings account.
Use It Wisely
While debit cards are indeed convenient to have and to use, you don’t want to get carried away with them. Make sure you track each debit card purchase you make and balance your checkbook often. Otherwise, you may find yourself in an overdraft situation and that’s the last thing you want.