Debit cards have been around since 1978. The First National Bank of Seattle was the first bank to issue a debit card. Eventually, more people began to use them and ATM machines began popping up all over the country.
Using an ATM machine will generally cost you, and these fees are often hefty. Using ATM machines with your debit card that aren’t from your bank network won’t be free like it will at your bank. The machine will charge your card additional money for using its functions.
Debit cards can actually be used as credit! When making a payment, if credit is selected from a debit card insert, you simply need to sign instead of adding your PIN. The money will be removed from your account balance a few days later.
Unlike a credit card, debit cards when used as debit with an inserted PIN (4-digit Personal Identification Number), will result in an instant removal of the payment money from your account. Because the transaction is instant, debit card payments are do not need processing and act like cash payments.
Transactions with your debit card aren’t always unlimited. Some banks limit the number of transactions available on the card, and will charge extra money for any transactions made after the limit was maxed.
There is a security risk with using a debit card. If your card is stolen and your PIN isn’t private, the robber can use the card to make purchases as he or she pleases. As a measure to manage the card’s balance in that situation, you can check your balance and purchases online and even cancel or lock the card if necessary.
When you write and sign a check, the check is counted as a debit transaction. When the recipient cashes in the check, the money is immediately removed from your account. This will affect your debit card balance.
