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Debit Cards Also known as Check Cards!

  1. What are Debit or Check Cards
  2. How are they used
  3. Automatic Teller Machine (ATM) Hints
  4. Stored-value cards
  5. Preventing Card Fraud
  6. Preventing Financial Loss
  7. Protect Your Rights

What are Debit or Check Cards

These cards look and feel just like credit cards. Using an Automated Teller Machine (ATM) or debit card and a personal identification number (PIN) you can withdraw cash, make deposits, or transfer funds between accounts and pay for retail purchases.

Although debit and check cards look and feel like credit cards they are not the same . . . money for a purchase is transferred immediately from your bank account to the store's account.

Up How are they used

Purchases made with a debit card are handled in one of two ways:

  1. You enter your personal identification number; (*PIN)or

  2. You sign for the purchase.

*NOTE: Always get a debit card that must be used with a PIN to make it harder for thieves to use your lost or stolen cards or account numbers. Keep your PIN a secret. Don't write your PIN on the card or on a slip of paper kept with your card.

Up Automatic Teller Machine (ATM) Hints

Some ATMs charge a fee if you are not a member of their network or are making a transaction at a remote location.

ATMs must disclose the fee on the terminal screen or on a sign next to the screen.

Always take your ATM receipt after completing a transaction.

Reconcile ATM receipts with bank statements promptly.

When you use a debit card for a point-of-sale purchase, these purchases will be shown on your periodic statement from your bank account. If there is an error on your account, contact the issuer of the card immediately because federal law does not give you the right to stop payment when you use an electronic funds transfer. You must resolve the problem with the seller.

Up Stored-value cards

These cards contain cash value stored electronically on the card itself. Stored-value cards and the transactions you make using them may not be covered by the Electronic Funds Transfer Act, which means you may not be covered for loss or misuse of the card.

Up Preventing Card Fraud

  • Sign cards when they arrive, so no one can forge your signature on the cards and use them.

  • Keep a record of your card numbers and expiration dates and the phone number of the card issuer in a safe place.

  • If your card is stolen or missing, notify the card company immediately.

  • Don't give your credit card number over the phone to unfamiliar companies or to people who say they need it to "verify" your identity in order to give you a prize.

  • Destroy carbons and incorrect charge slips.

  • Do not sign a blank charge slip . . .draw a line through blank spaces on charge slips.

  • Keep copies of all sales slips.

  • Open credit card bills promptly and compare the sales slips with the charges on your bill.

  • Report billing errors and unauthorized charges to your credit card company right away.

Up Preventing Financial Loss

Report a lost or stolen ATM or debit/check card to the issuer immediately.

If you report an ATM card missing before it's used without your permission, you are not responsible for any unauthorized withdrawals.

Federal regulations limit your liability to $50 if you report the loss within two business days after you realize your card is missing, and to $500 if you report the loss between 2 and 60 days.

Under Federal law you could lose all the money in your bank account and the unused portion of your line of credit established for overdrafts if you fail to report an unauthorized transfer or withdrawal within 60 days after your bank statement is mailed to you.

Self-imposed industry rules limit your liability to zero if you report the loss within two business days, and to $50 if you report it more than two business days after realizing your card is missing.

Up Protect Your Rights

Write to the creditor or card issuer within 60 days after the first bill containing the disputed charge is mailed to you. (Even if more than 60 days have passed since you were billed for the item, you still might be able to dispute the charge if you only recently found out about the problem.) Sample Letter with Instructions

  • Send your letter to the address provided on the bill; do not send the letter with your payment.

  • Be specific. In your letter, give your name and account number, the date and amount of the charge disputed, and a complete explanation of why you are disputing the charge.

  • To be sure your letter is received, and so you will have a record, you might wish to send it by certified mail, with a return receipt requested using these Record Keeping and Mailing Instructions.

If you follow these requirements, the creditor or card issuer must acknowledge your letter in writing within 30 days after it is received and conduct an investigation within 90 days.

While the bill is being disputed and investigated:

  • You do not need to pay the amount in dispute.

  • The creditor or card issuer may not take action to collect the disputed amount, including reporting the amount as delinquent, and may not close or restrict your account.

  • If there was an error or you do not owe the amount, the creditor or card issuer must credit your account and remove any finance charges or late fees relating to the amount not owed.

  • For any amount still owed, you have the right to an explanation and copies of documents proving you owe the money.

  • If the bill is correct, you must be told in writing what you owe and why. You will owe the amount disputed plus any finance charges. You may ask for copies of relevant documents.

If you've fallen behind on your bills, especially credit cards, don't panic. You may have several good options available to you. Your success starts by assessing your current situation and finding a trusted service provider that is licensed in your state.
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