New Debit Card : Choose The Best

By: EconomyWatch Content Team   Date: 26 January 2010

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When you are considering getting a new debit card there are several factors what should be taken into account. These things range from reconsidering what you intend to use the new card for and making sure that you understand the rules for reporting fraud on your account.

It is important to remember that debit cards are best used for small, everyday purchases. These are things like a tank of gas or doughnuts for your coworkers on a Friday morning. If you are getting a new debit card in order to make large purchases, like computers or furniture, then a credit card is probably going to be the better option.

For instances like these, the fraud rules will work more in your favor for the large purchases and having the ability to pay them off over the course of a few months will help your finances immensely.

Getting a new debit card is also much more convenient for you and the merchants that you buy things from. Checks are a pain to take the time to write out and you have to have your identification and driver’s license number always at the ready. Then you have to wait a long and inconsistent length of time waiting for the check to clear your account.

Having a debit card will ensure that all of those transactions will clear readily, usually within 24 hours. The largest delay you can expect can be on weekends when transactions will not reflect on your account until Monday. Also more and more merchants are no longer accepting checks, so having a debit card available can save a lot of hassle.

Another thing to keep in mind when you choose a debit card there are certain merchants that will place a hold on your account. This is to ensure that there are funds available to pay for your purchase until it clears your account. For example, a hotel will often place a hold on around $100 of your funds until your bill has been paid and then the correct amount will be debited. While this money is not being removed from your account, you won’t be able to use it until the hold is lifted. 

Some of the fraud laws with a new debit card don’t favor the consumer as much as credit cards. For example, if fraud occurs, the bank has 10 business days to make a final decision on your claim. Some banks will provide you a temporary credit for these items while they investigate, but a lot of them will not. While they determine if you authorized that transaction or not, the charge will stay on your account. This can be a hassle an s a reason to use debit cards for more run of the mill purchases.
 


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