Plus Debit Card, The Components

By: EconomyWatch Content Team   Date: 6 February 2010

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EconomyWatch Content Team

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As competition between credit card companies and financial institutions becomes more intense due to the current economy, we now see more and more cards being offered as a Plus debit card.  This typically means that the debit card provides some type of rewards or a bonus of some kind, meaning the cardholder is getting the benefits of a standard debit card, PLUS other benefits.

When it comes to being a cardholder of a Plus debit card regardless of the issuing company, it is essential that the individual understand certain things that could ultimately save a tremendous amount of money and time.  First, a Plus debit card is simply an ATM card that has backing of MasterCard or Visa.  Because of this, the card can do more than an ATM card to include being used for making in-person and online purchases or payments, transferring funds, sending money, and again, the specific rewards program associated with the card of choice.

Although the Plus debit card is far more convenient and it offers more benefits than an ATM card does, it also increases potential risk of fraud.  The reason is that most debit cards are processed like a credit card, which means without a Personal Identification Number or PIN.  In addition, the Plus debit card can be used online without need for a signature.  Now, some issuing companies are now offering debit cards that have a PIN, which reduces risk but even then, there is more liability along with more benefits.

For the person interested in getting a Plus debit card, it is important for him or her to know the dollar amount responsible for if unauthorized purchases were made.  Typically, credit card companies, banks, and credit unions will only require the cardholder to pay $50 but sometimes, there is not set dollar amount.  In this case, if someone stole a Plus debit card without limitations, and that person fraudulently used $2,000, the cardholder would be out $2,000!

Another important thing to look for associated with a Plus debit card is whether it is limited to domestic purchases only or if it could be used for international travel.  For the person who travels frequently on business or pleasure, this type of information would be vital.  In addition, the cardholder should understand the charges associated with using the Plus debit card while in a foreign country in that rates would vary dramatically from one issuing company to another.

People need to remember that the Plus debit card makes the issuing company a serious amount of money.  In this case, when the cardholder makes a purchase with the card with a merchant that requires the receipt to be signed, the merchant is paying the issuing company a fee.  In addition, when the debit card is used to withdraw funds as if it were an ATM card, chances are the bank is charging the cardholder a fee.  Because there are so many variances associated with a Plus debit card, learning as much as possible prior to choosing would be to the individual’s best interest.
 


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