Seven things to know before getting a debit card

Here are seven things to know before getting a debit card:

  1. Understand the difference between a debit card and a credit card: A debit card is linked to your checking account and withdraws funds directly from your account when you make a purchase. A credit card, on the other hand, allows you to borrow money from the card issuer and pay it back later with interest.

  2. Check your account balance before making a purchase: Since a debit card withdraws funds directly from your account, it's essential to check your balance before making a purchase to avoid overdraft fees. You can check your balance online, through your bank's mobile app, or by visiting a branch.

  3. Set up overdraft protection: Overdraft protection is a service that transfers funds from your savings account or another linked account to your checking account if you don't have enough money to cover a purchase. This can help you avoid overdraft fees.

  4. Understand the daily spending limit: Most debit cards have a daily spending limit, which is the maximum amount you can spend in a day. This limit may vary depending on your bank and account type. You can check your daily spending limit by contacting your bank or reviewing your account agreement.

  5. Be aware of foreign transaction fees: If you plan to use your debit card abroad, be aware that some banks charge foreign transaction fees, which can range from 1% to 3% of the transaction amount. You may want to consider a debit card with no foreign transaction fees or a credit card with no foreign transaction fees.

  6. Check for ATM fees: When using an ATM, you may be charged a fee by the ATM operator, as well as your bank. Some banks offer fee-free ATM networks, so it's essential to check your bank's policies before traveling or using an ATM.

  7. Monitor your account activity: Keep an eye on your account activity regularly to ensure that all transactions are legitimate and to detect any suspicious activity. You can set up account alerts or review your account statements regularly to stay on top of your finances.

By understanding these seven things, you can make informed decisions about using a debit card and avoid potential issues.