Most people today have debit cards. They’re normally issued for free when you get a checking account, and they provide one of the most convenient ways to pay for your purchases that you can have. Along with the simplicity of credit cards, they also allow you to avoid the high interest rates, annual fees, and late payment penalties that have been drowning consumers over the last couple of years. But the truth is that most people take that little piece of plastic for granted. Whether you’re getting your very first debit card or have been using them for years, a closer look is worthwhile.
First of all, the fronts of debit cards normally have your name, a series of numbers, and the logo of a major credit card company featured prominently on them. The logo tells you where you’ll be able to use the card – if an organization accepts that brand of credit, they’ll accept your debit card as well. The number is normally used for ordering items online or paying for purchases over the telephone, and you’ll often be asked for the expiration date as well as a small three digit security number that is located on the reverse of the card when you make online purchases.
Along with that three digit security number, the back of debit cards also have a short explanation of the terms associated with the card and may have website or telephone contact information if you have questions about your card or account. There’s also a box that you need to sign in order to validate your debit card, although many people overlook its presence entirely. There is also a magnetic strip along the top of the card which will be coded to your bank account and is unique to your debit card. This is the real ‘brains’ of the debit card.
When you swipe that magnetic strip through a PIN terminal, it will send the info needed to the debit card processing center. The system will check your funds and approve your purchase if you have adequate money to buy the items. Those funds are deducted from your account and sent to the merchant account of the business in question. Your purchases show up quickly and you’ll be able to use online banking measures to check your account balance and manage your financial information. Debit cards are common, but they’re still incredible tools that are worth learning more about.