Print Article for : Debit Cards Credit Cards

Your Online Guide » Information on Cars » Used Car

[D92]Debit Cards Credit Cards

by Ken Sharp, Ken

60% of people use debit cards more than credit cards. Between 2002 and 2005 the percentage of people using debit cards grew from 47% to 60%. Now debit cards are the same percentage of purchasing products with cash at stores, 33%. People are using debit cards to purchase many items online too. People are becoming more credit aware as they enter the new millenium. People would rather pay with a debit card because they know that the debit card can take money right out of their bank account to pay for the item. People are more concerned about interest rates than they used to be. Debit cards offer a low cost or no cost to use them by most banking institutions, while credit cards on the other hand can put the buyer into quite a pile of extra bills.

Credit cards have more protection for the cardholder than debit cards do. Credit card companies will not hold the cardholder liable from fraudualnt sellers or stolen credit cards. Debit cards, on the other hand, have very little protection. If the cardholder waits more than 2 days to report any fraudulant activity or that their card was stolen, they could miss out on any type of protection their financial institution could give them. Also, if they wait more than 60 days before reporting, the theif who stole their card or the fraudulant seller could take everything out of their bank account.

Both credit and debit cards are faster and easier to make purchases, but they also have their downside opposed to cash.

It's very easy to acquire a debit card. Simply talk to your banking institution and fill out an application. You will not need to worry about any type of credit check and there are no extra fees involved with getting or owning a debit card. You will get the card in the mail within about one week from filling out the application. There is also a PIN number involved with setting up and activating the debit card. You will get your PIN number through the mail also and when it arrives, you will need to call the telephone number associated with the PIN number. After you answer some questions, you will have to type in the PIN number you recieved in the mail to activate your new debit card.

A debit card operates like cash or a check. When you make a purchase with a debit card, the money is immediately withdrawn from your bank account. With a debit card, you are only allowed to spend the money that is in your bank account. You do not incur interest, but you may have to pay your bank's transaction fees or pay interest if you have to use the overdraft protection.

A credit card allows you to purchase now and pay later. You have a certain amount of time from when you make the purchase to when you receive the bill. With a credit card, you are allowed to spend up to the limit pre-determined by the bank. Interest rates and fees vary, but the majority of card issuers do not charge interest when you pay the full balance each month.

What type of protection do you have for lost or stolen cards?

Under the Electronic Fund Transfer Act, if you report your ATM debit card lost or stolen before it has been used, you are not liable for any unauthorized purchases or withdrawals. If you realize that your debit card is missing and report it to the bank within two business days, you will be held responsible for up to $50 of any unauthorized withdrawals. Your liability increases the longer you wait. If you report the card missing after the two business days, you are liable for up to $500. The liability you face is unlimited if you do not report unauthorized withdrawals within 60 days after your bank statement has been mailed to you.

Credit card loss is slightly different than an ATM card loss. Under the Fair Credit Billing Act, if you report that your credit card is missing before the card has been used, you are not responsible for any unauthorized withdrawals. If you report the card missing after an unauthorized charge has been made, you are only responsible for up to $50 of the unauthorized amount. After you have reported the credit card loss, be sure to review your billing statement. If you find more unauthorized charges, write a letter to the card issuer referencing each charge. Be sure to include the date the card was missing and the date you reported it to them. When you mail the letter, do not mail it with a payment or send it to the billing address.

Article Source : Pg. 3

About Author

Both Ken Sharp & Deborah Mcnaughton are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Ken Sharp has sinced written about articles on various topics from Entertainment Guide, Credit Cards Benefits and Credit Cards. . Ken Sharp's top article generates over 4400 views. to your Favourites.

Deborah Mcnaughton has sinced written about articles on various topics from Debts Loans, Mortgage and Anti Oxidant. Deborah McNaughton is an author and credit expert. She is founder of Financial Victory Institute, which specializes in financial education. Deborah has programs to train individuals to become credit consultants and teach financial seminars. Visit. Deborah Mcnaughton's top article generates over 33100 views. to your Favourites.