A debit card looks like a credit card but works like an electronic check. Because the payment is deducted directly from a checking or savings account. If you use a debit card at a retail store, you or the cashier can run your card through a scanner that enables your financial institution to verify electronically that the funds are available and approve the transaction.
Most debit cards also can be used to withdraw cash at ATMs automated teller machines. For many people, it is more convenient to carry a small, plastic card instead of a bulky checkbook or a large amount of cash. Using a debit card is also easier and faster than writing a check. It's a good way to pay for purchases without having to pay interest, as you would if using a credit card with an outstanding balance. You can even use your debit card to get cash when you make purchases at a store.
There may be fees for using your debit card. Examples: Some banks charge a fee if you enter a PIN Personal Identification Number to conduct a transaction instead of signing your name. You may trigger a fee if you overdraw your account using your debit card, just as you would if you "bounced" a check. Or, there could be a charge if you use your debit card as an ATM card at a machine that is not operated by your financial institution.
As with other bank products, your financial institution must provide disclosures explaining the possible fees associated with a debit card. Be sure to read the disclosures to avoid an unexpected fee.
As with similar financial products, rewards-linked debit cards are designed to encourage people to use a certain bank and its services.
Before opening a new account or changing banks just to get a different perk, study the fine print. Start by reading the disclosures that explain the account terms and fees to understand the potential benefits as well as the costs. First, because the payments are electronic, they are deducted from accounts more quickly than when using a paper check.
Often, a debit card purchase is posted within 24 hours instead of days, as may be the case with a paper check. That means there would be little time to make a deposit to cover a purchase, if necessary. In addition, even though a transaction was approved, you may overdraw your account because the bank won't know what other withdrawals you have made that day until it settles all transactions later that day.
Yes, in certain circumstances, merchants can take these steps as protection against fraud, errors or other losses. One common situation involves a hotel putting a hold on a certain amount when you use a debit card or credit card to reserve a room. Another example is when you use your debit card at the gas pump. It depends. But soon when prepaid debit card companies offer a line of "overdraft protection" it will work just like a credit card: Go over your limit and the bank will cover you, then send you a bill and start charging a fee and interest.
The biggest prepaid debit card players say they've never charged overdraft fees and have no plans to start. In fact, the new rule was largely designed to rein in prepaid debit cards sold by payday lenders that could deepen a vulnerable consumer's debt cycle. These lenders may link a cash loan to the customer's prepaid debit card as protection against a missed loan payment. However, if the card can't cover that payment, it would trigger an overdraft and cause the effective interest rate to balloon from a percent to a percent APR.
Advocates say at least the new rules will make the fees clearer, and therefore less profitable. So it's more likely providers will drop overdraft on prepaid as a result rather than add it. The only prepaid company of any significant size that offers overdraft protection is NetSpend. Once the rules go into effect in October , prepaid overdraft protection will look more like a credit card compared to overdrafts in checking accounts. For example, banks can offer overdraft from the opening of a checking account, while prepaid debit card companies have to wait at least 30 days.
Customers will also have to formally apply for the feature instead of it being a default feature found on many checking accounts.
Most importantly, overdraft protection with prepaid debit cards will operate more like a separate line of credit, under the CFPB's finalized rules. A customer who overdrafts their account will receive a statement with monthly payments, and the overdraft feature will be considered separate from the main account.
When you overdraw the account, the bank will dip into a separate line of credit.
0コメント