Balancing Your Account

• Even if you do not write any checks, you still need to balance your bank account regularly when you use a debit card to make purchases. When you balance your bank account, you subtract the amount you spent or withdrew from the previous balance. Conversely, when you deposit money, you add the funds to your previous balance. For example, if you initially have a balance of $100 and you spent $25, you will have $75 left in your account ($100 - $25 = $75). The importance of balancing your account is to prevent you from spending more funds than you have in the bank, which banks call an "overdraft." If you do overdraft your account, your bank may charge you a fee or the store may decline your card due to insufficient funds.
  
  

Safety

• It is not difficult for thieves to assume your identity and use your debit card to make purchases. To help prevent this, memorize your personal identification number (PIN), never write it down and do not share this number or the card's security code with family members and friends. When making debit card purchases, shield the keypad when entering your PIN number so others cannot see what numbers you push. Never give your debit card information over the phone to those who call you and say you owe money or are seeking donations for a charity. You always should call a company directly to make a telephone payment. When using your credit card to shop online, make sure your computer has updated spyware and virus software and active firewalls. Review your bank statements online or as soon as they arrive in the mail to make sure all the transactions listed are ones you made.
  
  

Federal Protections

• The Federal Deposit Insurance Corporation (FDIC) created the Electronic Fund Transfer Act (EFTA), which offers protection if you lose your debit card, someone steals it or the bank makes an error in your account. While EFTA states that you may have to pay up to $50 towards an unauthorized transaction instead of the full amount if you report a loss within 48 hours, many banks do not charge customers at all for any unauthorized purchases reported in a timely manner. If someone made unauthorized purchases with your debit card, your bank has 10 days to investigate your claim and give you a report of its findings. If the bank needs more time to conduct the investigation, it may issue you a full or partial refund. In addition to the 10 days, banks may have an additional 45 days to complete an investigation.
  
  

Debit Card Mistakes to Avoid

• Before seeking the assistance of a bank teller in a branch for a simple transaction, like a deposit, read your banking contract. Some banks charge customers for using a bank teller instead of an automated teller machine (ATM). When you travel, let your bank know. When a bank sees debit card transactions in states other than your own, it may think your card is stolen and will freeze your account. Using your debit card to make a credit transaction does not mean you can spend money you do not have on your account. A credit transaction is simply a different way to use your debit card to make a payment in locations that do not process payments using a PIN, such as a formal restaurant.