Debit Cards

There is a great article in todays Parade magazine on Debit Cards. Here is the highlights.

Here are 4 debit card dangers to watch out for.

1. Overdraft charges:
If you run your card and there isn't enough money in the bank you can be hit with overdraft fees of up to $39 each.
Solution: Maintain at least $50 in your checking account as a cushion. Ask your bank to set up your account so your card is declined instead of allowing the charge. Ask your bank for email or text alerts to notify you when the balance is low.

2. Out of order transactions:
Instead of processing the transactions in order many banks are processing charges from the biggest to the smallest. This can lead to multiple overdraft fees.
Solution: Only use a bank that processes transactions chronologically.

3. International fees.
You can get charged 2-3% per transaction.
Solution: Some banks are willing to waive this fee.

4. Limited protection:
US law protects credit card purchases, but not debit card purchases.
Solution: Whenever buying online, always use a credit card.