Debt Consolidation: How it has Led to Debit Card Use

After Debt Consolidation – Using Debit Cards

If you have already had to resort to debt consolidation, then you are aware that debit cards are now the preferred piece of plastic. Debit cards are issued for online use and banks offer deferred debit cards too. The deferred debit cards typically carry a Visa or MasterCard logo and therefore can be used almost anywhere. The other kind of debit card, which can be used over the Internet, usually has a PIN number attached to it. With the deferred cards, you must sign a receipt which authorizes the purchase. In turn, the amount for the purchase is taken out of your account a couple days later. Some lenders combine both features on their cards, so you have more latitude when it comes to buying or using the card. However, this kind of flexibility also makes it easier for thieves to use the cards too.

Playing it Safe

Therefore, it’s best to use debit cards that come with a PIN number versus those cards that only need a signature. If you have a debit card that allows you to sign for purchases then, make sure that you always carry your signed receipts with you and get into the habit of shredding them. The personal information on those receipts can leave you vulnerable to theft. Also, don’t pen in your PIN on your debit card or give the information to anyone else. In addition, make sure that the PIN is not an obvious choice, such as, say, your birth date.

Report any Suspicious Transactions Immediately

Here is another important point to remember too – if you find a transaction on your debit statement which you didn’t make, report the transaction immediately. Up to $500 in illegal transactions can be covered if you notify your financial institution within 60 days of noticing the entry. After that time, you will responsible for any expenditures made by someone unauthorized to use your card.

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