More than an ATM card
Different debit cards may have different functionalities. Some may be just an ATM card and can only be used for cash withdrawal. Others may also be used for point-of-sale purchases at certain merchants in your own country, such as grocery stores, retail stores, petrol stations and restaurants. Some debit cards may even be used internationally at both ATMs or merchant locations overseas. You can use your card at any merchant displaying your card's brand name or logo, or even on the Internet. They offer an alternative to carrying cash or sending checks.

Do you have a debit card?
You may not realize that you have a debit card. Some banks may be replacing their standard ATM cards with upgraded ATM cards with a debit feature. This means that you can use your debit card not only for cash withdrawals at ATM, but make purchases at any merchant that displays your card brand's name or logo.

Debit vs credit
It's the difference between 'debit' and 'credit'. Debit means 'subtract'. When you use a debit card, you are subtracting money from your own bank account. Debit cards allow you to spend only what is in your bank account. It is a quick transaction between the merchant and your personal bank account.

Credit is money made available to you by a bank or other financial institution, like a loan. The amount the issuer allows you to use is determined by your credit history, income, debts and ability to pay. You may use the credit with the understanding that you must repay the charges, plus interest, if you do not pay the amount in full each month. You will receive a monthly statement detailing your charges and payment requirements.

Read more: Credit Cards »

What you should know about debit cards:

Using a debit card saves you from carrying cash or writing checks. Using a debit card means you no longer have to stock up on travelers cheques or cash when you travel. The debit card is a quick, "pay now" product; the amount of your purchase is directly deducted from your bank account. Make sure you have the money available to cover the full transaction amount at the time of sale. As with credit cards, you may dispute unauthorized charges or other mistakes within the time period set by the bank which issues your card. You should contact the card issuer if a problem cannot be resolved with the merchant.

Using a debit card at point of sale

PIN
You need to key in your PIN at the time of sale. These PIN-based debit cards can only be used at merchants that are equipped with online card processing terminals attached with a special device for keying in your PIN.

Signature
You sign a receipt for the purchase, as you would with a credit card. Signature debit cards can be used at merchants both with online card processing terminals and those with offline terminals.

Some debit cards are designed to work with a PIN only, others can be used with either a PIN or a signature. Cards that can work with the signature method may offer more flexibility, especially when dealing with merchants who do not have the equipment needed to process PIN transactions. Check with your local financial institutions which types of debit cards are offered.

In either case, the funds are automatically deducted directly from your account.

For both types of debit cards, you will need a PIN for cash withdrawal at ATM. Your bank may assign one to you when your card is issued.

Before you use a debit card...

1.	Know if it is a credit or a debit card. Ask the card issuer about your options. Understand whether they are providing you with just a debit card only for local ATM cash withdrawal, or one which may also be used for making purchases at local merchants, or a debit card that can even be used internationally when you are traveling. Choose one that matches your lifestyle and habits best. Also, decide whether you want a debit card that works only with a personal identification number (PIN) or one that can be used with a signature. In different countries, they may give you different merchant coverage.
2.	Know if there are fees applied to using the card. Some financial institutions charge a monthly fee or a per-transaction fee, others do not. These fees are set by the card issuer and will be disclosed to consumers.
3.	Know about your liability for the unauthorized use, theft or loss of your debit card. Ask if the issuer has any special liability policies and how they work.
4.	Know how problems with non-delivery, defective merchandise or misrepresentation will be handled. This is especially important when you use a debit card to purchase goods or services for future delivery, rather than on a "cash and carry" basis. Ask the issuer about its policies for these types of disputes.

Seven tips for using debit cards responsibly

1.	If your card is lost or stolen, report the loss immediately to your financial institution.
2.	If you suspect your card is being fraudulently used, report this immediately to your financial institution.
3.	Take your receipts. Do not leave them for others to see. Your account number may be all someone needs to order merchandise through the mail or over the phone at your expense.
4.	If you have a PIN number, memorize it. Do not keep your PIN number with your card. Also, do not choose a PIN number that a thief could figure out, such as your phone number or birthday.
5.	Never give your PIN number to anyone. Keep your PIN private.
6.	Always know how much money you have available in your account. If your debit card is linked to your checking or current account, do not forget to consider money that you have set aside to cover a check that has not yet been cleared by your bank.
7.	If your debit card is linked to your checking or current account, deduct debits and any transaction fees from the balance in your check register immediately. Keep statements and receipts in one place in case you need them later.

If you lose your debit card
In the event that your debit card is lost or stolen, report it to your financial institution immediately. Check with your financial institution about the liability policies. You also need to know the extent of your protection. If a problem arises, remember that it is your money that is at stake.

Since the money spent using a debit card comes directly from your bank account, you need to be careful in order to prevent unauthorized use of your card or card number.

ASK FOR DETAILS OF THE CARD ISSUER'S LIABILITY POLICY.