More infos on Debit Cards

Protection from identity theft in Debit cardsProtection from identity theft in Debit cards:

Many analysts tell people to choose PIN based debit card as there is a kind protection against the debit card theft. In case of signature based debit card anyone can grab your card and go for shopping but for PIN based debit card its not possible (as long as you can keep your PIN away from the thief).

There is some kind of protection in case the thief grabs your card and goes for huge shopping using your money. But all the protection is available only if you complain about the theft quickly.

Under EFTA or Electronic Fund Transfer Act, if you inform the bank about the theft within 2 business day, then your liability will be restricted to $50. But if you miss the 2 day time limit then your liability can be up to $500. In case of MasterCard and Visa cards, they provide "zero liability" if your card has been stolen. But this assurance is only given for the transactions within the company’s network. If the transactions had been done outside the network, then the liability will be according to the issuing company policy. The policy can be somewhat better or same as Electronic Fund Transfer Act.

Check out for the Hidden Fees:

Check out the hidden fees in the debit cards. Some companies take a monthly fee and some companies charge on debit transactions. Some debit card issuing companies also charge a fee if you use PIN based facility instead of signature based. So always be sure about the fees before using the card.

While buying an item using credit card, you have the option to withhold the payment if you are not happy with the item delivered to you. This right is also safe guarded by Federal Fair Credit Billing Act. But this act can’t be applicable on the purchases using debit card. So it is always advisable to use debit card for smaller purchases and credit card for the bigger purchases. While buying items online, it is always better to use credit cards instead of debit card as the consumer rights are better safe guarded by law for credit cards than the debit cards.