What you should know about your first debit card

Setting up your first account with a debit card can lead to some tricky situations.

07:44 01 September 2013

If you are thinking of getting your first current account and are wondering about debit cards, there are a few things you should consider. It’s important to be properly prepared when you have your first debit card.

• Fees—different banking institutions may charge different types of fees related to the use of debit cards. You might receive charges per transaction, when obtaining cash from the ATM, or even if you decide not to use your debit card enough during the month. These are just a few of the types of fees that might be charged.

 

• PINs—in order to use a debit card, retailers and merchants require you to have a special number which should ideally prove that you have authorisation to use the card. Once you choose your PIN, make sure that you don’t share it with anyone to keep your information and finances more secure.

 

• Comparisons—remember to do comparisons when trying to figure out which bank to choose. Some banks may not charge as many fees related to debit card use, or may not fine you if you don’t use it very frequently. If you don’t investigate your options you may end up swallowing a lot more fees than you thought.

 

• Reconciling accounts—it can be a little more difficult to keep track of the balances in your accounts when you use a debit card or a mixture of your debit card and paper cheques. Make sure you have a booklet or some way to keep track of the purchases so you always know your balance.

 

• Automatic payments—if you use your debit card for any recurring automatic payments you’ll want to make sure that you set up a calendar reminder to update the information when you get your new debit card since the expiration date should be different.