Even though debit cards (or check cards) have become widely used, many people are unfamiliar with them. They look like credit cards or ATM cards, but function like cash or personal checks. When you use a debit card for a transaction, the money is quickly taken from the checking or savings account to which the debit card is linked.

Debit cards can function in two ways - like an ATM card for immediate withdrawals of cash from an account and like a check when buying something. The money used to pay for the transaction is usually deducted from your account within a day or two, just like a check.

Advantages of a Debit Card

• Easy to obtain. Since you are not applying for credit, once you open an account, most institutions will issue a card.
• Convenience. Unlike a check, when using a debit card for a purchase, personal identification is usually not needed.
• Safety. You don't have to carry cash or a checkbook.
• Readily accepted. When out of town or the country, debit cards are usually more widely accepted than an out of town check.

Some Guidelines