What are the disadvantages of having a debit card?

Question

I'm a junior in college and live on my own.I have never had a checking account or debit card. I mainly always use cash, and I refuse to get a credit card. Recently, my mother suggested I get a checking account/debit card so I won't have loose money lying around my apartment (I tend to have hundreds of dollars lying around for rent and bills). So basically, what are the advantages and disadvantages of having a debit card? Does it cost money to use it certain places? I heard it did at Wal-mart.

Answer 1

Having a debit card does cost more in certain places. But it beats having loose money lying around or a credit card. You are smart not to get a credit card. People go into dept fast that way. My advice would be to defiantly get a checking account or debit card. : )

Answer 2

Good for you don't get a credit card. I have a debit card though a credit union and there is no charge for using. If you do get one and it is a Visa Debt Card (has a visa logo on it) Every time you use it tell the person at the store to run it like a credit card not a debt. If you use it like a credit card it still comes out of your checking account but you have 0 liability coverage though Visa because it is handled as a Visa transaction. That way if someone does over charge you or steals your card and uses it you will not owe a dime. If you use it like a debt card and put your pin number in you are only covered by your banks liability policy and not the Visa policy. The only time I am charged to use it is if I withdraw money from ATM that is not with my bank. Any other time it is free to use.

Answer 3

there should never be a charge to use a debit card. i use mine at walmart all the time and there is no fee. the perks are that you can get cash back on point of sale transactions, or run it through as credit (which takes 2 business days to post). your point-of-sale amount and the amount you can withdraw from an ATM are roughly the same. your credit amount is significantly higher. with mastercard, you start out with $300 POS/ATM and $1000 mastermoney/credit. it's not a credit card, just acts like one, but the money still comes out of your checking account.
when you apply for a checking account, you need to have with you two forms of ID...a driver's license or something else with your picture on it, and a secondary form like school ID, car registration, voter registration, employee ID, government permits, etc. they will check to make sure you are not in ChexSystems (which you shouldn't be, since you've never had a checking account before). look for an account type with no minimum balance, no monthly fees, a free debit card, and no limits on check-writing.
you can use your debit card to pay your bills no problem. you can also order stuff over the internet or phone with it.
the disadvantage is, many people forget to record their debit transactions in their checking acct. register, so they forget that they've already spent the money. as long as you keep good records, you'll be fine.

Answer 4

One of the best things right now is the debit card from banks with the Visa or MasterCard LOGO. Most debit cards are being replaced by this. I rarely carry cash now a days because all my important transactions are done with this card. I pay my Mortgage, Electric, gas, water, cable....everything with it. I get gas at the pumps with it as well. The best thing is that it is not a credit card so I can't go over what I have in the bank and I am not charged any fees. There is a $2.00 per transaction to withdraw money after the 4th time in one month.

Answer 5

Get a savings account and withdrawl cash as you need it.

Debit cards, as well as credit cards, will draw you into debt FAST. With a debit card, you have to keep each and every receipt so you can write it into your check register which is sometimes more work than what it's worth. If you forget, you could easily bounce a check due to outstanding checks that haven't cleared due to spending too much with the debit card as all of the money comes out of your checking account. A lot of places, too, charge if you use a PIN# to pay for something rather than using it like a credit card. If you sign for a purchase, rather than using a PIN#, your financial institutuion will not charge you.

Answer 6

To correct some people here.

In the U.S.

Make sure you get one with a MasterCard or Visa symbol.

Most banks or merchants do not charge for using a debit card by either signing for it or entering a pin.

Some merchants and banks do charge for using the debit card when entering your pin.

If you shop around. You can find a bank with a higher daily pos limit with a debit card than just $300.00

Wal-mart does not charge for this.

Answer 7

I have never heard of a debit card costing more money to use, when you use it always say credit not debit and then you won't get any charges, they are great to have when ordering things and paying for hotels and stuff like but remember to write it down eveytime you use it or it could be costly when you dont' I enjoy having mine!

Answer 8

For debit card...you need to ave money in your account to use it. For credit, you can use money you dont have and maybe get credit card debts.

I never had a credit card,,,I just have a debit card and I am a senior...It sucks sometimes when you need money but dont have it in your account cus the atm wont give you money you dont have....

I think with credit cards...you can get money as long as you pay it back by the end of the month

Answer 9

It does cost money to use it certain places, in addition to the fee your bank charges you per use. Another disadvantage is that you are more likely to spend more. When using a debit card, the money you are spending is only a number, when using cash, you physically hand over the money....and you don't do that as freely as you would reduce a number. I read that somewhere, and I find it to be incredibly true.

Answer 10

I doesn't cost anything at my Wal-mart. I love mine! The only thing is, make a copy of the back and put it in a safe place, so if it gets stolen you can report it right away. In that aspect it is just like a credit card. You can also use it to make online payments!