Green Dot Corporation

In spite of the growing number of consumers using debit cards many still don't know much about them. With a debit card also known as check card the amount you spend is limited by what you have in your bank account. Debit cards look like credit cards or ATM (automated teller machine) cards but operate like cash or a personal check. When you use a debit card your money is quickly deducted from your checking or savings account. ~~There are two types of debit transactions both often housed on the very same card that your bank sends you as a replacement for your old ATM card. The first are online transactions you perform at an ATM. Just put in a personal identification code (PIN) and funds are electronically transferred from your account as you designate. The second are offline transactions: present your card in a store and it is treated like a credit card sale. The money used to pay for the transaction is then deducted from your checking account usually within a day or two. ~~Business Consumer Alliance suggests before you use your debit card call your bank or issuing institution and ask what your liability limits are if your card is stolen or lost? Also ask about usage fees and if there is a cap on how much money you can debit per day? Per month? What are the limits? Find out if the card offers any purchase protections similar to other credit cards. If your card is lost or stolen and money is taken out of your account how soon will it be replenished by the bank?