Debit Card 101

If you have an active personal savings or checking account, you’re likely carrying around a debit card everywhere you go. Users already know how convenient it is to own one, as it allows payments directly from their accounts without using a checkbook.   

On top of that, a debit card grants you instant access to cash as long as you’re near an ATM. It also makes you feel safe if you have to transport a huge amount of money, but you don’t want to carry it around.

Unless you’ve been living under a rock, you probably know these already. However, a lot of debit card owners still have questions regarding its functions and security features. Listed below are some facts you need to know about debit cards.

Importance of the Chip

By now, you have probably received a new debit card with chip technology. And if you haven’t yet, make sure to contact your credit union to ask for one.

The chip technology has been adopted by almost every financial institution worldwide to fortify its security. The system makes every transaction unique by creating a one-time code every time you make a payment. As a result, your card can no longer be replicated even if someone’s able to get your data and special one-time code.

Skipping Online Purchases

If you want to purchase an item online, it isn’t advisable to use your debit card in Ashland, KY for your safety. While the chip technology offers added security, debit cards just don’t have the same fraud protection as credit cards.

Most credit cards come with zero fraud liability through the Fair Credit Billing Act (FCBA). Unfortunately, the same protections don’t apply to debit card transactions. The debit card owner’s level of liability depends on when the fraud was noticed and reported.

For instance, if you report the fraudulent activity within two business days after it’s been noticed, you are liable for up to $50 in losses. However, that liability can go up to $500 if you reported fraud within two to 60 days.

Uniqueness of PIN

This may seem like a no-brainer, but creating a unique personal identification number (PIN) is crucial if you use a debit card in Ashland, KY. While it’s understandable that people want to create a PIN that’s easy to remember, simple combinations such as 0000 and 1234 completely defeat the purpose of having a security code.

Codes that are based on your birth date and street address can be ineffective as well. Anyone can figure out those combinations if they have your wallet with an ID.

Become a Member

If you’re planning to open a personal savings or checking account in Ashland, KY, turn to Members Choice Credit Union. When you become a member, you can be confident that your future financial transactions with us will be safe and convenient. Call us today for more inquiries!