Tulsa World: Debit cards come in handy But watch your spending limits

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Debit cards come in handy But watch your spending limits

With debit cards, accessing money from your checking or savings account can be done with a simple flick of the wrist. Many times a signature isn't required. Bloomberg News photo

By NANCY HOLLINGSHEAD World Staff Writer
Published: 11/10/2009 2:23 AM
Last Modified: 11/10/2009 5:48 AM

Swipe.

With debit cards, accessing money from your checking or savings account can be done with a simple flick of the wrist. Many times a signature isn't required.

In fact, there's such a simplicity to the cards that many bank customers have stopped using checkbooks.

Last year, consumers surveyed by the National Retail Federation for the Christmas holiday season said they were 10 times more likely to use a debit card than a personal check, according to spokeswoman Kathy Grannis. (The 2009 survey will be released next week).

The 2008 survey reported 41.5 percent of shoppers were using a debit or check card for purchases, 31.5 percent were using credit cards, 22.8 percent were using cash and 4.3 percent were using personal checks.

"I expect that last figure to drop even more in the years to come," said Grannis, in a telephone interview.

In an interview on Oprah.com, Nicki Waters, a Visa spokeswoman, said 75 percent of adults carry a debit card today, noting "they are incredibly convenient, easy to use and an effective budgeting tool."

Of course, that's if you remember to write down each transaction, according to Margo Mitchell, president and CEO of Credit Counseling Centers of Oklahoma Inc.

"There are pitfalls," she said. "You need to keep track of what you're charging. Every evening you need to put it in the checkbook before you forget."

When not to use debit cards

Don’t

use debit cards for big purchases. Credit cards allow you to reverse or dispute charges, and some extend warranties.

Don’t use a debit card online without checking liability. Unauthorized charges on some debit cards must be reported within 48 hours to cap the liability at $50, although Nicki Waters, a Visa spokeswoman, said Visa debit cards have zero liability. If you’re confused, Elaine Dodd, vice president of fraud for the Oklahoma Bankers Association, said bank clients “need to read the small print on their card agreement” to see what their liability is, or contact their bank.

Don’t click “debit.” If you can, click on “credit” during a transaction — debit card companies might extend the same zero-liability protection if they are processed like credit cards.

Don’t keep a lot of money in your debit card account. Thieves can empty it out pretty fast.

Source: ShopSmart magazine; OBA

Nancy Hollingshead 581-8363
nancy.hollingshead@tulsaworld.com By NANCY HOLLINGSHEAD World Staff Writer

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