CUSTOMERS DISCOVER ADVANTAGES, DRAWBACKS OF ATM DEBIT CARDS.Byline: Deborah Adamson Daily News Staff Writer A few months ago, Connie Rutt expected to get her familiar bank ATM card An ATM card (also known as a bank card, client card, or cash card) is an ISO 7810 card issued by a bank, credit union or building society. Its primary uses are: It even had the Visa name with its little metallic logo. It was a Visa debit   The old Visa and Delta logos. card - a jazzed-up version of her trusty old card for automatic-teller machines, but with additional features similar to those of credit cards. She can use it to withdraw or deposit money at an automated teller machine automated teller machine (ATM), device used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. , buy groceries and gas, and pay for merchandise and meals. Funds are withdrawn from her checking account, as with an ATM card. ``It sounded like a good idea,'' the Northridge resident said. ``I'm on a debt-management program, so I don't have any credit cards. To use my ATM card in lieu of a credit card would be very handy to me.'' Debit cards debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. are appealing - they help users manage their money better by not offering a credit line while maintaining the convenience of a credit card. ``Once customers discover what the card can do for them in terms of convenience and flexibility, I think they'll be addicted ad·dict·ed adj. 1. Physiologically or psychologically dependent on a habit-forming substance. 2. Compulsively or habitually involved in a practice or behavior, such as gambling. to it,'' predicted Kathy Wohlford, senior vice president of personal financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. at Home Savings of America in Irwindale. Home Savings is launching a marketing campaign for its MasterMoney card. So is Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , which introduced Versatel (Visa) Checkcard in December. ``The response during this first year has been beyond expectation,'' said Harvey Radin, spokesman at BankAmerica Corp. in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . Debit cards have been around for decades. The debit card most people know is the ATM card. Technically, debit means ``to subtract A relational DBMS operation that generates a third file from all the records in one file that are not in a second file. .'' But ATM debit cards have been used for a variety of electronic transactions including deposits and fund transfers. ATM cards also are used in ``point of sale'' purchases - where users swish their cards through electronic units to pay for gas or groceries. The Visa Checkcard and MasterMoney debit cards retain all the perks perk 1 v. perked, perk·ing, perks v.intr. 1. To stick up or jut out: dogs' ears that perk. 2. To carry oneself in a lively and jaunty manner. of an ATM card and offer wider acceptance worldwide. Because of the Visa or MasterCard network, the cards can be used at locations that display these symbols. That means card holders can pay for dinner, make hotel reservations and buy merchandise at department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. with their debit cards. They don't have to fuss with writing checks or pile more charges onto their credit cards. They simply hand their cards to the merchant, who will make an imprint and have the customer sign the charge slip. Card holders also can use the cards at ATM machines (Automatic Teller Machine machine) A banking terminal that accepts deposits and dispenses cash. ATMs are activated by inserting a cash or credit card that contains the user's account number and PIN on a magnetic stripe. . Debit cards help budget-conscious consumers stay within their means, since purchases mainly are limited to the amount of money in checking accounts. ``It could help you manage your expenses,'' said Robert McKinley
Robert Elgin McKinley (born 14 August 1928 in Zurich, Ontario) was a Progressive Conservative party member of the Canadian House of Commons. , president of RAM Research Corp. in Frederick, Md., a payment card research firm. But consumers should exercise some caution with debit cards as well. When Rutt's friend lost all her cards in a burglary, the Northridge resident thought twice about keeping her debit card. ``Given that it's directly linked to my checking account, if I lose it even for half an hour or an hour, someone can go clean out my checking account,'' she said. ``That money's gone, instantly.'' The 33-year-old secretary canceled her card last month. ``My concern is that people would misunderstand mis·un·der·stand tr.v. mis·un·der·stood , mis·un·der·stand·ing, mis·un·der·stands To understand incorrectly; misinterpret. the debit card and not know the risks of using it like a credit card,'' Rutt said. It's true that debit cards will have a direct link to your checking account and funds can be transferred immediately or within a few days. But under federal Regulation E, users who report the theft or unauthorized use of debit cards within two business days are liable for a maximum of $50. If it goes beyond two business days, the liability ceiling is raised to $500, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the consumer and community affairs division of the Federal Reserve Board of Governors in Washington. If the card holder discovers unauthorized usage from a monthly statement, he has 60 days from the date of the report to notify the issuer. Otherwise, the card holder could be liable for the whole amount. The key, however, is ``unauthorized'' use, the Federal Reserve said. If you give someone - a relative or a friend - your personal identification number, then it would not qualify as an unauthorized transaction unless the issuer is notified that a particular person is not allowed to use your card. Consumers get better protection using credit cards. There's no time limit to report the loss and liability is capped at $50, the government said. Many debit cards also have annual or monthly fees, transaction and other costs, according to Consumer Action in San Francisco. When you use the card at an ATM that's outside your bank's system, there could be hefty charges as well. At Bank of America, there's a $1 monthly fee to use your debit card for purchases. But it can be waived if you meet the minimum requirements for your checking account to be free. If you go outside Bank of America's ATM system, there's a $2 charge per use. Unlike credit cards, debit cards won't give you a line of credit to use in an emergency, consumer advocates say. Generally, you're limited to the balance in your account. Payment is taken automatically or within three days, instead of longer grace periods before credit card charges are paid, according to Visa International. You also need to keep your receipts, so you can match your records against the bank's monthly statements. Since the debit card is linked to your checking account, you could overdraw TO OVERDRAW. To draw bills or cheeks upon an individual, bank or other corporation, for a greater amount of funds than the party who draws is entitled to. 2. if you're not careful. When you use your card at a retail store where an on-line authorization code An identification number or password that is used to gain access to a local or remote computer system. See authorization. is needed to approve your purchase, your funds are electronically earmarked for that transaction. So once your checking account runs out of money, subsequent purchases won't be approved. But you could overdraw if you also write Ichecks against the account or withdraw money before the merchants can send in their payment slips. That's because it takes two to three days for the bank to process and pay the merchant, Visa officials said. Know the facts Questions to ask when choosing a debit card: What are the monthly or annual fees for the card? What is the transaction charge when you use the card at another bank's ATM? What is the transaction charge when you use the card to shop? What are the daily spending and cash withdrawal limits? What is the policy on merchant returns and refunds? How do you dispute a charge on your account? SOURCE: Consumer Action, Daily News Research CAPTION(S): Photo, Box Box: Know the facts (See text) Photo: (Color) No capti on (Debit cards) |
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