Do you love the convenience of using a debit card? If so, you’re definitely not alone. 

After all, debit cards provide all the purchasing power of cash without having to carry around loads of money in your wallet. And yet it’s also important to understand how to use your debit card wisely. Fortunately, you’ve come to the right place to learn how to make purchases with debit cards while minimizing risks.

This article takes a look at common debit card mistakes that you need to be aware of. Keep reading to get the inside scoop on how to be a smart consumer.

1. Running You Card as Credit

Believe it or not, it’s not smart to run your card as credit when making purchases. 

Many merchants are required to pay more for credit transactions than debit card transactions. This doesn’t always directly impact the price you pay at the regi ster, but some smaller merchants will end up charging you extra for running your card as credit.

You should also keep in mind that debit card transactions are processed immediately at the time of purchase, thus the amount will be deducted from your account right away.

Here’s how to get a loan with just a debit card.

2. Not Tracking Your Account Balance

There’s no denying that debit cards provide a tremendous convenience. After all, they eliminate the need to carry around extra cash or to count out the exact amount of cash for the purchase.

The downside of this convenience is that many people fail to make note of each purchase in their checkbook register. It’s very easy to get in the habit of losing track of your account balance.

This bad habit can lead to potential problems. Also, keep in mind that banks make mistakes every day. 

For example, you could be overcharged for an item or charged an unnecessary fee by your bank. And yet you might not notice you if you aren’t keeping track of every purchase you make. 

It’s important to monitor your transactions so that you can be continually comparing your checkbook to your online account balance.

3. Making Large Purchases

You’d be wise to avoid making significant purchases with your debit card. There are a couple of reasons for this:

First, the transaction will be immediately deducted from your account. So if you don’t have the necessary funds available at that moment, the purchase won’t go through or you’ll be charged an overdraft fee.

Second, if you change your mind and decide to return the item, you might have trouble returning the item immediately.

4. Not Protecting Your PIN

Do you protect your PIN when withdrawing money at the ATM? If not, you definitely should. Because if someone sees you type in your PIN, they can then steal your debit card and use it freely until you close your account.

5. Overusing Your Card at the ATM

The use of ATMs might be fast and easy, but it can cost you. Keep in mind that when you withdraw cash from banks beside your own, they will charge you convenience fees.

A Guide to Avoiding Common Debit Card Mistakes 

You work hard for your money, that’s why it’s important to protect it. Fortunately, these tips for avoiding common debit card mistakes will help keep you on track.

Keep scrolling to discover more lifestyle tips and advice on our blog!