Operation of a Debit Card
Debits cards are electronic account cards that offer a safe, convenient alternative to making payments with cash and cheques. Most banks and building societies will provide you with a debit card when you open a current account with them. A current account is a standard, day-to-day bank account that is easy to open and maintain. There are some specialised current accounts, such as children's accounts and basic current accounts, which may provide an alternative electronic card instead, such as a cash card. Cash cards do not offer all the services provided by a debit card, such as enabling you to make cash-free purchases, but do allow you to withdraw cash from certain cash machines.
Using your debit card
There are two basic ways to use your debit card. Firstly, you can withdraw cash from your current account at any one of the thousands of cash machines in the UK: usually free of charge. Most debit cards will also allow you to withdraw cash abroad. Secondly, you can use your card to pay for goods and services anywhere you see the payment logo that corresponds to the one printed on your card. Examples include shops, restaurants, garages, supermarkets and online retailers. To authorise transactions in person you must enter your Personal Identification Number (PIN) to confirm that you are the cardholder, or, where Chip and PIN facilities are not used, sign a debit card receipt. Chip and PIN is the security system that the majority of UK debit cards use to help prevent fraud.
Cashback
Cashback is a relatively new service for UK debit card holders. Cashback allows you to withdraw cash free-of-charge alongside a purchase by requesting cashback from the retailer. When you make a purchase in a store, you may request up to one hundred pounds in cash. If a retailer offers the cashback service, they will add the amount of cash you request onto the transaction amount. Essentially, your purchase is combined with a cash withdrawal. Cashback has become very popular in UK supermarkets, where customers can withdraw cash while paying for their weekly shopping, removing the need to visit an ATM.
Viewing Your Balance
As your debit card is linked to your current account, you may only spend or withdraw money that has already been deposited in your current account. The easiest way to view your balance is at an ATM. You can view your current balance on-screen, or request a print-out of your most recent statement. Alternatively, you may wish to use telephone banking or internet banking. If you use the latter, you can view and manage your current account online. New services are currently being developed to extend internet banking services to mobile telephones, so that you can manage your current account wherever you are, whenever you wish.
Purchase Protection
Unlike credit cards, debit card transactions are not protected by the Consumer Credit Act. If you make a purchase on your credit card, your credit card provider is also liable for that transaction. If, for example, a computer manufacturer goes out of business and fails to deliver your laptop, your credit card provider may refund your payment. If this situation were to occur after paying by debit card, you would have to pursue the computer manufacturer yourself for compensation.
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