Be aware of some drawbacks to using your debit card. For starters, there are some circumstances when merchants will place a temporary hold or block on money in your account which can last a few days. What does this mean to the card holder? It means that the merchant has taken a precaution to protect the charges you have or may have charged by placing a block on a certain amount in order to reserve room for any additional spending on your part.
Examples of blocking by a merchant:
- You use your debit card to secure your hotel room cost. The hotel will block out a certain amount from your bank account which will promise them payment if you do not pay your bill at check out. The type of hotel and services they offer will vary the amount that is placed on hold. The costs the hotel is protecting payment for are from room service, movie charges, long distance phone charges to charges made to the room at the gift shop or bar. The hotel will want to make sure they get paid so they place a hold on an estimated amount. Once you have checked out and paid any outstanding balances, the hold will clear your account in a few business days.
- If you pay for gas with your debit card, the merchant will place a hold for a certain amount before approving your transaction. The amount placed on hold will be smaller than a hotel’s hold, but enough to fill a large gas tank. Once you get approved, you can pump your gas for the undetermined amount of fuel. It still may take a business day or two before the the rest of the amount blocked is open for use.
Being aware that these blocked transactions could allow your accounts to go under and create additional fees. Keep tabs on when the money is released so you know when the money is free to use without default.
You will protect your debit card if you keep the number, expiration date, security code on back, and PIN from getting into someone else’s hands. Never write your PIN down on the card or on other paper with any of the other information to be safeguarded. It does not take you losing your card for someone to create fraudulent transactions on it. Debit cards do not carry the same protection from the Truth in Lending Act for credit cards. The Electronic Fund Transfer Act (EFTA) protects you from errors, but you must report them sooner than later. Your liability will be limited to $50 of fraudulent charges if they are reported within two days of the transaction. When it takes longer to report these transactions, you could be liable for up to $500 of any fraudulent charges. If you wait longer than 60 days to alert your bank you may be liable for all the transactions made after the 60 day period.
Banks will support their customers when things are done in a timely fashion. With a debit card, the thief has all ready gotten away with your money so be prepared and protect your accounts. Keep a watchful eye on the balances and notify the bank as soon as you see anything than what you expected.
Spotya! Payday Loans believes in the security of your money and tries to uphold that with protected transactions between accounts. Lending and repaying transactions are done through the automatic debit system on due dates that are set up by the clients.
