MasterCard Debit Cards
The Popularity of Debit Cards
These days, almost everyone has debit cards. And since they're so easy to use, why not? You can use debit cards (particularly MasterCard debit cards and Visa debit cards) anywhere that MasterCard and Visa are accepted. Gone are the days of quickly writing a check in line at the grocery store, having to dig out your ID and waiting for approval. You can now use the "pay-at-the-pump" feature at gas stations using your debit card instead of your credit card if you choose to do so. And you can opt to type in your PIN number at the little machine in the checkout line or you can just sign your name the way you would with a credit card. You can also get cash back with your debit card when you buy something at a grocery store or at most chain department stores. This is a great way to avoid getting hit with ATM fees. Besides, when you go to an ATM, there's always a slight risk of being robbed.
The problem with using your debit card to get cash back is that many banks are starting to realize that people are doing this, and they're losing out on precious ATM fees. In an effort not to lose so much money this way, some banks are starting to charge a fee when you use your PIN and get cash back. The really bad part is that they don't tell you! The Federal Reserve is investigating this, and it will probably result in many banks having to disclose this fee to you. About 20% of all banks are starting this practice. If you find out your bank is doing it, close your account immediately and open one at a bank that doesn't have questionable practices. Make sure your new bank discloses all fees.
All material copyright © 2008 About Prepaid Cards. All rights reserved.
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