Managing finances can be a challenging task, and finding the right payment method can be daunting. Fortunately, debit cards personalised or standard, can provide a practical solution. They resemble credit cards, but instead of charging you for purchases later, they deduct the funds immediately. This makes the process quick, easy, and hassle-free. By using a debit card, you can have peace of mind knowing that you’re effectively managing your money. And now that you are a debit card user, you must be careful. So, we have mapped out a few mistakes that you should avoid.
Some common mistakes to avoid when using debit cards
The errors include overspending, forgetting to log out of your online banking account, and not keeping track of your card’s expiration date. Let’s learn in detail.
- Regular ATM withdrawals – It’s important to keep track of how often you’re using the ATM and to withdraw only the amount you actually need. Otherwise, you risk draining your account and potentially incurring overdraft fees. So, it’s wise to use the ATM sparingly and plan your withdrawals ahead of time to avoid any unnecessary fees or charges.
- Debit card charges – Not knowing about debit card charges can be hurtful later on as they can add up quickly and cause your account balance to dwindle. Some banks charge fees for using your debit card for particular transactions, such as foreign transactions or ATM withdrawals from other banks. Additionally, some merchants may charge a convenience fee for using a debit card instead of cash. It’s important to read the fine print and understand all the fees associated with your debit card to avoid any surprises later. Keeping track of your transactions and regularly checking your account balance can help you stay on top of any charges or fees.
- Many debit cards – Using multiple debit cards at the same time can be confusing and may lead to overspending. It’s better to stick with one or two debit cards and use them wisely. Having too many debit cards can also make it challenging to keep track of your spending and could potentially put you at risk of fraud or identity theft. If you have multiple savings accounts, it’s best only to use debit cards from customer-friendly banks, like Kotak811, and monitor your accounts regularly to ensure no unnecessary charges are levied.
- Using the wrong PIN – Many banks have a security feature that hotlists or blocks your debit card if you enter the incorrect PIN more than a set number of times. This is to protect you from fraud or theft. If you enter the wrong PIN multiple times, it’s best to contact your bank immediately to report the issue and get a new debit card if needed. Remembering your PIN or keeping it in a secure place is essential to avoid any inconvenience.
- Telling other people your ATM PIN – Sharing your ATM PIN with others can put you in a vulnerable position and potentially lead to fraudulent transactions on your account. It’s essential to keep your PIN confidential and not share it with anyone, including family or friends. If someone else has access to your PIN, they can withdraw money from your account without your knowledge or consent. This can lead to financial losses and can be a stressful experience. To ensure the security of your account, it’s best to keep your PIN private and not disclose it to anyone.
- Not paying attention to online purchases – Careless online transactions can lead to debit card loss if you’re not careful. For instance, if you share your card details with suspicious websites, your card information can be stolen and used for fraud. It’s important to only make online transactions on secure websites with a padlock symbol in the address bar and avoid sharing your card details with anyone. Additionally, regularly checking your account balance and transaction history can help you detect unauthorised transactions and take action immediately.
Must Read: How To Activate A Debit Card In A Few Easy Steps
Conclusion
Utilising debit cards streamlines financial management. However, vigilance is crucial to avoid common mistakes such as overspending, neglecting account security, and ignoring transaction details. Optimise your debit card experience by limiting ATM usage, understanding associated charges, and using a secure PIN. Keep your financial information confidential, monitor online transactions, and maintain a disciplined approach for a safe and hassle-free banking experience.
