One of the most widely utilized payment methods in use today is the debit card. Using debit cards to make purchases is easy and practical. These cards have the same appearance as credit cards but are directly connected to your bank account. Every time you make a purchase, money is deducted immediately from your account, making the process quick and easy.

There are several consequences you should be aware of for wise money management every time you choose to swipe that small piece of plastic. Which of the top five debit card errors are you committing? Read this article to learn more.

6 debit card mistakes and how to avoid them

Debit cards may be practical tools for gaining access to funds in checking and savings accounts. Unfortunately, debit card issues including lost or stolen cards, compromised PINs, overdrawn accounts, and unauthorized payments are frequent.

You should avoid performing some actions with your debit card, though. Here are five debit cards errors to steer clear of:

Failing to pay great attention to your debit card account balance. 

Sometimes it takes a few days for a purchase made with your debit card as “credit” to appear on your account. You run the danger of “bouncing” transactions if you only depend on the account balance displayed when you check your account online. That amount could not accurately reflect the money you have previously spent. So that you always know how much money is in your account, keep a check register and log every transaction on a regular basis.

Using the ATM regularly

Even though a debit card works much like cash, there are situations when you must complete a purchase using cash rather than a card. Although rushing to the closest ATM seems to be the fastest and easiest option, ATM fees from banks other than your own can pile up rapidly. When you require cash, visit your bank instead of using the ATM right away, or earn cash back the next time you use your debit card at a retailer. Your bank won’t charge you to withdraw cash, unlike an ATM, and most shops let you get cash back at the register at no additional cost.

Not paying attention to debit card charges and other hidden fees

Some banks levy annual fees for using a debit card, which isn’t usually a problem with debit cards. When applying for a debit card, be sure to read the small print since sometimes these costs are only assessed if the card is not used a specific number of times throughout the year. The easiest approach to avoid issues with a debit card is to use it carefully and diligently. This will also assist to guarantee that there is always enough money in the checking account to pay for purchases.

Utilizing many debit cards

To take advantage of the debit card offers from several banks, many people try to carry multiple debit cards. However, since each card has a unique set of features, fees, and interest rates, handling many cards can be challenging. People who use several debit cards sometimes forget the various fees that go along with each card, which leads to inadvertent spending. Depending on your needs and way of life, it’s best to just have two or three debit cards on hand.

NOT using your debit cards strategically

Although a debit card may prevent you from overspending, it also provides scammers with access to your bank account. That should cause you to pause given the frequent reports of database breaches, which included Orbitz and Lord & Taylor in 2018 among others.

Credit cards give customers with additional safeguards and serve as a mediator in disputes with merchants or service providers. Numerous cards provide extra benefits, such as replacing stolen products and extending manufacturer warranties. All significant purchases and transactions with a high potential for fraud, such as buying online and paying for petrol, should be made with credit cards.

Writing your pin carelessly on your card or documents

Even though it seems painfully apparent, this point merits repetition. our PIN is intended to keep your account balance safe by limiting debit and ATM transactions to those who are aware of it. While it may be tempting to write your number on your card so you don’t forget it or carry it on a piece of paper in your wallet or handbag, doing so is the equivalent of giving anybody who steals or accidentally finds your card and number a blank, signed check.