How safe is your debit card?

(ARA) - Many people choose to use a debit card over a credit card or cash because it's more convenient, but did you know it can also protect you from theft and help you better manage your money? Knowing more about your debit card's features will help you get the most out of your banking relationship.

Today, debit cards come with many built-in security features. Having your photo on your card makes it harder for others to use it if it's lost or stolen because merchants can easily identify that the card belongs to you. Fraud monitoring reviews how and where your card is being used and helps to block potential fraud if unusual patterns are detected. Check to see if your bank offers these features and reimburses you for purchases you didn't make. Make sure, especially if you're shopping online or traveling, that your bank will protect you when you need it most. Bank of America reimburses its customers for fraudulent card transactions. Its debit card protection comes automatically as a feature for all customers.

"We want our customers to be 100 percent confident that we're doing everything we can to protect their accounts from fraud and theft," says David Owen, Bank of America Payments and Products executive. "Using a debit card securely should be hassle-free, and even simple things like adding a photo ID to your card can make a big difference."

You should also know what fees your bank may charge and how you can avoid them. Some people run into trouble by using their debit card when they do not have enough funds in their account to make a purchase. This simple mistake can lead to unexpected bank fees that quickly add up. See if your bank offers online banking, balance alerts, text or mobile banking to help you stay in control of your finances on the go. These tools let you transfer funds between accounts, pay bills, and check your balance whenever and wherever you choose. Knowing how much money is in your account or transferring funds when your balance is low will help you avoid unexpected overdraft fees on your debit card.

New regulations are requiring some banks to change their overdraft fee policies, which could affect how you manage your finances. Make sure you know how your bank handles debit card transactions when you don't have enough money in your checking account. No one likes to find out that a $4 cup of coffee cost $40 because you didn't realize the purchase would overdraw your account.

Some banks are taking steps to help. Bank of America has made changes beyond what the regulations require in order to reduce the possibility that customers will overextend themselves with a debit card. When customers don't have enough money in their checking accounts, everyday debit card transactions like grocery store purchases will be declined so there will be no unexpected overdraft fees for those transactions. Beginning this fall, customers may be given the choice at their ATMs to proceed with the transaction and be charged a fee if they don't have the funds available, or not to proceed with the transaction and avoid the fee.

Consumer advocate Martin Eakes, CEO of the Center for Responsible Lending, recently said of Bank of America's new overdraft policy, "This is really a big deal. As the largest debit card issuer in the country, Bank of America has demonstrated true leadership in listening to its customers and now has the largest base of safe and consumer-friendly debit cards."

Some customers may choose to sign up for overdraft protection services that link a checking account to another account, such as a savings account or credit card, to ensure their transactions are not declined. The bank will automatically transfer available funds from the linked account to help cover the overdraft for a small fee.

There's a lot to consider when it comes to fully understanding your checking account and its benefits. Ask your bank about free security features and understand how overdrafts work. Knowing what to expect to avoid surprises will help you protect your bottom line.

Courtesy of ARAcontent