Applying for a Debit Card in the US

Debit card has multiple functions. It does not only allow you to withdraw money from the ATM, but can also function as a credit card, i.e., you can use it to purchase merchandise at a grocery store or in an on-line store or to purchase gasoline.

In this section we address the various issues regarding Debit cards.

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Getting a Debit card

When you open a Checking Account in a bank, most likely, you will automatically get a debit card. If not, then talk with the branch employees/agents about getting a Debit card. Most of the times, debit cards are provided free by the banks.


Difference between a Debit card and a Credit card

The advantage of a debit card is that there is no interest accrued against its use, and normally there are no fees associated with it. You also don’t need to worry about repaying the purchase since the money is automatically deducted from your bank account when you use it. However, since the money is being deducted immediately from your account, it can be very dangerous if a thief gets your card. He or she might clean out your account along with the overdraft protection. With credit card, the worst case scenario is only losing a certain amount of liability fee (e.g. $50). The other disadvantage is that not every store or company accepts debit card as your method of payment, for example, usually you need to have a major credit card to rent a car.










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