Debit card variations have been around for longer than you may think, but the modern debit card came into popular use after the turn of the new millennium. Card and point-of-sale technology have continued to advance since then. Today, you may not even need to enter your pin or have your card on you to pay with a debit card at checkout.
While you may have already been using your debit card to some extent, the Covid-19 pandemic increased the need for cashless payments. Whether shopping online or using contactless payment at local stores and restaurants, chances are you’re using your debit card more than ever these days. That’s why it’s a great time to review the benefits that come with using your Dieterich Bank debit card and make sure you’re getting the most out of it!
How does a debit card work?
A debit card looks just like a credit card but instead of borrowing money when you use your debit card, the money comes right out of your checking account. You can use your debit card to make purchases or to withdraw money from ATMs.
When making purchases, you can run your debit card as you would a credit card and enter your pin number on the point-of-sale equipment. If you use your debit card to make an online purchase, you’ll need to enter the 3-digit security code found on the back of your card.
To use your debit card at an ATM, simply enter your pin number. Just bear in mind that you may incur a fee if you use a non-Dieterich Bank ATM. Find your nearest in-network Dieterich Bank ATM. Some ATMs may charge their own fee as well, so pay attention when using any non-Dieterich Bank ATM.
However, with Extreme Green Checking, Dieterich Bank offers ATM refunds up to $15 when you meet qualifications.
Finally, you can add your debit card to the mobile wallet app on your smartphone. When shopping anywhere a mobile wallet is accepted, you can simply tap your smartphone instead of taking your debit card out of your wallet or even having it on your person.
Now that you understand all the ways to use your debit card, let’s review the advantages of paying with debit cards!
Safe and convenient
Paying with your debit card is easier than remembering to stop and withdraw funds from an ATM and certainly more convenient than taking the time to write a check. With a debit card, you can complete your purchase in seconds.
Paying with your debit card also provides more security since they are embedded with an EMV chip. The EMV chip technology reduces the chance of card-present fraud or a fraudster attempting to replicate your debit card. If your debit card is lost/stolen, you can immediately turn off your card through online banking or the mobile app to prevent fraud and then report it to us by calling our Customer Care team at 800-699-9766. You can also customize transaction alerts through online banking to monitor when your card is used.
You can activate your debit card by calling the activation line on the sticker when you received your card, by calling 877-965-3344, or through our digital banking.
Stay out of debt
If you’ve had trouble with credit card balances in the past, a debit card can help you stick to your budget and stay out of debt. Link your bank account to a budgeting app or simply log transactions yourself with a spreadsheet or pen and paper. Since debit card transactions are immediately reflected in your bank account, it is harder to spend money you don’t have—and easier to keep track of your spending. To make sure you avoid excess spending and continue monitoring where your money goes, it is recommended to create and follow a budget.
Some of the most attractive credit cards, such as a cash back and travel rewards cards, also charge an annual fee. Alternatively, Dieterich Bank debit cards have no fees associated with purchases.
Better for Small Business
Business owners pay “interchange fees” for payment processing when you make purchases with a debit or credit card. That’s why many small businesses have a minimum purchase amount for debit and credit card transactions. However, interchange fees are generally lower for offline, pin-based transactions. So if you want to help your favorite small businesses, pay with your debit card when you don’t have enough cash on you.
If you'd like to also learn about the ins and outs of credit cards, we've got you covered!