When you open up a checking account at your local bank, you are always given a debit card so that you can withdraw money out at the ATMs. The money is withdrawn from your account automatically, as it is when you use the debit card to pay for things. You may have noticed that your debit card also has the option to be used as a credit card. Many people are confused as to why this is.
Debit cards can be used as credit cards because some merchants only accept credit cards. This way, you can use your debit card everywhere that takes credit cards. However, bear in mind that just because your debit card gives you a credit card option, it does not mean that you suddenly have a new credit card with a line of credit available for you to use. With a debit card, the amount you can spend is limited by the amount of money you have in your bank account. It is also limited by the amount of money you spend in one day – many banks have a daily limit of debit card expenditures. So, if your bank has a debit card limit of $1,000, you won’t be able to spend above that $1,000 limit – even if you have $5,000 in your bank account. This is where you may want to consider using the credit card “side” of your debit card, because it will allow you to buy at any dollar amount so long as your account has sufficient funds. Another useful aspect to using the credit side of your debit card is that when you have a dispute about a charge in your account, you can dispute the amount to the credit card issuer. If you use your debit card and then have a dispute about a charge in your account, the bank will have to get involved.
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