Debit Card

Debit cards are becoming more and more popular, with good reason: they combine the best of two worlds. On the one hand, a debit card is like an electronic check. When you pay for something with a debit card, the money comes out of your checking account just like it would with a cashed check. At the end of the month, you get a statement that lists your transactions, much like a checking account statement. You don’t have to pay a bill at the end of the month, and you’re forced to stay within budget.

On the other hand, a debit card is like a credit card. If a store accepts Visa or MasterCard credit cards, for example, the store will accept Visa or MasterCard debit cards. So you don’t have to write a check and present every piece of ID you ever owned. And you can use a debit card out of state or in places where checks are not accepted.

Using a debit card wisely is the same as using a checkbook wisely. Keep a record of what you spend and what the balance of your account is. Unlike a credit card, you don’t have until the end of the month to cover the expense.

Follow the same security measures with a debit card that you would with a credit card. If you lose your card, call your credit union or bank immediately to limit your liability. Also notify your credit union or bank if any unauthorized transactions show up on your monthly statement.

Stored Value Card

A stored value card has a certain amount of money stored on it electronically. When you use the card, the money you spend is deducted from your total on the card. Phone calling cards are stored value cards. They have also become a popular replacement for gift certificates. If you’re hard to buy for, you may have gotten stored value cards for Christmas or your birthday.

Treat stored value cards like cash. If you lose one, you’ve lost whatever dollar amount was on it.

ATM Card

An ATM card can be used to directly access your checking or savings account. Depending on the network your credit union or bank is tied into, you can find an ATM almost anytime, anywhere. You insert your card, punch in your PIN (personal identification number), and tell the machine what you want it to do. The electronic processing network verifies your information and, if you’re withdrawing money, deducts the amount from your account and spits out your cash on the spot.

ATM fees have become a hot issue, and rightly so. When you choose a financial institution, one of the things you need to ask is what ATM fees there are. If you belong to a credit union that is part of the Credit Union ATM Alliance, there are almost 800 ATMs in Michigan that you can use without a surcharge.

When using an ATM card, be sure you are in a safe area and that no one is standing close enough to you to watch you put in your account number and PIN. Also be sure to notify your financial institution if your card is lost or stolen.

One Card

A one card, or multi-use card, is exactly what it sounds like: one card with many uses. One cards are becoming popular on college campuses and their popularity will probably spread in the future. The MCard, used at the University of Michigan, for example, serves as a: photo ID, library card, building access card, meal card, phone card, debit card, ATM card, and stored value card. That’s a lot of functions for one piece of plastic!

If you have a one card, you’ll want to be very careful with it. Not only does it carry information about you and your financial institution, but any stored value on it can be spent like cash.