Debit cards offer freedom, flexibility and security – and they can be a great way to take care of business online or on the go. Debit transactions are ideal for many everyday needs, from buying event tickets, paying at the pump or getting cash for a night out with friends.
There are several types of debit cards and debit transactions available to you.
Debit card types
Today, many banks and credit unions give you the option of having a personal identification number (PIN)-only debit card (also known as a basic “ATM card”) or a dual-use debit card. Dual-use debit cards allow you to make both PIN-based and signature purchase transactions as well as cash withdrawals.
Below is a quick how-to-guide on PIN-based and debit transactions without a PIN.
With secure PIN-based debit, you enter your PIN to get cash from an ATM, make purchases at any PIN-equipped retail location or get cash back from many retailers. Your transaction request is processed immediately and is reflected in your account almost instantly.
You can also make in-store debit purchases by signing the receipt. It’s just like buying with a credit card, except that with a debit card, the funds are taken straight from your account rather than borrowing the money from a financial institution. Most signature debit transactions show up on your account within a few days. You can make signature-based transactions at retailers and service providers across the country.
You can authorize debit transactions in several other ways.
Card-not-present purchases: For online or phone-based purchases, you complete a “card-not-present” transaction without providing your PIN or signing a receipt. It’s like a phone or online credit card purchase, except the funds are taken directly from your checking account.
Debit direct: Debit cards also offer a quick and easy way to make regular payments – like your gas or electric bill, rent, mortgage, car insurance or student loan bills – online or over the phone. In fact, a growing number of cities, property managers and lenders now let you make automatic debit direct payments from your checking account. Debit direct can be a smart and simple way to manage your bills.