Everything You Need To Know About Debit Cards
Debit cards are one of the most common forms of payment. Many consumers today opt to use the cards in their wallets (or connected to their smartphones) instead of cash or checks for purchases. But whether you already have a debit card or haven’t gotten one yet, it can be helpful to understand how they work as well as important things to consider so you’ll get the most out of a debit card when you’re ready to use it.
How Does a Debit Card Work?
When you use a debit card to make purchases, the amount of the payment is debited (subtracted from) the balance of the checking account linked to the card. You spend $5, and $5 comes out of your account. Sometimes that transaction appears instantly; sometimes it might be a few days before it shows up on your account, depending on how the purchase is processed. There are generally no limits on the number of transactions you can make with a debit card in a single day. However, most debit cards have daily withdrawal and transaction limits which apply when you use them to get cash from ATMs and perform other transactions with your debit card.
Debit Card Benefits
For ease of use, debit cards can’t be beat. You don’t have to worry about keeping cash in your wallet, and there’s always a record of how much you spent, and where, on your statement and in your Hills Bank Online account. Debit cards are accepted almost everywhere, in large part because most cards are part of either the Visa or MasterCard payment systems. In fact, many stores and other sellers prefer debit to credit cards because they pay lower fees on debit cards. You can also set up a mobile wallet on your smartphone or watch using your debit card to make payments even easier. Hills Bank debit cards support Apple Pay, Google Pay, Samsung Pay, and more.
Fees
Debit cards usually have low – or no – direct fees. However, you’ll need to watch out for overdraft fees, possible out-of-network ATM fees, any applicable transaction fees (such as getting cash back at the register), and any monthly fees to maintain the checking account that the card is associated with.
Didn't Make That Purchase?
If someone makes an unauthorized charge on your debit card, you will need to work quickly to reverse it. It’s important to check your monthly statements at a minimum, and better yet, keep up to date on your transactions regularly in Hills Bank Online. You can take action on a lost or stolen Hills Bank debit card right away by turning it off in Hills Bank Online. Simply log into your account and open the left-hand navigation menu, then click “Hills Bank Cards” followed by “Turn Debit Card On/Off.” Turning your debit card off will prevent any further transactions until you turn the card back on or are issued a new card. Then, give us a call at 1-800-445-5725 (1-800-HILLSBK) for further assistance.
Debit Cards vs. Credit Cards
While credit and debit cards appear to be very similar, and you use them in a lot of the same ways, what happens after you use the card is completely different. With debit cards, the amount of a purchase is deducted directly from your bank account balance. But when you use a credit card, the amounts you spend are recorded, appear on your monthly statement, and must be paid back in full by the due date to avoid interest charges.
Getting cash works differently, too. Unlike debit cards, getting cash using a credit card is considered a “cash advance” and can come with interest charges as well as a cash advance fee.
Learn more about the difference between debit and credit cards.
Special Programs
At Hills Bank, we offer special programs for our debit card users to help them save money – for themselves and their local schools!
- Simple Change: Save a little bit of money every time you use your Hills Bank debit card. When you make a purchase, your total will be rounded up to the nearest dollar, and the “change” will be deposited into an account of your choice.
- Classroom Cash: Earn money for the private school or public school district of your choice in our community each time you make a debit card purchase .
Prepaid Gift Cards
Unlike a regular debit card, which gives you access to the amount in your checking account, a prepaid card is loaded with a certain amount of money. When that money has been spent, the card must either be reloaded or replaced. Though we currently aren’t offering new reloadable cards, you can buy a prepaid card as a gift or even as a way to set a budget for yourself. Learn more about our prepaid card options.
Questions?
If you have any more questions about how debit cards work or specifics about your account, please feel free to reach out! You can stop by any of our locations, give us a call at 1-800-445-5725 (1-800-HILLSBK) from Mon – Fri 7 a.m. – 6 p.m. and Sat. 8 a.m. – noon, or click the “Chat Here!” bubble to connect with a banker during normal business hours.
