- There are two types of debit cards: bank-issued or prepaid.
- You must have money deposited into an account to use a debit card.
- To activate a debit card, call customer support and set up a PIN number.
A debit card withdraws money directly from your bank account so that you can make a purchase or get cash.
Because a debit card is connected to your account, the money is immediately deducted as you spend, and you don't build balances that incur interest charges like you would on even the best credit cards.
Using a debit card to make a payment is almost exactly like using cash, just with an electronic transaction and record of your purchase.
Overview of debit cards
- Most checking accounts come with a free debit card
- Debit cards can be used at stores, restaurants, or online
- Debit cards can be used at ATMs to withdraw cash
- Debit cards only give you access to your available cash; there is no borrowing funds — or accruing interest — like there is with a credit card
- The best debit cards offer rewards or cash back, similar to credit cards
- Your bank or credit union may charge fees for certain debit card activities, including overdrafts
Benefits of using debit cards
- Having another method beyond cash can be useful, especially for larger purchases
- Contactless payments allow for a streamlined experience when shopping
- Depending on the card, you may also have access to budgeting tools through a mobile app
Types of debit cards
There are two primary types of debit cards:
Bank-issued debit cards
Most checking accounts come with a debit card so that you can access the money in your account easily. Debit cards are usually free to use, though some banks or credit unions charge a fee for ATM use, overdrafts, and replacing a card.
Prepaid debit cards
A prepaid debit card is loaded with a specific dollar amount, much like a gift card. It's not linked to an account at a bank or credit union and it can be used anywhere the card issuer (Visa, Mastercard, etc.) is accepted. You may be able to add more money to the card when it runs out.
The U.S. government often sends people their federal benefits on prepaid cards as a safer alternative to cash or a check.
Eligibility requirements for a debit card
You will need to complete paperwork and some type of application to open a checking account.
The requirements for obtaining a debit card are pretty straightforward. Typically, several forms of valid identification are needed, which could include a combination of a driver's license, passport and/or Social Security card. People under 18 may need an adult to cosign if they are opening a checking account.
How to apply for a debit card
1. Open a checking account
Checking accounts can be easily opened at a bank or credit union, although some may have a minimum opening balance requirement — the amount of money you must store there in order to keep the account open without paying fees to the bank. Be prepared to put money in the account immediately.
Some checking accounts might also have activity requirements, which dictate how often you must be depositing money or using the account in order to avoid paying fees. Also, you'll probably want to choose a bank or credit union with a wide network of ATMs in your area, which you should be able to use to withdraw cash to avoid bank ATM fees.
To avoid common bank fees and maintenance requirements, you could choose one of the best checking accounts.
When you are opening your checking account, tell the banking representative you would like a debit card to be linked to your account. It may take a week for the card to arrive in the mail. In some cases, you may be given a temporary card to use until the official one is generated.
2. Get a prepaid debit card
If you don't have a need for a checking account or simply want a one-time use debit card, you can purchase a prepaid debit card through most grocery stores, pharmacies, and big-box retailers, or online through a card issuer such as Visa or Mastercard. You can also generally get a prepaid debit card online.
The price you pay is typically the balance of the prepaid card plus a small fee.
Activating your debit card
When you receive your debit card, you need to activate it by visiting a website or calling the bank's or card issuer's dedicated phone number. When you get your card in the mail, it will come with directions on how exactly to activate it.
If you're activating a debit card online, be sure to use a secure internet connection. Don't activate your debit card on a public Wi-Fi connection like in a coffee shop.
Setting up a PIN
A PIN is a numeric password you use to verify transactions through your debit card.
Although your debit card may arrive with a pre-set PIN, you can select your own PIN, and you can generally change it during the activation process. Like any other password, your PIN should be kept private, since it provides access to important services like the ability to withdraw cash, change personal information, and more.
Because PINs protect sensitive information (and your cash), you'll want to choose a PIN that is not predictable should your debit card be lost or stolen.
Here's what to avoid when choosing a PIN:
- Simple number sequences like 1234 or 0000 (including repetition: 1122 or 2233)
- Dates, such as your birth year or spouse's birthday
- Any part of your Social Security Number
- Any part of your address or phone number
Where to use your debit card
While you can generally use a debit card at any ATM, you'll usually have to pay a fee for the privilege of using one that isn't affiliated with the bank or credit union that issued the debit card.
However, some new online banks reimburse you for debit card fees up to a certain amount. If your bank does that, it will tell you up front.
Ideally, you'll want to choose an ATM that does not charge a fee. Even $1 or $2 at a time adds up.
If there is an ATM fee, make sure to check your statement to ensure the fee was charged correctly. Also, be aware that this fee is deducted from your checking account balance — you can't opt out of paying the fee.
Using your debit card safely
Using debit card security features
Both bank-issued and prepaid debit cards have security features to help you use and manage your cards. For example, you can might be able to get fraud or transactions alerts through a message or email.
You can also temporarily lock cards — something that may be useful if you have a debit card for a minor.
Canceling a debit card if it's lost or stolen
Because your debit card pulls funds directly from your checking account, it's important to take swift action if your card is lost or stolen. The quicker you can have your bank or credit union cancel the debit card, the less opportunity someone has to use your card to make purchases or withdraw cash.
"Pick up the phone," says Joshua Hastings, founder of Money Life Wax. "Call your financial institution to notify them it has been lost or stolen. Your financial institution will cancel your existing card and replace it; this typically takes 10-14 business days."
You'll also want to monitor your checking account closely to make sure no one is using your card who shouldn't be.
FAQs
What do you need to get a debit card?
You may need to provide basic information about yourself, such as your name, address, and Social Security number. A government-issued ID like a passport or license may also be necessary to get a debit card.
Can you get a debit card without a bank account?
Yes, you can can get a prepaid debit card. The price you pay is typically the balance of the card plus a small fee. Depending on the card issuer, you may be able to reload the card when the funds run out, but it will not be connected to a bank account.
How old do you need to be to get a debit card?
You need to be at least 18 years old to get a debit card in the U.S. You may be able to open a checking account as a teen with a parent's consent.
How do you activate my new debit card?
Activating a new debit card is as simple as calling the number on the back of the card and following the prompts. It should take no more than five minutes.
How can you use a debit card safely?
Keep your PIN secret and safe. Also, monitor your checking account regularly to ensure no purchases are being made that you did not authorize.
