ATM/Debit Cards vs. Writing Checks

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AIBL recommends that everyone should use their ATM/Debit Card, rather than writing a check...Why? Here is why we think you should:

-Some businesses—restaurants, for example—don't accept personal checks, but they'll accept credit cards and debit cards;

-Personal checks are rarely accepted outside your city or state, but can use plastic nationally and internationally

-Using plastic is faster than writing a check

-You have to remember to reorder checks when you run out

-Checks cost you money.

-You need a pin number to use your card, where as with a check, it can be easily stolen and forged, making you more susceptible to identity theft.

-Your personal information on a check , such as, your home address, may fall into the wrong hands! YIKES!

The difference is: whose money are you using?

Yours or a lender's?

A debit card gives you access to your own money. It works like a check because it draws upon your checking account balance.

You have to have money in the account in order to pay for something with a debit card.

For example, say you want to use your debit card to buy a concert ticket for $50.

You must have at least $50 in your checking account to cover the purchase.

The $50 is electronically deducted from your checking account. The actual deduction may take place hours later or even the next day.

Meanwhile, the card places a "hold" on the $50 right away, reserving your money for that transaction.

If you were to write a check, it could take days for the check to be processed and cleared. Many people often don't realize that the check hasn't cleared yet and may overdraw their account. Many people get in big trouble by writing checks and don't know how to balance their checkbooks. You can incur overdraft fees or bounce the check and have to pay an additional fee that the business will add on to the money you owe them.

So...we at AIBL highly recommend using your debit card and to buy a wallet, coin purse, card holder, or even a ziploc bag to put all your ATM/Debit card receipts into. Once you place the receipt into your holder, record it into a ATM/Debit Card Register to record all your transactions. Keep these type of records separate and organized.

We have attached a ATM/Debit Register for your use, which can be downloaded below...

WORKSHEET
Debit/ATM Register