Connected to checking accounts, debit cards are used as if they were credit cards, bearing the logos of Visa or MasterCard. Debit cards, however, are not charged any type of fee since they only use the money available in the bank account they are attached to. Debit cards seem like a good choice, but considering the details will help you decide for sure.

A customer can choose whether or not they wish to receive a debit card at the time they open a checking account. There appearance is quite similar to that of credit cards and they are used in the same way, making purchases at restaurants and stores easy and quick. Plus, none of the charges associated with credit cards apply to debit cards. Bank commercials often glamorize the use of debit cards, as if using cash were the most terrible faux-pas in the financial world.

Debit cards teach people to manage money again when they have had trouble in the past with credit cards. They come complete with a safety net because they are tied to a checking account with a set amount of funds. Checks and cash are being pushed out of the way in favor of the “new plastic”.

Now that we know how a debit card functions, here is a word of warning. Debit cards are a smart choice if they are handled with care. Pitfalls do exist and a debit card user can fall victim if they are not careful.

In order to balance your checking account, all purchases made with a debit card should be recorded. ATM’s, a modern marvel of convenience, can be a huge source of problems for a debit card user since they offer instant cash.

If you do not use your debit card responsibly, the money in your checking account could disappear without a trace. Because transactions processed with your debit card do not clear instantly, the amount that the ATM tells you that you have in your account could be off. This may result in you overdrawing from your checking account.

Debit cards are also subject to “blocking” just like a credit card. This means that some merchants can block off a set amount of money in the account until your transaction with them is processed. Case in point: using a debit card to pay for a $20 visit to the gas station, but the store blocks off $50 on the card. If the extra $30 was earmarked for something else, you will run into problems until that block is removed.

If you are able to handle your money well and make responsible choices when it comes to spending, a debit card can be great tool. The misuse of these cards, however, can cause problems, including a checking account with a balance that dips down into the red.