Page 47 - Book6E
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CHAPTER 5
Using Debit, Check, and ATM Cards Wisely and Responsibly
Chances are you’ve seen the VISA check card television commercial depicting a delicatessen as a bustling manufacturing plant floor with workers serving the lunch crowd with assembly line speed and preci- sion. Likewise, customers automatically pay for their meals by quickly swiping their VISA check cards, until one customer pulls out cash (yes, actual paper money; can you believe it?), which brings the entire lunch line process to a crashing halt.
Without question, debit and ATM cards are rapidly replacing cash and checks as a convenient way to pay for purchases. While quick and easy, these cards are not without risk, so it’s wise to take necessary precau- tions.
A Debit Card by Any Other Name
Frequently the terms debit card, ATM card, check card and bank card are used interchangeably, but there can be differences depending on the services and policies of the bank, credit union, or other financial institutions that issue them.
First off, a debit card or check card is not a credit card. A credit card provides access to a line of credit. Users are limited in how much they can charge, but they aren’t required to repay the full amount each month. Instead, the balance “revolves” or accrues interest with a speci- fied minimum payment due.
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