“What about Bob?” The movie with Richard Dreyfus and Bill Murray was a box office hit. At Chelsea State Bank we have our own Bob. He needs some guidance, too. He understands that he can get money using a debit card in an ATM, but there’s more Bob needs to learn about debit cards, beyond what are they are and how to you use the card.
Bob has already learned that a debit card, also known as a bank card or check card, is a plastic payment card that can be used instead of cash when making purchases. It is similar to a credit card, but unlike a credit card, the money comes directly from Bob’s bank account when initiating a transaction.
But there are other questions that Bob needs to consider and be able to answer as he works through this first lesson.
Can you use a debit card to buy online?
As much as you might resist it Bob, debit cards should not be used to pay for online transactions; a credit card is always safer for e-commerce. You’re not as protected against fraud when you use a debit card, and disputes with those cards can be difficult to resolve.
How does a debit card differ from a credit card?
Bob, the key difference between the two cards is where the money is drawn from when a purchase is made. When a consumer uses a debit card, the money comes directly from his checking account. When he uses a credit card, the purchase is charged to a line of credit for which he is billed later.
What is the main purpose of a debit card?
Bob, debit cards serve a dual purpose: they allow you to withdraw money from your checking account through an ATM or through the cash-back function many merchants offer at the point of sale. It also allows you to make purchases.
Want to know what Bob has learned about debit cards? Check out Bob’s video or give us a call and we will walk you through the same lesson.
Bob’s debit card video was produced by 2188 Studios, a small Michigan production company led by Ben and Lucas Daniels based in Chelsea, and directed by Michigan native Jeff Daniels, with actors from the Purple Rose Theatre Company in Chelsea.
