Personal Finance Advice

You see the people glaring at you when you pull out your checkbook to pay for your groceries, and you’ve seen it so many times that you have grown to expect it.  It isn’t that you don’t know that whipping out a debit card to pay for your items would speed up the process considerably, but the fact is that you have been using your checkbook to pay for things for so long that the very thought of deviating from it makes you a little nervous.  Maybe you don’t even know how to use the swiper at the register.  Do you swipe the card yourself, or do you hand it to the cashier? Do you have to know your PIN? What happens if you make a mistake?

Relax.  It really isn’t that complicated.

Even if you have never used your debit card before, you’ll be amazed at how simple it is to make purchases with your card.  In fact, chances are that once you get used to using your debit card for making purchases that you’ll rarely use a check to pay for anything anymore. 

Here is what you need to know to use your debit card to make purchases with a merchant:

It isn’t a credit card.  You must have the funds available in your checking account in order to make purchases.  Some financial institutions will allow you to overdraw your checking account using your debit card but you’ll wind up paying hefty fees.  Even if your card features a Visa or MasterCard logo on the front, if it’s a debit card there is no revolving credit account attached to it.

Know your PIN.  You should have received your personal identification number (PIN) from your financial institution when you opened the account.  It’s usually a series of three or four digits.  If you don’t know what it is and can’t find any documentation of what it is, contact your financial institution to get a new one.  You may have to submit the request in writing.  Don’t write your PIN number on your debit card.

If you truly have anxiety about using your debit card, choose a time to go shopping when you know that there will not be long lines and people urging you to hurry up when you’re paying.  The cashier can be a lot of help, but whatever you do don’t give your PIN to the cashier, no matter how helpful he or she may seem.  The cashier can walk you through the simple process, or you can try to go it on your own.  Here is what you can expect:

1.  You can usually swipe the card and start the process before all your items have been scanned.

2.  The machine will ask you to input your PIN.  You can either input your PIN or instead press “Cancel,” which should lead you to a screen that allows you to select the option to process the card as a credit card instead of debit.  This allows you to sign for the purchase instead of inputting a PIN.

3.  At least once you will be asked to confirm the amount by pressing “Yes” or “Okay.”

4.  If using a PIN, you’ll be asked if you want cash back, and if so how much you want.  Any money you receive as cash back is added to your total.

After this is all finished you’ll probably notice something on the screen that says “Authorizing” or “Please Wait.”  This occurs when the system is checking to make sure the amount is available in your account.  If the purchase is approved then the cashier will give you any cash back you requested as well as your receipt, and the transaction is complete.    

It is all much easier and quicker than writing a check, and once you get used to it the process will become as natural as paying with cash.