Debit cards

As the name implies this is not a credit card that you can pay your bill at the end of the month, this card takes the sale amount out of your account as soon as the sale is made.

Debit cards are convenient but they do have drawbacks. It is a lot more painful to resolve a problem with a purchase if the money is gone from your account (as with a debit card) than if it's just numbers on a piece of paper (as with a credit card). And if you lose a debit card, your whole account can be emptied with no recourse for you. You decide whether you want to take that risk.

Consumers in the know don't like debit cards because they offer less protection than credit cards in the event of a billing dispute.

A debit card soes have some very useful points.

• Obtaining a debit card is often easier than obtaining a credit card.
• Using a debit card instead of writing cheques saves you from showing identification or giving out personal information at the time of the transaction.

• Using a debit card frees you from carrying cash or a chequebook.

• Using a debit card means you no longer have to stock up on traveler's cheques or cash when you travel.

• Debit cards may be more readily accepted by merchants than cheques, especially in other countries wherever your card brand is accepted.

• The debit card is a quick, "pay now" product, giving you no grace period.

• Using a debit card may mean you have less protection than with a credit card purchase for items which are never delivered, are defective, or were misrepresented. But, as with credit cards, you may dispute unauthorized charges or other mistakes within 60 days. You should contact the card issuer if a problem cannot be resolved with the merchant.