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Debit cards are an alternative to prepaid credit cards to
help limit and control your spending. Since debit card holders
usually are provided with a monthly statement and therefore
get a good overview and summary of purchases, they might be
preferred as a better budgeting and credit management tool
to a prepaid credit card.
The Electronic Funds Transfer Act limits your liability for
unauthorized debits to $50 if you report them within two days
of discovery, and then jumps to $500 if you file your report
between three and 60 days. You could be fully liable for the
loss from your checking and overdraft accounts if you not
report within 60 days.Protections is offered by many banks
by a zero liability if the problems are reported within a
certain time. However, some banks offer zero liability policies
that protect you from any loss if you report the problem within
a certain time.
Some banks and card issuers have reward programs for debit
cards in a similar way as for credit cards. However, rewards
for debit cards tend to be lower than for reward credit cards.
Roughly the rewards for reward debit cards to be half of
the rewards from reward credit cards, but you should compare
the programs in detail.
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