If your debit card has a chip on one side, you will need to insert your chip into the bottom gap in the POS machine for the transaction to process. Leave your debit card in the machine for the duration of the transaction. The machine will prompt you when to remove your card at the end of the transaction.
Some merchants are able to select the “Debit” option through their system so you may not see this option in the POS machine. You may instead be prompted to move on to accepting the transaction.
For example, if you were purchasing items for $35. 52, the POS machine may ask, “Do you accept the amount of $35. 52?” If the amount looks correct, you would then choose the approve button on the POS machine.
If you do not have a “Savings” account set up through your banking institution for your debit card, you may not be shown this option.
Make sure you enter your PIN correctly into the keypad, as the transaction may be cancelled if you enter it incorrectly. You should use your hand to cover the screen and keypad as you input your PIN so it cannot be seen by others. Keep in mind some banking institutions will charge a fee of 0. 50 cents to $1 for using your PIN at the register. You can avoid this fee by selecting the “credit” option, if you have a debit/credit card. You will then use the debit card like a credit card and sign for the transaction instead of putting in your PIN. [4] X Research source
Keep in mind some retailers may charge a small fee for giving you cashback. Always ask the retailer if there are any fees before you use the cashback option.
If the transaction is approved, the POS machine will produce a receipt for the vendor or seller. You can also get a copy of your receipt for your records. If the transaction does not go through due to insufficient funds in your account or you end up cancelling the transaction for some reason, you will get a “Not Approved” or “Incomplete” notice. You will then need to pay for the transaction with another form of payment or not make the purchase.
Depending on your bank, you may have the option of overdrawing your account within a certain amount for a fee. Or, your bank may not allow you to overdraw your account at all and will simply decline the transaction if you try to spend more money than you have. Your bank may give you the option to set up alerts through online banking to let you know when your balance is low. This way, you can check your account more frequently and be aware of how much money you have to spend in your account. Make sure to know your debit card transaction limit, as there’s usually one set up. If you want to spend over the transaction or daily limit, it’s usually a good idea to notify your bank to have the purchase approved.
Your bank may charge you a fee for entering your PIN to complete a transaction rather than signing your name. You may also be charged if you overdraw your account using your debit card. This is similar to what happens when you write a check that “bounces” or does not go through. You may be charged a small fee if you use an ATM machine that is not operated by your financial institution. These fees are usually around $2-$4 per a transaction.
Many merchants use “holds” to make sure you have enough funds to pay for a purchase. Often, your debit account may be held when you reserve a hotel room using your debit card, or when you use your debit card to pay for gas at the gas station. For example, once you make a gas payment at the pump, the gas station will create two transactions. The first transaction will be to get approval from your bank for an estimated purchase amount. The second will be for the actual amount of the purchase. The first transaction must go through and be cancelled by your bank within 48 hours for the hold on that amount to be lifted from your account. Then, the second transaction will be processed.
It may also be safer, and more cost efficient, to use ATMs provided by your banking institution. You should be able to use ATMs at your banking institution free of charge to take out cash. Often ATMs at your bank are well maintained and secured from theft or fraud.
You should also only give out your bank account information over the phone or online to individuals that you know well and trust. Do not give out this information to strangers as this could lead to theft, fraud, or a scam. Your bank will only ask you for your bank account information over the phone or in person. You should be suspicious of email or text messages from your “bank” requesting personal banking information.
Your bank will likely put a hold on your card and conduct an investigation into the theft or fraud. Once the investigation is over, they may decide to reimburse you for the full amount of the theft or fraud. Notify your bank immediately if you don’t recognize a debit charge in your account as well.
