When you use a MasterCard debit card, you enjoy plenty of benefits. However, you do need to take few steps to protect your new account. Remember that a debit card is like a blank check, so you need to guard the card and the account number carefully against loss or misuse. A thief can clear out the bank account that is linked to your MasterCard Debit Card before you even know your card is missing.

If your debit card is lost or stolen, or if you think someone is using it fraudulently, call your bank immediately. Follow the phone call with a letter.

Thieves don’t even need your card. As long as they have your name and card number, they can order goods by mail or over the telephone. They can wipe out your bank account before you know the card is missing, or even when you still have the card in your pocket. Protect your debit card by holding on to your debit card receipts and check them against your bank statement each month.

Memorize your PIN but don’t keep it with your card. Don’t choose one that a smart thief could figure out, like your phone number, address, birthday or part of your Social Security number. Never give your PIN to anyone.

The need to protect your debit card is reduced by the amazing “Zero Liability” promise made by MasterCard for all debit card holders. Here’s how MasterCard puts it:

Have peace of mind knowing that the financial institution that issued your U.S. MasterCard card won’t hold you responsible for “unauthorized purchases.” Zero liability applies to purchases made in the store, over the telephone or made online. As a MasterCard cardholder you will not be responsible in the event of unauthorized purchases provided that the following preconditions are met:

* Your account is in good standing.
* You have exercised reasonable care in safeguarding your card from any unauthorized use**. Unauthorized use means that you did not provide, directly, by implication or otherwise, the right to use your card and you received no benefit from the “unauthorized” purchase.
(**Failure to register certain cards will be considered as not safeguarding your card.)
* You have not reported two or more unauthorized events in the past 12 months.

Zero Liability does not apply to MasterCard cards
(i) issued for commercial, business or agricultural purposes, except for MasterCard commercial cards used for small businesses as listed on www.mastercardbusiness.com; or
(ii) if a PIN for a debit transaction is used for the unauthorized purchase.

MasterCard Debit Cards have LOTs of great advantages. Here are a few of the benefits you may enjoy:

• MasterCard Debit Cards are easier to get than a credit card. (there is usually no credit approval process).
• You don’t have to get your check approved or show identification at stores. (you can just swipe your debit card at the point of sale to buy something!)
• You don’t have to carry cash, a checkbook or traveler’s checks.
• MasterCard Debit cards are more readily accepted than checks, especially when you are traveling. (there are MILLIONs of merchants that accept MasterCard payment cards).
• You don’t pay interest charges.

Because checkout lines move faster, storeowners love debit cards. They don’t worry about bounced checks or need to take checks or cash to the bank. Debit card processing fees for the merchant are generally lower than credit card fees.

The common attribute of all ATM and debit card transactions is that the transaction is directly linked to the consumer’s bank account—that is, the amount of a transaction is deducted (debited) against the funds in that account.

An ATM transaction typically involves withdrawing cash from an ATM machine. The consumer presents an ATM card, which is issued by the bank holding his or her checking account, at an ATM terminal, which may or may not be owned by the same bank. The consumer enters a personal identification number (PIN) to verify identity, the checking
account is checked for adequate funds, and if everything is satisfactory, cash is issued. All of this is routed across one or more ATM networks.

A debit card transaction involves the purchase of a good or service. In this case, the consumer presents a debit card (which again was issued by the bank holding the checking account) to a merchant, and the consumer either enters a PIN (online debit) or signs a receipt (offline debit) to verify the consumer’s identity. The merchant, in turn, sends information about the transaction across one or more debit card networks, and if the transaction is approved, the consumer receives the good or service and the checking account is correspondingly
debited. The merchant is reimbursed by a credit to its bank account.

An ATM card is typically a dual ATM/debit card that can be used for both ATM and debit card transactions. Many ATM/debit cards offer the consumer both types of debit card transactions, online and offline.
ATM and debit card transactions involve a number of fees. In ATM transactions, the consumer may pay a foreign fee to his or her bank if the ATM used is not owned by his or her bank. The consumer may also pay a surcharge fee to the ATM owner. The issuing bank pays an interchange fee to the ATM owner for the consumer’s use of that ATM and also pays a switch fee to the ATM network for transmitting the transaction information.

In debit card transactions, the bank that issued the card receives an interchange fee from the merchant’s bank and may also receive a PIN fee from the consumer if it is an online transaction. The merchant pays its bank a discount fee. Both the issuing bank and the merchant bank, depending on routing arrangements, pay switch fees. Fees are also paid
to third-party service providers when their services are used.