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And then some fool has to ruin it all by paying with cash. The line congests, the musica cuts, people stare. Oh, the humiliation.
It’s not that far off from reality, as American consumers shift from paper to plastic, relying more on cards that draw money from bank accounts.
Check use declined by 10 percent while debit card use tripled from 2000 to 2005, according to an industry research publication called the Nilson Report. If the trend continues, debit cards will outpace checks by 2010.
Debit cards draw money directly from your bank account — unlike credit cards, which send you a bill at the end of the month and charge interest.
But just because it’s called a debit card doesn’t mean you have to use it that way when the cashier asks “debit or credit?”
Answering “credit” will save you money, hassle and possibly your identity.
There are two ways to secure a debit card transaction: a signature or a PIN (personal identification number). If you answer “debit,” you’ll be asked to enter your PIN. That could result in a fee — anywhere from 25 cents to $1 per transaction, according to Consumer Reports’ Money Advisor.
Answer “credit” and the fee will be charged to the merchant.
“You should still be able to hit credit and still be able to sign, even if a store asks you to put in a pin,” said Sonja Shugart, vice president of personal banking at Winona National Bank.
With signature transactions, there’s less chance for identity theft, Shugart said. If thieves get your PIN, it’s a lot easier for them to empty your account.
Don’t use your Social Security number or birth date, and never write your PIN on the card. Shugart suggests changing it once a year.
A paperless future?
Winona National and Merchant’s both expect debit card use to continue growing over the next decade as customers become more electronically motivated and tech savvy.
More perk programs usually associated with credit cards will allow debit card users to earn points, air miles or cash back. Wells Fargo debit cards already have this feature.
While many industry experts speculate it’s a matter of time before writing checks are a thing of the past, local banks say not in this lifetime.
“People have said that checks are going to go away,” Bronk said. “I don’t believe it’s going to happen.”
Contact reporter Amber Dulek at amber.dulek@lee.net or 507-453-3513.
yarnivek wrote on Dec 23, 2007 7:50 PM: