Debit card 101 Published Aug. 11, 2006 By Kimberly Champagne 20th Fighter Wing Public Affairs SHAW AIR FORCE BASE, S.C. -- (Editor's note: This is the first in a credit series.) The first credit card was introduced in 1950; prior to that "cash and carry" was pretty much the rule for most purchases, said Jason Alderman, instructor for a major credit card company. In the late 1970s, the use of the automated teller machine became popular because people were spending their Friday lunch hour waiting in long bank lines to cash their paychecks. By the late 1990s, the debit card was majorly impacting how many people managed their finances and made purchases, said William Agboruche, Airman and Family Readiness Center Personal Finance Management Program manager at Shaw. "Treat your debit card like your credit card," said Doris Horton, compliance and fraud officer at Safe Federal Credit Union at Shaw. Debit cards are convenient and efficient, but require close management, Ms. Horton said. "The debit card is not the problem; many Airmen use the debit card and forget to deduct from their balance," said Mr. Agboruche. "Whenever it comes to your money, you always need to keep a close eye on your personal bottom line. With debit cards, keep these points in mind," he added. Airmen should be certain of their bank account balance so they don't spend more than available funds. Some debit cards have monthly or per-transaction fees, so it pays to comparison shop with many banks when opening a checking account. Guard your card and personal identification number closely -- never let anyone borrow it. Debit cards also carry an added level of security not available with cash or checks. Most debit card transactions made with a national network like Visa receive `zero liability' fraud protection. This means that if a debit card is ever lost or stolen and is reported promptly, the cardholder won't be responsible for any fraudulent purchases or cash withdrawals. The Federal Trade Commission's Web site (www.ftc.gov) and local banks have more details. The National Consumers League also has a helpful brochure on debit cards. Visit their Web site at www.practicalmoneyskills.com/resources. Remember that debit card transactions, just like checks, are drawn against the money you already have in your checking account. It's not a temporary loan from the bank to be repaid later, so it's a good reminder to live within your means and spend responsibly, said Ms. Horton.