How to Start Your Children with Using a Debit Card

It is a good idea to start Your teenage children with a debit card specially if the youngster already has a checking or savings account. Giving him a standard credit card makes sense as they have already been made used to maintaining a bank account. Just as they would have kept track of the financial transactions into savings account, they are more likely to be responsible with the usage of a debit card.
The advantage of using a debit card is also that the youngster cannot go beyond the amount of money present it is account. Unlike a credit card the teenager can only use the amount of money that is present in his account and not take money on credit. However overdrafts can still happen which can result in extra fees. The fair credit billing act has slightly different rules for debit card fraud or theft. If the person reports the card missing before the thief is able to make any transactions then the debit card issuer can’t hold you liable for any charges. If you report the loss within two working days you’ll be responsible for only $50 of charges. If you do not report the loss within 60 days you can be held liable for $500 of the fraudulent transactions.
For this reason you should keep track of the debit card and parents should insist that the teenager check your account regularly to make sure that all transactions are in order. However, certain debit cards from major card issuers like Visa and MasterCard carried the same fraud protections as credit cards with zero liability.