How To Apply For A Debit Card When You’re Under 18
While you’re not yet an adult, debit cards are a convenient method to learn about money management. Like a result, you won’t have to worry about accruing interest or accruing debt as you would with a credit card since the money are instantly removed from the account linked to the debit card.
Furthermore, the long-term repercussions of using a debit card while you are young and still learning how to handle your funds will not result in credit difficulties, which is something you want to maintain for future reasons.
Requires the signature of a second party
To be eligible for a debit card, you must first create a checking or savings account. Each time you make a purchase with your debit card, the money is withdrawn immediately from your bank account.
Customers under the age of 18 must have a parent co-sign their application for a checking or savings account, according to state law. Given that a parent is required to co-sign, the parent is ultimately liable if you overdraw your account or if fees are charged for which there are no money to pay.
Requirements for Opening a Bank Account
A checking or savings account with most banks must be opened in person, with your parent present. Your driver’s license or another kind of government-issued documentation, such as a birth certificate or passport, should be brought along. Along with your identification, you must bring your social security number with you.
The presence of evidence of residence in the United States, such as a passport, identification card, or birth certificate, is required by certain banks. Make a modest deposit to begin the process of opening the account, if possible. Check with the bank ahead of time to see what documents they want for processing. In the case of U.S. Bank, a $25 starting deposit is required, which may be paid with cash, cheque, or a credit card issued to you by your parents.
How to Apply for a Debit Card When You’re Under 18
Plans that are pre-paid
If you do not want to create a checking or savings account, prepaid debit cards are another choice. They are accessible from banks and shops and are pre-loaded with a set amount of money that may be used to make purchases later.
There are certain prepaid cards that are just good for a single transaction, but you can also purchase reloadable prepaid cards, which enable you to put additional money onto them. This has the drawback that if you do not have enough cash on your card to make a transaction, you will not be able to use overdraft protection to cover the cost of it. Instead, you’ll have to reload the card or find another means to complete your transaction.
Your Name Please Fill In the Blanks
If a kid’s name has been added to a parent’s checking or savings account, the parent may then issue the youngster a debit card linked to that account. Parents, on the other hand, must keep a close eye on the account since any transactions or purchases made may cause the balance to drop to the point where there isn’t enough money to pay bills or make other purchases.
As a precaution, always check with your parents to see how much money you may spend with the debit card to ensure that you don’t overspend and create difficulties with their bank.
Can a Company Use My Debit Card Without My Consent?
Despite the fact that businesses are not permitted to charge your debit card without your permission, this is an often encountered issue.
Debit cards are stolen — or their card information are taken and copied on another card — and then used to make fraudulent purchases on other websites. In order to get access to debit card information, fraudulent telemarketers may employ misleading tactics to enroll unwary clients up for recurring payments.
Federal banking laws provide a limit on the amount of money that may be lost as a result of these scams.
Federal Restrictions
As a result of federal banking laws, if you do not tell your bank within two days of finding the fraudulent transaction, you may be responsible for damages of up to $50 in the case of a fraudulent charge. If you fail to tell your bank during the two-day period, you might face a fine of up to $500.
As a result of the investigation, banks may take up to ten days to repay your money. It is their responsibility to repay your money if they need further time to investigate; but, they may take it back if the inquiry reveals that you were at fault for the loss.
Scams using automatic debits
Telemarketers may phone your house and tell you that you have won a free vacation, or they may attempt to sell you a service to help you improve your credit. It is possible that they may want your debit card details after a lengthy telephone chat in order to process the award.
You have the option of authorizing a modest, one-time fee. It is possible that the fraudsters would continue to charge you on a monthly basis for a service that you do not desire. If you become aware that a firm is invoicing you without your permission, inform your financial institution immediately.
Cancellation in the Written Form
If you have permitted a firm to make regular withdrawals from your debit card account but you no longer need their services, you may be able to cancel the authorization. Sometimes the provider may continue to charge your account even after you have cancelled the service.
If this occurs, you must inform the company in writing that you no longer want it to charge you for the services. “You authorized the merchant to debit your account in writing by providing written authorisation to the merchant.
Because the bank was not a party to that arrangement, they will be unable to terminate it on your behalf if you choose. You must tell the merchant to stop debiting your account; else, your account will be closed “According to the United States Department of Treasury’s website.
Cards that have been misplaced
If your card is lost or stolen, your culpability is the same as it would be if a fraudster utilized the card’s information to make a monetary gain without having the card in his or her possession. According to federal law, if you report a credit or debit card as lost or stolen before it is used, you cannot be held accountable for any costs.
Provided your card is used without your permission, your loss is limited to $50 if you report the illegal transactions within two days of becoming aware of them.
Does it make any difference if I give someone a temporary authorization to use my credit card?
Adding someone as a temporary user to your credit card is a typical feature offered by most credit card companies.
Typically, all you have to do is phone the service provider’s customer support number and present them with the name of the authorized user on their account. There are advantages and disadvantages to taking this action.
The process of removing someone from your account is significantly simpler when you add them as an authorized user rather as a joint account holder. However, lending your card out on the spur of the moment is not a good idea.
Advantages and disadvantages
Sometimes parents utilize a temporary authorisation as a means of assisting an adolescent or young adult in the establishment of positive credit. You should inquire with your service provider about whether credit consumption is reported for both you and the temporary user.
Most firms additionally issue a unique card number so that you can keep track of how much money the authorized user spends. This function is related to the inherent risk associated with approving another user, which is the possibility that he would charge an excessive amount to your credit card. An individual who uses the property, as opposed to a joint owner, is not obligated to pay back the loan.
Card Loan on an Informal Basis
Especially taking these formal steps to authorize a user on your card for a certain amount of time, it is typically recommended that you do not share your card with anybody else, according to a September 2013 story in “Fox Business.” Technically, doing so constitutes a breach of your agreement with the service provider. But most significantly, you are responsible for any costs that the user accrues while using your service.
Is it possible to find out who stole my credit card?
It is one of the benefits and downsides of using a credit card to make purchases because it leaves a paper trail of your transactions.
This enables your credit card provider to send you a bill for the charges you make on your card as a result of your actions. It also allows the credit card company to track out the location where someone who stole your credit card used it, perhaps making it simpler to apprehend that individual.
Advice
Once a card is used by the person who stole it, credit card companies are able to find out where the card was last used. In most circumstances, this is only possible after the card is used by the person who stole it. The authorisation procedure for credit cards assists banks in tracking this. However, by the time law enforcement comes, the individual may already be out of sight.
Approvals for credit cards
The authorization of a credit card offers an opportunity for tracking to be performed. You or a fraudster deliver your credit card to a shop clerk, who then uses a card reader to transmit the information on it to a credit card processing business. A representative from that firm will contact your credit card provider to ensure that your card is valid and that you have sufficient funds to pay the transaction.
If it does, the charge is accepted, and you – or the criminal – are the ones who get the goods. During this process, information about the retailer, its location, and the amount paid is transmitted on to your credit card issuer, who then processes the transaction. It will be able to track where the card has been used and create a history as a result.
Users of “tracking” cards
While your bank is able to trace down stolen cards, the tracking system is not without flaws. In most cases, it can only track the card if it is really used. Furthermore, since customers often pay when they are on their way out of a retail shop, it is fair to suppose that they would have left by the time law enforcement could arrive.
For their part, businesses and card issuers may utilize transaction information to determine the precise moment a stolen card was used and to locate video footage of the individual who used the stolen card from the store’s security system, among other things.
How Do Cards Become Stolen?
Card thieves do not need to physically grab your card in order to steal it. They may also make use of the carbon copies that were included with the paper slips that were used to record actual card impressions. In restaurants, waiters would jot down the information on your card while running it for you to avoid having to repeat the process.
Theft has now taken a digital turn. In addition, waiters may conceal tiny card-skimming devices in their aprons, thieves can attach readers to petrol pumps, and larger-scale cyber criminals can steal millions of credit card details by hacking into company systems.
You’re a Victim of Card Theft
If your card is taken, it shouldn’t make a difference to you whether or not police are able to apprehend the perpetrator.
According to federal law, your responsibility for fraudulent transactions is limited to $50 as long as you report the theft quickly. If your card information is taken or you notify the theft before your card is used, you have no liability at all. Some credit card companies may provide you with even more security than this.
