Debit Card Usage and You

Click here for an article about the future of debit card use.

The history of debit cards is an interesting one. Debit cards helped change the way people
used money and bank accounts. Debit cards are used to pay for purchases at
stores and other locations around the world. A debit card works by debiting the
money from your checking account. For many people debit cards have taken the
place of cash and checks. However, debit cards are still a relatively new
banking tool.

Credit cards paved the way for debit cards. Many people
used credit cards to pay for transactions. This also put in place the
infrastructure that debit cards needed to be practical as a method of payment. The First National
Bank of Seattle issued the first debit card to business executives with large
savings accounts in 1978. These cards acted like a check signature or a
guarantee card, where the bank promised the funds would cover the
transaction without the customer needing a check to complete the transaction.
The bank only issued debit cards to those customers who had a long history with
the bank and were in good standing, because like a check, the funds were not immediately
removed from the account.

In 1984 Landmark created the first nationwide debit
system, using ATMs and other networks that allowed debit cards to be used
nationwide. This allowed the smaller banking systems within states to connect
with banks systems outside of states. As technology improved the debit cards moved to a system that was able to directly debit the money from a checking account. When this happened the debit cards became
available to more and more consumers. These types of debit cards may have the
Plus symbol or other similar symbols on them. However many banks will also use
the Visa or MasterCard symbol for a direct debit card because they are accepted
at so many different places around the country.

In 1998 debit card transactions first outnumbered the use of checks around the world. This
number has continued to grow over time. Debit cards are now commonly used for
most transactions at stores in the United States. Debit cards are more
convenient to use than a check. Debit cards speed up transactions at stores.
Additionally debit cards are safer than carrying cash, because banks can stop
fraudulent purchases and consumers are not held liable for purchases made when
the card is stolen. Debit cards have made banking a much easier process for
many people.

In the future transactions will continue to move away from cash and check. Debit cards may be
left behind as well as banks move to using one card that you can quickly scan
at a variety of locations. This will speed up transactions as well as virtually
eliminate the need for cash in the future. Over time the history of debit cards
may be one step to moving to a completely cashless system.

At American 1 we have not raised any fees for
debit cards or checking accounts.

Another reason why – American 1 is The best way to bank.

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