All you need to know about Debit Card Insurance (2024)

FAQs

How does debit card insurance work? ›

Debit card insurance coverage is a type of insurance policy that provides coverage in case of loss, misuse, or theft of your debit card. The coverages are usually provided by banks and financial institutions to their customers who hold a debit card from them.

Debit Card Overdraft Coverage

Choose how you want the bank to handle debit card purchases and ATM transactions when you don't have enough money in the bank to cover them. These transactions are paid at our discretion and overdraft fees apply.

You don't get protection from Section 75 if you buy goods on a debit card – this is because they are not part of a credit agreement. However, you might be able to make a claim for a refund under Chargeback, which we cover in a section below.

How to use my Healthcare debit card. You use your FSA healthcare card and spend FSA funds to pay deductibles and copayments, but not for insurance premiums. Your Healthcare Flexible Spending Account (FSA) debit card* makes it quick and easy to pay for eligible healthcare expenses.

Under federal law, your liability for unauthorized transactions on your debit card depends on how quickly you report the fraud. If you report the fraud within two business days, your liability is limited to $50. If you report it within 60 days, your liability is limited to $500.

Debit life insurance is a type of industrial life insurance—that is, life insurance purchased primarily by people with low income levels under which the premium is collected weekly, biweekly, or monthly.

In addition to their basic functionality, many debit cards come with additional features and benefits, such as complimentary insurance coverage. It may include benefits like travel insurance, purchase protection, and accidental death and disability coverage.

What is Section 75? It's part of the Consumer Credit Act 1974 that means your credit card provider is jointly and severally responsible for any breach of contract or misrepresentation by a retailer or trader.

Debit cards and chargeback

Debit card payments and purchases aren't covered by section 75 of the Consumer Credit Act. But if you don't get something you have paid for by debit card, and the firm is refusing to refund you, you can ask your bank to 'reverse the transaction' and get your money back via chargeback.

Debit cards let you buy things without carrying cash. You can use your debit card in most stores to pay for something. You just swipe the card and enter your PIN number on a key pad. Debit cards take money out of your checking account immediately.

What does a healthy benefit card cover? ›

"You can use your benefits to purchase OTC products including allergy medication, cough drops, first aid supplies, oral care, pain relievers, vitamins, and more," reads the Health Benefits website. Certain items such as soda, candy, chips, and other junk foods are usually not eligible for purchase with the card.

Most health plans accept a credit card for the first month's premium payment and then require customers to pay monthly with a check or an electronic funds transfer from a checking account.

Debit cards are as vulnerable to theft as credit cards and offer limited fraud protection. Depending on how soon you report the fraud, you could be responsible for up to $50 in unauthorized transactions – or the full amount. Learn about debit card fraud protection and what you can do to minimize your liability.

They're faster than writing a check and are widely accepted by retailers. Debit cards are especially convenient if you need to withdraw cash from an ATM or want to get cash back when you make a purchase at a store. They typically don't have any annual fees.

If you decide not to pay your insurance premium by credit card, you can usually pay online with a debit card, which is like paying by check but faster. Depending on your insurer and situation, other online payment methods include texting, PayPal, electronic funds transfer (EFT), and online checks.

You only need to carry these cards in your wallet if you're heading to an appointment where you might need them. Even if you wind up in the emergency room without your insurance card, the hospital will still treat you; they'll just get your insurance information later.