Tips to Avoid Common Debit Card Fees in 2023

Using a debit card only gives you the benefit of accessibility and security in using and controlling your money. However, with your debit card, comes some other fees and charges. In this blog post, we will be discussing some of the most common debit card fees and sharing ways on how to avoid or minimize them for added savings for 2023.

You pay overdraft fees when the balance in your account falls below the actual amount you spend and ends up negative. Banks charge a healthy fee for every transaction that causes an overdraft, so to avoid paying these fees and avoid being levied significant charges, track your account balance regularly; know the pending transactions, and set up low-balance alerts for any instances where your balance drops below a particular threshold.

Tie your savings account to your checking account as an overdraft to cover overdrafts automatically.

You can opt out of overdraft protection. This would mean there is a chance that you could have some overdrafts declined so that you do not pay for overdraft fees, but of course, this could happen during a period when your accounts get significantly depleted.

ATM fees can quickly add up if you are not careful. The bank gets a little extra money for every ATM out-of-network, or several times drawn together. To avoid extra fees at ATM:

• Use of ATMs available in-network, or partner-owned ATMs that are free to use.
• Plan for withdrawal in such a way that you minimize the number of transactions.
• Withdraw the larger denominations less frequently so that you won't have to go to an ATM often.
• You may find useful to swap the usage of ATM services for cashback at retail stores for all your shopping requirements.

You'll pay foreign transaction fees when you use your debit card abroad. These fees typically take the form of a percentage of your transaction amount. To minimize this:

• Use a debit card that does not or rarely levies foreign transaction fees or the ones that charges very low fees.
• Inform your bank about your travel plans so you avoid declined transactions and surprise fees.
• Save on conversion charges by withdrawing cash at local ATMs in the local currency.
• Opt for mobile payment apps or credit cards with no foreign transaction fees whenever you can.

For one, there may be possibilities of losing your debit card or it may need to be replaced so you pay again for it. To save from replacement fees:

• Always secure and safeguard your debit card.
• Each lost or stolen card should be reported immediately to minimize the associated fees and liability.
• Select a bank that offers free or low-cost card replacements.

Also Read – (What is the difference between a PIN and a CVV number of a debit card?)

Debit cards are convenient and easy to use, but there are numerous fees that will be subtracted from your earnings. Don't let these charges nibble away at your cash using the advice that follows from the blog on avoiding common debit card fees in 2023. Know your costs. Stay one step ahead of a fee you did not know about- read your bank's terms and conditions and stay on top of their fee changes.