The 5 Biggest Debit Card Myths

Your debit card is more than just a piece of plastic—it’s a secure tool that uses your checking account for everyday purchases.

There’s often confusion about how debit cards work and what makes them different from credit cards. Let’s debunk the most common myths so you can confidently use your debit card to manage your money.

Myth #1: Debit Cards Aren’t Secure

One of the most common misconceptions about debit cards is they aren’t safe. However, today’s cards have contactless EMV chips, which encrypt every transaction with a unique code. Plus, your personal identification number (PIN) adds extra security to help prevent unauthorized usage.

If you ever misplace your debit card, you can freeze it without losing access to your checking account. Many financial institutions also monitor your card for suspicious activity and alert you to fraud.

Myth #2: Debit Cards Can Affect My Credit Score

Debit cards don’t impact your credit score because you’re not borrowing money. Credit scores track how you manage borrowed money from things like credit cards and loans. Since a debit card uses money from your checking account, those transactions aren’t reported to credit bureaus. Even when you choose "credit" at checkout, you’re still using your own money, not building credit. Most financial institutions provide a debit card with your checking account, available to use.

Myth #3: Debit Cards Aren’t Good for Travel

Debit cards are widely accepted, which makes your card a great travel companion. Your debit card offers you quick access to local currency and cash from ATMs worldwide. Many small businesses even prefer that customers use debit cards so they can avoid paying credit card processing fees.

While debit cards are great for travel purchases, make sure you’re notifying your financial institution before traveling overseas. This can keep them from accidentally flagging your legitimate travel purchases as potentially fraudulent activity. Often, it’s as simple as toggling a travel setting in your online banking profile.

Myth #4: Debit Cards Will Land Me in Debt

Debit cards can help prevent overspending since you’re using money you already have in your checking account. There’s less temptation to borrow more than you can afford to pay back. Just keep an eye on your balance to avoid overdraft fees and be aware of any fees associated with your checking account.

Debit card transactions show up instantly in your account, making it easy to track your spending through a mobile app or online banking. Many debit cards allow you to set up alerts that notify you when your balance hits a certain amount to help you stay on budget.

Myth #5: Debit Cards Don’t Have Any Perks or Rewards

Debit card rewards and programs may not be as common as they are with credit cards, but they are out there. Some debit cards even come with benefits like travel insurance, roadside assistance and identity theft protection.

When Would I Use a Debit Card?

Your debit card makes it easy to manage everyday spending and track your money in real time. You can use it for:

• Everyday purchases like groceries and gas.
• Shopping online and bill payments.
• Getting cash from ATMs.
• Shopping local businesses that prefer debit to credit.
• Avoiding credit card surcharges.
• Times you want to stick to a specific budget.

Make the Most of Your Navy Federal Credit Union Debit Card

A debit card puts you in control of your money with secure technology, worldwide acceptance and helpful features that make everyday spending easier. Whether you're shopping locally, traveling abroad or managing your monthly budget, you can make purchases confidently with the convenience of a debit card.

Don’t have a Navy Federal Debit Card? Check your eligibility and open a checking account today.