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What is a check card?

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Definition and Example of a Check Card

How Check Cards Work

Do I Need a Check Card?

Alternatives to Check Cards

Check Cards vs. Debit Cards

Advantages and Disadvantages of Check Cards

Definition and Example of a Check Card

A check card is a type of payment card linked to your checking account. When you use a check card, the amount of the purchase is deducted directly from your checking account.

The check card is a popular alternative for individuals who want to pay with a card but cannot obtain a credit card or do not wish to use one. Unlike a credit card, it is not a form of borrowing money. You do not need to pay a bill or interest on your purchases. It also does not contribute to building credit, as you are not borrowing anything to use it.

Alternative name: Debit Card

You can use a check card to buy things or pay bills. For example, you may be able to use your check card to pay an electricity bill online or to pay a medical bill. You can also use it when purchasing something either online or in-person. In all these cases, the amount will be deducted from your checking account.

How Check Cards Work

How you use a check card depends on whether you are making a purchase in-person, either as a “debit” or “credit” transaction, or online. You can also use a check card to withdraw cash from your checking account.

Note: When using a check card, you can only make purchases or withdraw cash up to the amount currently available in your checking account. If you try to use an amount greater than what is available in the account linked to the card, your purchase will be declined. You may also be charged for overdrawing the account.

Making an In-Person Payment

When using your check card in-person, you will be required to swipe it through a card reader. If your check card has a chip, you must insert it into the chip reader slot. Some card readers may also work by tapping the card on the device. You will be prompted to enter your Personal Identification Number (PIN), which is typically a four-digit number you set.

Note: The PIN you choose for your check card is similar to an authorization code. Make sure to keep it confidential so that no one else can use your card.

Once the transaction is processed, the amount is immediately withdrawn from your checking account.

Using the “Credit” Option with a Check Card

Check card payments can often be processed as “debit” or “credit” transactions. Some businesses may process every card as a credit transaction. Sometimes, you may be asked to choose whether you prefer a credit or debit transaction.

For a credit transaction, you will be asked to swipe or insert your card as usual, but you will need to sign a receipt instead of entering your PIN.

Even if your payment is processed as a credit transaction, the funds will be deducted directly from your checking account.

Making an Online Payment

You can use your check card to make payments online or over the phone. When prompted, you will need to either say or enter the information associated with your check card. This typically includes:

  • Cardholder name
  • Card number
  • Expiration date
  • Zip code associated with your checking account

Sometimes, you may also need to provide the card type (such as Visa or MasterCard) and the card security code.

The security code, also known as “CVV code” or “Card Identification Number (CID)”, is different from your PIN. On most check cards, the security code is a three-digit number printed on the signature panel on the back of the card. Some cards, such as American Express, have a four-digit security code printed on the front of the card, above the main card number.

Note:

When using your debit card for payments online or over the phone, the transaction is processed as “credit” rather than “debit.” You do not need to enter your PIN for this type of transaction.

Using your check card to get cash

You can also use your check card to withdraw cash from your checking account at the bank or from ATMs.

You can withdraw cash using your check card at the bank branch where your checking account is located. Provide your check card to the teller and tell them the amount you wish to withdraw. They will either process the transaction on your behalf or ask you to use a card reader to enter your information.

To withdraw cash from an ATM, insert your check card into the designated slot and follow the on-screen instructions to select the amount you want to withdraw.

Note: In most cases, you can withdraw cash from any ATM. However, you may be charged a fee for using an ATM at a bank where you are not a member, depending on the terms of your checking account.

Note: Check cards often also allow you to use the “get cash” option to withdraw cash from your account while making a purchase. You can choose this option after entering your PIN on the card reader. In most cases, you can only get cash if you are making a debit transaction rather than a credit transaction.

Do I need a check card?

Not everyone needs a check card, but it is good to have if you have a checking account. Check cards allow you to:

  • Access money in your checking account easily
  • Withdraw cash when needed
  • Make online payments
  • Avoid carrying large amounts of cash

Check cards are a good alternative to using personal checks. Many businesses no longer accept paper checks, but most will accept check cards.

Businesses that do not accept check cards are typically the same ones that do not accept credit cards. Generally, these places are cash-only establishments that seek to avoid the fees that merchants must pay to use debit and credit cards.

Alternatives to check cards

If you do not have (or do not wish to use) a check card, there are other payment alternatives available:

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