News Release

Contact Information

FOR IMMEDIATE RELEASE April 29, 2003

Contact Rebecca Reid at 202-342-2922

Debit Card Becoming Card of Choice for Good Reasons;

Americans for Consumer Education and Competition Offer Budget Advice

Debit cards are fast becoming the card of choice for savvy consumers and for very good reasons, according to Susan Molinari, national chairperson of Americans for Consumer Education and Competition, an advocacy group fostering consumer education and financial literacy. With a debit card, you simply can’t spend what you don’t have.

So what exactly is a debit card, and how does it work? It combines the easy usage of a credit card with the budget-tracking of a checkbook. It lets consumers pay for purchases directly from their checking accounts. They spend only what they have; debts aren’t accumulated that have to be repaid later.

“And that’s what makes the debit card such a useful budgeting tool,” says Molinari, a former Congresswoman who served on the House Budget and Education Committee. “A debit card is tied to your checking account. When you use a debit card, it acts as a ‘check.’ The money for the item you bought is deducted directly from your checking account at the time of purchase. Unlike a credit card, you won’t receive a bill later,” Molinari continues.

By keeping a daily record of your money, debit cards enable you to be much more conscious of what you’re spending, and what you’re spending it on. “Debit cards tend to inhibit impulse buys because you know that once the money is spent, it’s gone,” advises Molinari. See www.acecusa.org.

Debit cards also offer consumers protection that just isn’t offered with cash and checks: zero liability fraud protection and dispute resolution assistance — in case there is a problem with a purchase. And a great reason to choose the debit card to help you stay in budget is that it’s accepted everywhere credit cards are accepted.

So if you’ve ever found yourself at the end of the month wondering where all the money went, take heart. With a little commitment to sticking to a budget and a wise budgeting tool like a debit card, you can avoid overspending and revive your cash flow.

For more information on the benefits of debit cards visit ACEC’s web site at www.acecusa.org.

Note to Editors:
Interviews with Ms. Molinari are available upon request. For additional information contact: Rebecca Reid at reidconsulting@comcast.net or call 202-342-2922.