When you discover a bank that lets you open a check account even though you are on the ChexSystems list, (or after you are erased from the list and find a good bank), you will need to understand how ATM and second chance checking debit cards work.  There is a difference but most people do not understand this.

If you have a debit card and personal identification number (PIN), you are able to use an Automated Teller Machine (ATM) to withdraw cash, make deposits, or transfer funds between different accounts.  Most ATMs will charge you a fee if you are not a member of that ATM network. You will also be charged if you are making a transaction in a remote location.

You can also make retail purchases with your debit card. You enter your PIN number or sign for the purchase. Some banks will charge their customers a fee for purchases made with a PIN using their debit card. Event though a debit card may look like a credit card, the difference is money for the purchase is immediately transferred from your account to the account of the store.  Also, when you use a debit card, you do not have the right to stop payment.  In all cases of dispute you will need to resolve the problem with the seller.

If you believe your card has been lost or stolen, you should immediately call the card issuer. Many companies have a toll-free number and are available on a 24-hour service so they are able to handle such emergencies.  Although federal law will limit the liability for any stolen credit card to $50, your liability for any unauthorized use of your ATM or debit card can be much greater. This depends on whether you report the lost card quickly enough.

In summary

1. If you report a missing debit card to the issuer before it is used, you will not be responsible for unauthorized withdrawals.
2. Your liability will be limited to $50 if you report the loss within two business days after you have worked out your debit card is in fact missing. The amount increases to $500 if you report it after two business days but before 60.
3. Unfortunately, in the rare event if you have not reported an unauthorized use of a debit or ATM card within 60 days after the mailing of your statement documenting the unauthorized use, you could end up losing any funds you had in your account prior to the loss or theft. Furthermore, you could be liable for any unused portion of your line of credit overdraft amounts.

Our advice is to check carefully the policies of your card issuer. Some offer more generous limits. Some simply refer to the fine print which will usually mean you are out of pocket.

So, if you are only looking for a second chance checking debit card that you can deposit and withdraw money, then it is best to get a prepaid debit card.  This is because a prepaid debit card is issued by banks, which means your money is FDIC insured up to $100,000 just like a checking account. Prepaid debit cards are a standard choice with consumers who have bad credit and problems with ChexSystems.

Click Here To Apply for our Recommended 2nd Chance Debit Card