Debit cards can be convenient--If you know the rules

About 25.5 million debit cards were in circulation last year, up 40% from 1993, according to industry reports. The use of debit cards is convenient, but it can be an expensive alternative to checks, especially if the card has a monthly or annual fee. There are 2 categories of problems with the use of debit cards: 1. how to prove liability for fraud and error, and 2. confusion about the cards. Consumers might well be confused, especially because there are 2 distinct types of debit transactions - off-line deferred debit and on-line direct debit. An advantage to off-line debit cards is that, like a check, the cards have a "float" of 1 to 3 days. With the on-line debit card, consumers would be informed that they do not have sufficient funds to cover a purchase before the transaction is completed.