Use your debit card for one of these expenses, and you could risk your bank account balance, your credit score or even identity fraud.
A debit card is a lot like cash, because transactions are instantaneous. The minute you check out is essentially the minute that money leaves your bank account.
Using debit cards can be risky, too. They don’t offer a lot of financial protection and are more attractive to thieves in certain situations.
For these reasons and others, sometimes you’re better offer using a credit card or cold, hard cash. Here are nine examples:
1. Online purchases
It’s safer to pay with a credit card when shopping online, according to the U.S. Federal Trade Commission (FTC).
If a cybercriminal intercepts your debit card number, they can immediately drain your account.
Credit cards come with more protection. For example, as we explain in “7 Ways to Guard Your Wallet — and Identity — When Shopping Online,” credit card transactions are protected under the Fair Credit Billing Act:
“This federal law provides you certain consumer protections, like the ability to dispute billing errors and to withhold payment while your creditor investigates the disputed charges. Perhaps more importantly, the law generally limits your responsibility for unauthorized credit card charges to $50.”
- Latest Posts