While handy, debit cards need to used carefully: report
Using a debit card might seem like a better option than cash or credit, but there are a few risks involved, warns Consumer Reports in the April issue of its ShopSmart magazine.
“Debit cards are sneaky – they are extremely convenient but can get you into a lot of trouble if your information winds up in the wrong hands,” said Lisa Lee Freeman, editor-in-chief of ShopSmart. “Some simple precautions can save you a lot of trouble and protect you and your account from danger.”
Here are five common areas where things can go wrong, CR warns.
Don’t take your debit card on trips. Many credit cards come with some level of travel insurance and auto-rental insurance. They may also come with concierge services that could help you out in sticky situations.
Don’t use a debit card if you’re worried about getting ripped off. Your liability for fraudulent charges on a debit card can be greater than it is for a credit card. With a credit card, you’re only responsible for a small amout in unauthorized purchases. But with a debit card, you can lose up to $500 if you don’t report the theft or loss of your card or PIN within two business days of discovering the problem.
Don’t rely on a debit card if you want to raise your credit score. When you use debit cards, you’re not building a credit history. But well-managed credit cards can help boost scores.
Don’t use your debit card if you want to earn money on purchases. A recent federal law cut the amount that banks can make on debit-card transactions, so they scaled back their rewards. If you have a good cash-back or rewards credit card, use that instead.
If you want a few real-life horror stories, check these case studies from The Ombudsman for Banking Services and Investments.
Have you had debit card problems in the past? How were they resolved?
By Gordon Powers, MSN Money
Posted by: Daniel | Mar 14, 2022 2:58:17 PM
But remember to pay the balance off in full.
Posted by: heather | Mar 15, 2022 9:44:38 AM
Actually i have a debit card and i carry it all the time with me and i watch carefully what i get in the stores.And if i think they overcharged me you know i'm going to tell them right away.But in retrospect i think debit cards are convenient and good to have if you don't go on trips to the US.But if you don't agree don't hesitate to tell me what ya think i can take the heat believe me i can.
Posted by: Steve | Mar 15, 2022 10:16:26 AM
I see different cards for different purchases and different reasons. Do what you can within your means, and use everything to your advantage and not the banks. Spend what you have and earn points, rewards on your credit cards, but like someone else posted make sure you pay off your credit card asap otherwise who really is getting the 'rewards'? you, or the financial institution? Food for thought. Being smart is the new cool, or was it cool all along.
Just protect your debit and credit from fraud. Period, prevention, prevention.
Posted by: Trina | Mar 15, 2022 6:29:05 PM
Sounds like an add for credit card promotion....credit cards/debit cards....Coke/Pepsi....
Posted by: Andrew | Mar 15, 2022 8:28:18 PM
Credit cards cost too much. Plus, they're hard to get. With Debit, you don't need insurance, nor do you get spam calls from your own bank. It's unfortunate that stores hardly accept debit online. Retail sucks.
I know others have different opinions. Mine is due to my experience with both, and how I can be helped best.
Posted by: ray larder | Mar 15, 2022 9:38:33 PM
I don't have any credit cards or debit cards, if i don't have the cash i don't buy.
Mortgage on a house, never had one, just sold the house for $276,000.
You to can do this, just save about $30,000 to get the foundation in and the place framed and you wii be surprized how the rest comes together.
Posted by: Cris | Mar 16, 2022 4:21:07 AM
Ray Larder,
You are an idiot. Where have you lived so far? In your parents' basement? You didn't have to rent until you built yourself that "amazing" house made of sticks? Remember the story of the three little pigs? Simply pathetic and shameless liar.
Posted by: Bruno Fast | Mar 17, 2022 3:39:18 AM
well at is so calld igorance from the last one calling people idiot,i must say that you are intire a idiot because you are jelouse about somebody build a house with no debit card or credit card,so take a grip boy
Posted by: Bruno Fast | Mar 17, 2022 3:44:37 AM
i bin with out a credt card for 5 years and i only use debit card,and i was around the world and at never give me problems.Becarffull when you take money out of the bank because there are alves somebody what would like to take the money out of you.Alves put your hand in the botton of the protection for the pin numer,because they gluwe a devise so that at copy your pin numer.Good loock