Debit cards come with more risk than most payment methods, but we tend to use them because they’re convenient. While they can be handy, they can also cause you a lot of trouble. Here’s how to stay safe.
In general, credit cards are safest. If you have a credit card or charge card (read an explanation of the difference here), you’re better off using that for the majority—if not all—of your purchases. Credit and charge cards tend to come with better rewards and you don’t have to worry about fees for exceeding your limit. They better protect your money because you aren’t technically paying with your money until you’ve seen the charge, whereas your money is instantly removed when using a debit card. All of that said, there are many reasons why you might need or want to use a debit card. If you don’t need to use your debit card, don’t. If you have a good reason for using it, read on. We’re going to talk a look at the rights you have and the risks you take as a debit card owner, as well as what you can do to stay safe and avoid fees from your bank and general fraud.