Banks love to advertise debit cards so that you can do more and more transactions and put more money into their accounts. Consumers also love this plastic type of payment. Most people use debit cards, not credit because they are afraid not to keep track of spending and then have to pay interest on the loan. But you should know that you should not use a debit card wherever you want. No matter how convenient this type of payment seems to you.
In this article, we will look at the dangers of debit cards and their hidden costs. And also denote the places in which you should never use them.
Debit Card vs. Credit Card
Debit cards linked to your checking account allow you to make purchases while avoiding the interest charges that may occur when using a credit card. That is why some conscious citizens choose such a card for payment, rather than a credit card, which they cannot afford to pay.
But there is a big problem: what if the offender takes possession of your card?
According to federal law, a debit card does not have the same protection as a credit card. Here is a look at the basic safeguards and consequences of what happens in debit card fraud cases against credit card fraud.
Debit Card Fraud:
You are fully responsible for unauthorized transactions up to $ 50 if you report a loss or theft of your card within two business days.
Did not have time to report within two days? Forget that someone will pay you damages if it was less than $ 500. And this is only if you still report a problem within 60 days.
If you did not notify the bank 60 days after the incident, the bank may refuse to indemnify you in full.
Pretty strict recommendations on using the card, is not it? Compare this with the level of protection you get when using a credit card:
Risks when using a credit card:
You do not assume any liability for unauthorized charges under federal law, if your card number is stolen.
You will not be liable for more than $ 50 authorized expenses if you have a stolen credit card.
Obviously, you are given much more leeway when you use a credit card against a debit card. Of course, we are now talking about saving in the event of unforeseen circumstances, and only if you are sure that a refund to a credit card will not produce additional problems.
Hidden cost of debit cards
There is one interesting psychological moment. The banking industry serves debit cards as the equivalent of cash. But. The fact is that many of us say goodbye much faster and easier with numbers on the screen of a smartphone than with cash in your pocket. When you pocket $ 100 and you give them, you know what you need to do something to the $ 100 re-emerged in the pocket. This psychological factor makes many people spend much less money when they pay in cash and with a plastic card.
If you had problems by the end of the month, that you didn’t have enough money that you had planned for this period, think about how you pay in a store or cafe. Make it a rule to pay only in cash, and use a debit card to go to an ATM.
Places where you never need to use a debit card
Buying airline tickets. Such tickets are usually expensive. At the same time, more and more recently it happens that airlines simply simply do not close. In such a case, it will be much easier to return the money spent if you used a credit card.
ATM in non bank. Try to use only ATMs located inside the bank office. Otherwise, you increase the risk of becoming a victim of fraudsters who use skimmers
Payment in the terminal at the gas station. Recorded many frauds related to these devices. It is best to choose a gas station with a cashier and pay the cashier.
Shopping online. A credit card is a much better option when buying something online. If you have not received your goods or have any problems with the transaction, you can chargeback within 60 days and get your money back from your bank.
A restaurant. Many institutions still use this practice: you transfer your card to an employee to the waiter, he approaches the cashier and makes payment. Even in the most expensive restaurant there may be staff turnover among the waiters, so there is a risk of personal data theft.
Most likely, many of us will simply find it impossible to refuse the entire debit card. After all, this is really a convenient way to communicate with money and pay for purchases. In this case, we advise you to take at least one step to protect your money.
Open a second account and link a debit card to it. Then replenish it only with the amount you intend to spend in the near future. Thus, there will always be a small amount on the map you use everywhere. And your main account will remain protected and not at risk if your debit card falls into the wrong hands.