Debit Cards – Be Careful!

Do you carry a debit card?

Debit cards are tied to a checking account and can limit your use of credit cards, but the problem is they don’t have the same legal protection. That’s why my wife and I never carry one. In fact, the only place we use one is on rare occasions when we need to withdraw cash from our bank’s ATM.

Security with a debit card is a real issue. Your bank account can be wiped out if you’re not vigilant. If you discover fraudulent activity and report it within 2 days, you’re responsible for $50 max. After two days but within 60 days of your bank statement, that responsibility rises to $500, but if you miss that time frame, you could be out unlimited amounts of money. Now with a credit card, you’re liable for no more than $50 if your card is stolen and for nothing if just the number is stolen. Skimmers are a serious issue at independent ATMS and gas pumps. Try to only use your personal bank’s ATM when withdrawing cash. If you don’t want to use a credit card at the pump, buy yourself a gasoline gift card. There is no reason to use the debit card frequently.

Credit cards make it easier in many situations like to rebook flights when purchasing airline tickets, when shopping online, or at retail establishments. A credit card makes it easier to get credited for returns or disputed transactions. Now if you must use a debit card, I recommend having a checking account designated for only that activity. This will protect your primary account. You’ve got to be wiser than the crooks!

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