Credit Cards Vs Debit Cards: Credit Cards Win… Sometimes
When it comes to credit cards vs debit cards the credit card probably wins in security. You need to know how credit cards workand that credit cards bring with them a number of protections and advantages. Many of these protections are unique to credit cards – your banking debit card simply doesn’t offer them, or at least not as well. That’s why there are 5 places that you should not use your debit card but instead opt for a true credit card purchase:
Don’t Use Your Debit at the Grocery Store
Technology can work against us, as it did with customers at one California grocery store chain when a person, posing as a credit card machine technician, entered a store and put “skimmers” on every machine in the place without anyone the wiser. These readers gave the crook the vital information off every credit and debit card used that day. Fortunately, credit cards offer vast protection against such theft and never cost you a penny out of pocket as long as you report the incident promptly. But debit cards result in a loss of money from your bank that might take weeks or months to replace.
Don’t Use Your Debit to Buy Gasoline at the Pump
When it comes to credit cards vs debit cardsskimmers like mentioned above are a big problem with gas stations also. In fact, according to Consumer Reports there have been multiple scams and arrests for skimmer installation to steal your card information. In addition, using a debit card at the gas pump puts a hold on money in your debit account – the amounts vary from station to station, but this can cause problems, especially if you tend to keep a low bank balance. Consumer Reports recommends you use credit cards if you want to pay at the pump.
Credit Cards vs Debit Cards: Don’t Use Your Debit Card at Restaurants
When you pay at a restaurant the wait staff often take your credit card away, to some secret location, to process it. It is super easy for them to scan a second time on a personal skimming device. It happens more than you think. In 2013, in Texas, a cashier at a restaurant was found skimming numbers, and this was far from the only case! Don’t use your debit at restaurants, especially if it’s a place where they take your card away to charge it.
Don’t Use Your Debit to Buy Online
When considering credit cards vs debit cards, credit cards a much better option for online shopping. This is mostly because if your merchandise never shows up you can file a claim with the credit card company and never pay a cent. It can be more difficult to get your money returned with a debit purchase. Pre paid credit cards can offer security as well, at a price.
Don’t Use Your Debit for Booking Future Travel
Companies go out of business every day. If you pay for travel through a company and that company goes out of business before your trip you may have difficulty recovering the money if you used your debit card instead of a credit card. In addition, many credit cards offer free travel perks, like travel insurance, baggage check-on and more if you pay for your travel plans entirely with the credit card.
Sources
Consumer Reports. http://www.consumerreports.org/cro/2013/08/credit-card-skimming-at-gas-pumps/index.htm
Grocery theft. http://www.savemart.com/for-immediate-distribution-credit-card-reader-tampered
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