10 Places You Should NEVER Use Your Debit Card
10 Places You Should NEVER Use Your Debit Card BY NILUS MATTIVE for Daily Reckoning
Paying with your debit card might seem like a responsible move.
After all, getting in the habit of whipping out your credit card whenever you have to make a purchase might lead to overspending.
But from a security standpoint, paying with a credit card is actually the better move.
By the end of this year, credit and debit card fraud is expected to reach $33B globally. While a criminal can steal your credit card just as easily as they can steal your debit card, the consequences are different.
Debit cards are not as well protected as credit cards. And since your debit card is linked to your bank account, anyone with your debit card information can have access to all your funds.
Whereas credit card transactions usually don’t get billed until later, the damages are handled differently. If you’re a victim of debit card theft, depending on your situation, you can be held liable for significant losses, especially if you don’t report the fraud fast enough.
According to the FTC and the Consumer Financial Protection Bureau, here’s what happens if your debit card is stolen or compromised:
- If you report the card as lost or stolen within two business days, you won’t be responsible for more than $50 of unauthorized transactions.
- If an unauthorized transaction appears on your statement (but your card or PIN has not been lost or stolen), under federal law you will not be liable for the debit if you report it within 60 days after your account statement is sent to you.
- If someone uses your physical ATM or debit card without your permission (meaning it was stolen) and you report the fraudulent charges within 60 days after your statement is mailed to you, you could lose as much as, but no more than, $500.
- If someone uses your ATM or debit card without your permission and you don’t report it within 60 days after your statement is mailed to you, the potential damage is unlimited. You could lose all the money in that account, the unused portion of your maximum line of credit established for overdrafts, and even more.
And here’s what happens if your credit card or credit card number is stolen:
- If your credit card number is stolen, not the physical card, you are not responsible for unauthorized charges under federal law.
- If the actual card is stolen, you are liable for no more than $50 in authorized charges — as long as you report it to your card issuer. Some issuers won’t even charge you the $50.
The difference is pretty shocking and you’re probably wondering when is a good time to use my debit card? Surprisingly, it’s safer to carry cash with you than it is to use your debit card in most situations.
If your cash gets stolen, you lose whatever amount you were carrying. If your debit card goes missing, well, I don’t have to tell you twice…
But leaving your debit card at home is not always an option. Sometimes you’re stuck having to use a debit card.
So where should you absolutely AVOID using a debit card?