9 cases when you should not use a debit card

A debit card is very similar to cash because transactions are instantaneous—the moment you pay for a purchase is the moment the money leaves your account, so reversing the transaction is much more difficult than with a credit card, and refunds will take longer. Using debit cards is also associated with a high degree of risk - they do not have a high level of financial protection and are more attractive to thieves in certain situations.

For these and other reasons, it is sometimes better to use a credit card or cash. Edition Money Talks News collected nine examples of when it is better to refrain from paying for purchases by debit card.

1. Online shopping

According to the US Federal Trade Commission (FTC), making purchases online is safer to pay with a credit card.

If a cybercriminal intercepts your debit card number, he can immediately withdraw money from your account.

Credit cards have a higher level of protection; in particular, the credit card holder has the right to cancel and dispute transactions and withhold payment while your lender investigates disputed payments. More importantly, the law usually limits your liability for unauthorized payments on 50 credit cards in dollars. ”

2. Petrol

Gas stations are often points of active criminal activity. According to Visa, about 1,3% of payment fraud in the United States occurs at petrol stations.

Criminals often attach skimmers - illegal card readers - to fuel pump payment terminals and eventually gain access to the consumer's card data.

Although a credit card is not an absolutely risk-free option in such a case, it is, due to a higher level of protection, safer to purchase gasoline.

3. Eating out

Leave your debit card unattended for a few minutes, and its data may be in the hands of a criminal or in a skimmer.

Try to use cash or a credit card during lunch outside the house. A debit card can only be used if the waiter brings the terminal to the table, and you will constantly see your card during the transaction.

4. Hotel booking

To ensure room reservations and pay for unexpected expenses, hotels usually block the required amount on your card for a certain time. If you give the hotel debit card details, it will actually withdraw the required amount from your bank account, and not just block it.

Funds will be refunded after verification. But your bank may need several days to process the transaction, that is, the funds will remain unavailable to you for several days after booking the hotel.

Avoid such a headache and book hotels with a credit card.

5. Car rental

If you do not have a credit card, renting a car will probably cost you more.

For example, some car rental companies, such as Avis, Budget and Hertz, check many customers' credit history if they rent a car with a debit card. This can change your credit rating and eventually fly you a pretty penny when you make a loan.

6. Renting other things

When it comes to planning events—like a wedding or a child's birthday party—use a credit card to rent tables, tents and other items.

Rental companies for such equipment often require a deposit. Thus, the presentation of a debit card means that the amount of the deposit will be withdrawn from your bank account.

7. Great purchases

Sometimes buying new furniture, after delivery, you can find damaged upholstery or scratches on surfaces. If you have paid for your purchase with a credit card, you can dispute the payment and return your money or block the transaction until you find out the circumstances.

Unfortunately, such an operation cannot be done if the goods were paid by debit card. In addition, in this case, the money will be withdrawn from your bank account before you even notice damage to the furniture.

8. Subscriptions and automatic purchases

In the era of food delivery services, road haulage programs, and electronic passes to toll roads, you may be tempted to set their automatic payment and get rid of many routine worries.

To do this, you can simply add your debit card details when registering, and the company will automatically charge you for a particular service or item on an ongoing basis. But if you do not include these expenses in your monthly budget, your bank account may be in the red.

To avoid overdraft fees, use your credit card for automatically recurring charges.

9. Cash withdrawals at independent ATMs

Withdrawing cash from a standalone ATM can endanger your debit card. These machines are less monitored than ATMs at banks, which means that fraudsters can more easily install equipment to steal card data on them.

So for cash withdrawal it is better to use ATMs installed in the bank.

Read also on ForumDaily:

6 financial crimes you may accidentally commit

How to protect yourself from identity theft

8 tips how to build a good credit history in the USA

10 financial mistakes we make every day

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