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Using Credit Cards in public instead of using a Debit Card

Frequent Contributor

Using Credit Cards in public instead of using a Debit Card

I've heard that some people don't use a debit card to pay for things, they use a credit card instead. They say that they don't "trust" using their debit card?

I have a basic idea on why they dont use their debit card, but I would really like to learn about some of the dangers of using a debit card

 

Thanks.

In Wallet 03/15/2017: CSR $11,000 | Chase Freedom Unlimited $6,000

In Garden Until 2019
Message 1 of 45
44 REPLIES
Contributor

Re: Using Credit Cards in public instead of using a Debit Card

I'll wait for the experts to chime in, but from my understanding I think a lot of it comes down to fraud protection.

 

Debit cards are linked directly to your bank account, so if the security were to be compromised, it's gives the hacker direct access to your money. From what I understand, it's a more difficult process to get your money back after fraudulent activity when dealing directly with a bank.


Credit cards add an extra layer of security between your purchases and your bank account. Most credit cards will give you $0 fraud liability, and disputing fraudulent charges is easier since there's additional protection of your funds.

20 years old | 4 Cards in my wallet | TU (3/28/14) 743
January 2013 - 1st Financial Bank USA Platinum VISA ($500 --> $1,500)
June 2013- Discover IT Student ($1,500 --> $1,800 --> $2,100), Citi Forward Student ($1,500 --> $2,900)
December 2013 - Macy's American Express ($1,000 --> $3,000)
February 2014 - American Express Blue Cash Everyday ($3,000), Chase Freedom ($2,000)
April 2014 - Sallie Mae MasterCard ($3,800)
Message 2 of 45
Super Contributor

Re: Using Credit Cards in public instead of using a Debit Card

Not sure about the dangers but I use CC's for the reward points and then just pay off the bill monthly...

Why use a debit card which comes directly from my bank account when I can get money or miles out the deal with the same  amount of money out of my bank account?

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 3 of 45
Valued Member

Re: Using Credit Cards in public instead of using a Debit Card

Any time you use your card in public you make it suceptible to skimming devices.  Credit cards are not less likely to get skimmed, but if you are going to get defrauded then it's "better" if someone fraudulently uses your credit card and not your debit card.  The overall risk of getting your card information collected and used fraudulently is low, but it happens.

 

Scenario 1:  Joe Schmoe has $2000 in his checking acct and uses his debit card for everything.  Someone skims his debit card info and makes a $1500 purchase for international plane tickets.  Joe's landlord called because his $800 rent checked bounced.  He gets evicted and dies a lonely death on the street because his $1500 was tied up and unavailable during the bank's investigation and he couldn't pay the bills.

 

Scenario 2:  Joe Einstein uses his credit card everywhere.  His card also gets skimmed and those same geniouses are buying more international plane tickets with Mr. Einsteins card info.  Joe sees the fraudulent purchase and the credit card company takes care of it before his next statement posts.  Joe Einstein's only disappointment:  Chase immediately  took back those UR points earned on the fraudulent ticket purchase.  Smiley Sad bawww

 

 

Scenario 1 didn't play out all the way in my case (whew!) but I had to stretch things reaaaallllll thin for almost a week while the bank sorted out a large fraudulent purchase that almost emptied my checking account.  Had the purchase been made on a CC it would be much less of a headache.

---------------------------------------------------------------------------------------------
Gardening since 5-2014
Message 4 of 45
Valued Contributor

Re: Using Credit Cards in public instead of using a Debit Card

People who prefer making money and are generally more financially knowledgeable don't use debit.  When I first got my USAA debit card, it did offer rewards, but USAA cancelled that a few years ago.  I don't know of any debit cards that earn rewards anymore.  So, of course, everyone uses credit now.  Using debit when you have rewards cards is not smart.  I think most people have this kind of common sense, which is why I don't actually know anybody who uses a debit card.  Wouldn't you rather earn extra money just for living and doing your normal everyday spending?

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Message 5 of 45
Frequent Contributor

Re: Using Credit Cards in public instead of using a Debit Card

When you use a debit card, it's your money at risk.

 

When you use a credit card, it's the bank's money at risk. There is a max amount of money consumers are liable for fraudulent charges per federal law. 

Message 6 of 45
Valued Contributor

Re: Using Credit Cards in public instead of using a Debit Card

I never use debit, leave it at home. Everything is credit than PIF just like debit. If store only take cash, the store will lose my business and I move on.
2013 Approvals: Discover IT - 3/1, Amex BCE - 3/4, CSP - 5/4, Barclay Ring - 6/12, BoA Privileges Cash - 6/27, Citi TY Preferred - 8/6, OCCU Duck - 11/4, USBank (Cash+) - 11/22, Wells Fargo - 12/21, Nordstrom - 12/29

12/19/2013, $100k+ Available Credit. Total Util: 0-1%
Message 7 of 45
Senior Contributor

Re: Using Credit Cards in public instead of using a Debit Card


sergi0wned wrote:

I'll wait for the experts to chime in, but from my understanding I think a lot of it comes down to fraud protection.


^ This -- for me at least.

Message 8 of 45
Frequent Contributor

Re: Using Credit Cards in public instead of using a Debit Card


myjourney wrote:

Not sure about the dangers but I use CC's for the reward points and then just pay off the bill monthly...

Why use a debit card which comes directly from my bank account when I can get money or miles out the deal with the same  amount of money out of my bank account?


My debit card gives me air miles rewards.  And my bank guarrentees me Zero liability for stolen debit card / errors (as all Canadian banks do!).  Debit card fees are a lot cheaper for stores than credit cards per transaction and thus they are more willing to pay me back with rewards.  I don't see the downside.  But then again I'm Canadian and we lead the world in debit card usage by a w-i-d-e margin.  I got my first real debit card back in 1983 which was 3 years before the other banks even figured out what the Interac and Plus debit system were!  [Technically what I had was a bank card, and a POS card, a debit card and a credit card all rolled into one card, the world's first true debit card.]

 


Starting Score: 732 October 2007; Current Score: EQ 836; TU 806, November 2017; Oldest Reporting EQ Account: 15.8 years; EQ AAoA: 8.0 years; Typical credit utilization 1.8% typical single card utilization 10.6%
Message 9 of 45
Frequent Contributor

Re: Using Credit Cards in public instead of using a Debit Card


jugstore wrote:

Any time you use your card in public you make it suceptible to skimming devices.  Credit cards are not less likely to get skimmed, but if you are going to get defrauded then it's "better" if someone fraudulently uses your credit card and not your debit card.  The overall risk of getting your card information collected and used fraudulently is low, but it happens.

 

Scenario 1:  Joe Schmoe has $2000 in his checking acct and uses his debit card for everything.  Someone skims his debit card info...

 

Scenario 2:  Joe Einstein uses his credit card everywhere.  His card also gets skimmed ...

 

All the more reason to use chip and pin EMV technology on ALL cards (debit or credit) as this can practically eliminate skimmers. 


Starting Score: 732 October 2007; Current Score: EQ 836; TU 806, November 2017; Oldest Reporting EQ Account: 15.8 years; EQ AAoA: 8.0 years; Typical credit utilization 1.8% typical single card utilization 10.6%
Message 10 of 45