Technology: Never use your debit card for these 9 things - PressFrom - Canada
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TechnologyNever use your debit card for these 9 things

17:50  15 may  2019
17:50  15 may  2019 Source:   moneytalksnews.com

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The minute you check out is essentially the minute that money leaves your bank account. It’s safer to pay with a credit card when shopping online, according to the U.S. Federal Trade Commission (FTC).

“ These card readers grab data off a credit or debit card ’s magnetic stripe without your knowledge. Criminals sell the stolen data or use it to buy things online. Try to use cash or a credit card when eating out — unless your waiter brings a handheld payment system to the table so your plastic never .

Never use your debit card for these 9 things© Daisy Daisy / Shutterstock.com

A debit card is a lot like cash, because transactions are instantaneous. The minute you check out is essentially the minute that money leaves your bank account.

Using debit cards can be risky, too. They don’t offer a lot of financial protection and are more attractive to thieves in certain situations.

For these reasons and others, sometimes you’re better offer using a credit card or cold, hard cash. Here are nine examples:

1. Online purchases

It’s safer to pay with a credit card when shopping online, according to the U.S. Federal Trade Commission (FTC).

If a cybercriminal intercepts your debit card number, they can immediately drain your account.

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Use your debit card for one of these expenses and you could risk your bank account balance, your credit score or even identity fraud. A debit card is a lot like cash, because transactions are instantaneous. The minute you check out is essentially the minute that money leaves your bank

Debit cards are convenient and can be used safely for some items, but not for all purchases. Thieves love for you to use your debit card , because they can get away with a debit card crime Hotels will put a hold on your card to cover charges for your room, and other things such as the mini

Credit cards come with more protection. For example, as we explain in “7 Ways to Guard Your Wallet — and Identity — When Shopping Online,” credit card transactions are protected under the Fair Credit Billing Act:

“This federal law provides you certain consumer protections, like the ability to dispute billing errors and to withhold payment while your creditor investigates the disputed charges. Perhaps more importantly, the law generally limits your responsibility for unauthorized credit card charges to $50.”

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2. Gas

Gas stations can be hot spots for criminal activity. According to Visa, about 1.3% of payment fraud in the U.S. occurs at fuel pumps.

Earlier this year, the FTC warned travelers about the use of card skimmers at gas pumps. Skimmers are illegal card readers that criminals can attach to payment terminals. Fuel pump payment terminals are attractive targets because they are not manned by employees.

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Consider this : The banking industry pushes debit cards as being almost equivalent to cash. But there’s a psychological factor the banks are missing here All of that said, you should never even think about using a debit card in any of these situations: When buying airline tickets: Lot’s of things can go

There are certain instances when using your debit card puts your money at risk. That's why debit cards are one of the things you should never , ever keep in your purse. If you are a victim of debit card fraud, though, you could be out up to 0 — especially if you swipe at these risky places.

The FTC continues:

“These card readers grab data off a credit or debit card’s magnetic stripe without your knowledge. Criminals sell the stolen data or use it to buy things online. You won’t know your information has been stolen until you get your statement or an overdraft notice.”

Though not a completely risk-free option, a credit card is safer for buying gas.

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If you must use a debit card, the FTC advises running it as a credit card. When you use a debit card as a credit card, you won’t have to enter the PIN — which helps keep your PIN safe — and the money won’t be immediately deducted from your bank account.

Related video: Pros and cons of department store credit cards [Provided by Money Talks News]

3. Eating out

Let your debit card out of sight for a few minutes, and it could end up in the wrong hands — or in a card skimmer.

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Using a debit card for online purchases is actually very safe though. Businesses and financial institutions are all just as concerned as individuals This secure process never involves soliciting your credit card information in an email. All online purchases should be made through a secure online form.

Always use a credit card for this in case charges show up that shouldn’t be there. 10. ATMs and Pay-at-the-Pump Gas Stations. These places are usually poorly monitored so criminals prey on people in these environments. So before you go whipping out your debit card , keep these 10 spots in mind.

Try to use cash or a credit card when eating out — unless your waiter brings a handheld payment system to the table so your plastic never leaves your sight.

4. Hotel reservations

To secure your room reservation and cover incidentals, hotels will put a hold on your payment card. If you give a hotel a debit card, it will effectively take the amount of the hold out of your bank account, according to Frommer’s.

The funds will be returned after you check out. But it might take your bank several days to process the request, meaning the funds will remain inaccessible to you for several days after your hotel stay.

Avoid the headache and book hotels with a credit card, instead. Just be careful not to exceed your credit limit while the hold is on your credit card.

5. Car rentals

If you don’t have a credit card, renting a car will likely cost you more than the daily fee.

Some Avis, Budget and Hertz locations, for example, perform credit checks on many customers who rent with a debit card, according to their websites. That can ding your credit score.

Some car rental companies might also place a hold on your debit card.

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In the case of a debit card , this means that an individual might not be refunded, and the charges, withdrawn for weeks. At times banks will provide a While debit cards are helpful because they only allow individuals to pay for things which they actually have the money for, the reality is they also have

Here are 10 things you should never put on your credit card . I suggest you should avoid using the credit card altogether for any purchase unless made solely for convenience. With everyone having debit cards , what sound financial reason would someone have for using a credit card for any

6. Other rental items

When it comes to planning events — like a wedding or kid’s birthday party — use a credit card to rent tables, tents and bounce houses.

Party rental companies often require a deposit. So, presenting a debit card means the deposit amount will be taken straight out of your bank account.

The same goes for renting trucks and tools at a home improvement store.

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7. Big-ticket items

Have you ever had new furniture delivered, only to find the corners dinged or the upholstery stained?

If you paid with a credit card, you could dispute the charges and get your money back. Again, the Fair Credit Billing Act gives you the ability to dispute credit card transactions and to withhold payment while your credit card company investigates.

Unfortunately, it’s not the same with debit card transactions. Plus, the money will be long gone from your bank account before you even notice the furniture damage.

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8. Subscriptions and automatic purchases

In the age of meal-delivery services, auto-ship programs and electronic toll-road passes, you may be tempted to set it and forget it.

You simply put your debit card on file, and the company automatically charges you on a recurring basis. But if you don’t tally these expenses into your monthly budget, your bank account might end up in the red.

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When your debit card is used by a thief, the money is missing from your account instantly. Legitimate expenses for which you've scheduled online payments or Hanging on to your funds for this extra time can be helpful in two ways. First, the time value of money, however infinitesimal, will add to wealth.

Some card issuers place spending limits on credit and debit cards , or enable customers to set limits of their own. If you go over the limit, your card will be declined, even if you have plenty of credit available to cover the purchase. Never Use Your Debit Card for These 9 Things .

To avoid overdraft fees, use your credit card for automatic recurring expenses.

9. Cash back at independent ATMs

Withdrawing cash at a free-standing ATM can put your debit card in danger. These machines are less likely to be monitored than ATMs at banks, which means fraudsters can more easily compromise them.

So, if you’re trying to get cash to buy dinner, use an ATM at a physical bank.

Would you add any types of expenses to this list? Share your thoughts below or on our Facebook page

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