Swiping your debit card often feels automatic, but did you know that it can lead to problems in some places? Unlike a credit card, debit card withdraws funds from your bank account directly. So in case of a fraud or a mistake, the money in your account is at risk – getting these funds back can be a nightmare. Here are 10 places where you need to seriously reconsider using your debit card to protect your money.
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Gas Stations
Skimmers make gas pumps ideal targets for hackers because these small devices can capture your card information every time you swipe. Once scammers capture your information, they can empty your bank account before you realize it. And here’s the kicker: Fraud protection measures are weaker for debit cards than credit cards. You can protect yourself from skimmers by using a credit card or paying with cash.
ATMs That Aren’t From Your Bank
Have you ever found yourself at a gas station ATM or a poorly lit bar ATM because you needed quick cash? Bad idea. These ATMs have exorbitant fees and frequently get targeted by skimmers to steal card information. Always, use your bank’s ATMs or request cashback at grocery stores whenever you need cash.
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Online Shopping
Hackers use online stores as their playground to steal your personal information. When a hacker compromises your debit card, they immediately withdraw funds from your bank account, leaving you to deal with recovering your money. Always use a credit card or PayPal. Credit cards provide better fraud protection while PayPal delivers additional security measures.
Restaurants & Bars
Think about it: When you give your debit card to a server at a restaurant or bar, a stranger removes it from your sight temporarily. Most businesses operate honestly but a single dishonest worker can duplicate your credit card details or add unauthorized charges. However, you can dispute fraudulent charges more easily when you use a credit card. The safest payment method is to use small cash bills.
Hotels
Hotels often place large holds on your card for incidental expenses which can exceed the cost of your entire stay. When you use a debit card, your bank account balance gets frozen for days or sometimes weeks. Therefore, before giving your debit card to pay for the hold amount, ask them the total amount they will hold.
Car Rentals
Just like hotels, car rental firms place holds on your card, which can reach several hundred dollars to cover potential vehicle damage. When you use a debit card for transactions, the funds are immediately gone from your account until the company releases them. Choose credit cards to prevent waiting for your money to be returned. Many credit cards provide rental car insurance coverage, which can help you save money.
Subscription Services
Have you ever tried canceling a subscription but found you were still billed the following month? Certain companies make the cancellation process difficult which leads to unauthorized debit card billing that damages your bank account balance. The solution to this issue is using a credit card or PayPal. Credit cards provide stronger defenses against unauthorized charges when billing issues arise.
Big Purchases (TVs, Laptops, etc.)
When making expensive purchases you should avoid using your debit card as your payment method. When there’s a problem like product defects or fraudulent sellers, you have to go through a lengthy and irritating process to receive your refund. This is why you should choose a card which provides purchase protection and extended warranties for added security.
Public Wi-Fi Payments
Hackers often target public Wi-Fi networks found in places like coffee shops, airports, or hotels to steal card details during payment transactions. A hacked debit card jeopardizes your actual bank account balance. Do not enter payment information when using public Wi-Fi networks. If necessary, you should use a VPN or mobile data as an alternative.
Any Sketchy or Unfamiliar Business
Never use your debit card when purchasing from unknown online stores or small businesses you haven’t researched fully. When you discover a business is fraudulent or they charge you too much money, recovering your funds becomes difficult.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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