5 Reasons Not to Use Debit Cards When You Shop Online
5 Reasons Not to Use Debit Cards When You Shop Online
By Holly Johnson. Last updated 7 November 2020.
Many consumers use their debit cards for everything they buy. Using debit instead of paying with a credit card can help you avoid the potential for debt. The money is taken out of your bank account directly and immediately, so there’s little chance to spend more than you have, unlike using a credit card. But when shopping online, there are reasons to consider using a credit card instead.
Using a debit card for online purchases can mean enduring greater losses if you're a victim of fraud. Plus, you're giving up valuable consumer protections and rewards each time you make a purchase with debit in a store or online.
Here are all the reasons you may want to stop using debit and use a credit card instead.
1. You may be putting yourself at risk for fraud
It's easy to assume you won't be liable for fraudulent purchases made with your debit card or checking account number, but this isn't the case. Where most credit cards come with zero fraud liability thanks to rules enacted in the Fair Credit Billing Act (FCBA), the same protections don't apply to transactions made with a debit card.
In fact, someone who finds your debit card number could wipe out all the money in your accounts. If you don't notice or report it in time, you won't have any way to get your money back.
According to the Federal Trade Commission (FTC), your level of liability depends on when you notice the fraud and report it. For example, if you report fraud within two business days after it's noticed, you're only liable for up to $50 in losses. If you report fraud within two to 60 days of your statement being mailed to you, you're only liable for up to $500. If you fail to report fraud once it's been 60 days from the date your statement was mailed to you, the FTC notes that you could lose "all the money taken from your ATM/debit card account, and possibly more; for example, money in accounts linked to your debit account."
2. You're missing out on rewards
To continue reading, please go to the original article here:
https://www.wisebread.com/5-reasons-not-to-use-debit-cards-when-you-shop-online?ref=relatedbox