Why you should never use a debit card for online purchases?
When it comes to spending cash, people have their own precise comfort zones. A score of people persist in using their debit cards for payments as a viable way for controlling their expenditure and avoiding huge credit card debts. This is especially so since debit cards do not allow a user to spend what they do not have in their accounts.
On the other hand, debit card expenditures are filled of hidden hazards and such dangers are make them a tempting substitute to the credit cards, such as spending only the money present in your account. While quantities of people say that credit card use is dangerous on account of the likelihood for racking up enormous sums of debt, it is not as though debit cards can be used with no concern or caution. Here are some reasons why you should not use your debit card for online purchases:
Reason 1 – No spending cap
Both credit cards and debit cards allow one to make purchases through e-transactions. Nevertheless there is a big disparity. A credit card has a set limit on the spending expenditure, whereas a debit card does not have a limit. When one has cash in their bank account, they can use that money with their debit card.
What this refers is that when a debit card gets negotiated through online frauds, a user can lose potentially all the cash that they possess in their bank accounts. On the contrary, if the credit card happens to get compromised, a user loses out all the credit at the worst.
Reason 2 – You can lose your bank account money
When a user spends money via a credit card, they are actually spending the bank’s currency. Though after they have made a buy it becomes their liability and they are obliged to pay in conjunction with any interest or fee that a bank might charge them. This presents a kind of protection in case of a fraud.
Even when the credit card gets compromised and utilized without permission, it is the liability of the bank to manage and avoid a fraud rather than the user’s responsibility. If credit cards get misused, owners can always clarify with the bank on the fraud case and how they are not liable. As a general rule, the banks investigate such transactions and when they findi that they are truthful, banks do not charge them for such fraudulent transactions.
In debit card frauds as well, users can inform their bank about such misuse of their cards and they can probably get their cash back. Nevertheless, the disparity between these two fraud transaction misuse types is that in case of debit card use, users first lose the cash and when their bank finds their claim to be true, they get it back. But in credit cards, users do not lose money, except later on if the bank denies the fraud claim and asks them to pay instead.
Reason 3 – It’s Smarter To Use Credit Cards Which Offer Money Saving Rewards/Points
This is a point echoed through many articles here on CreditSmart. It’s simply irresponsible to NOT use a credit card when you can save money, get cash back, or earn valuable rewards points just by using a credit card. This way every purchased is money saved or money earned.
So..Use a Credit Card For Safety and Savings
For these reasons, it is better that one does not make day to day online transactions through a debit card. On spending money by means of a debit card, users tend to lose their hard earned cash immediately. Their money is deducted straight away from their bank accounts in contrast to a credit card system.
Debit cards offer customers less rights in case of larger potential liabilities, unauthorized purchases, lengthier potential resolution times, along with even lesser protection on the buys they make. The idea of being only capable of spending what you possess in your bank account can be alluring, but in reality using debit cards are riskier than having cash itself.
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