Is a debit card dangerous for an account with low balance and no overdraft protection?












8















I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.



I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indicated there is fraud protection on my card, if it should be stolen and used to make purchases.










share|improve this question




















  • 7





    "I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"

    – BruceWayne
    18 hours ago








  • 2





    Do you mean the type of debit card that looks like a credit card (Visa/Mastercard, 16 digits, CVV code), or a Maestro/Cirrus "ATM card" that cannot be used for card-not-present payments? Both may be called debit cards but they're very different products.

    – gerrit
    14 hours ago






  • 2





    @BruceWayne A debit card is used to pay directly from your account while a credit card is a loan you pay off later. Yes, a credit card extends your spending limits, but a debit card can do that as well if the account can go in the red (e.g. no "overdraft protection"). The only real difference is when the money leaves your account, not wether it extends your spending limit. I assume what OP means by "use a debit card as a credit card" is that they simply pay with the card like you would with a credit card, which is common in my country but I guess is not common everywhere.

    – Kevin
    8 hours ago











  • @BruceWayne in the Untied States, if a card user reports a fraudulent transaction, most credit card and debit card processors will hold the card user to $0 liability out of good business practice. But if it becomes contentious, the law is written to limit liability to the card user to $50 for credit card fraud and $500 for debit card fraud. That is $450 more danger, to me.

    – user662852
    6 hours ago








  • 3





    @BruceWayne OP probably means running the charge as "credit" (i.e. don't enter PIN) instead of debit.

    – Kenneth K.
    5 hours ago
















8















I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.



I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indicated there is fraud protection on my card, if it should be stolen and used to make purchases.










share|improve this question




















  • 7





    "I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"

    – BruceWayne
    18 hours ago








  • 2





    Do you mean the type of debit card that looks like a credit card (Visa/Mastercard, 16 digits, CVV code), or a Maestro/Cirrus "ATM card" that cannot be used for card-not-present payments? Both may be called debit cards but they're very different products.

    – gerrit
    14 hours ago






  • 2





    @BruceWayne A debit card is used to pay directly from your account while a credit card is a loan you pay off later. Yes, a credit card extends your spending limits, but a debit card can do that as well if the account can go in the red (e.g. no "overdraft protection"). The only real difference is when the money leaves your account, not wether it extends your spending limit. I assume what OP means by "use a debit card as a credit card" is that they simply pay with the card like you would with a credit card, which is common in my country but I guess is not common everywhere.

    – Kevin
    8 hours ago











  • @BruceWayne in the Untied States, if a card user reports a fraudulent transaction, most credit card and debit card processors will hold the card user to $0 liability out of good business practice. But if it becomes contentious, the law is written to limit liability to the card user to $50 for credit card fraud and $500 for debit card fraud. That is $450 more danger, to me.

    – user662852
    6 hours ago








  • 3





    @BruceWayne OP probably means running the charge as "credit" (i.e. don't enter PIN) instead of debit.

    – Kenneth K.
    5 hours ago














8












8








8


1






I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.



I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indicated there is fraud protection on my card, if it should be stolen and used to make purchases.










share|improve this question
















I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.



I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indicated there is fraud protection on my card, if it should be stolen and used to make purchases.







debit-card checking-account overdraft






share|improve this question















share|improve this question













share|improve this question




share|improve this question








edited 34 mins ago









200_success

853515




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asked 21 hours ago









horse hairhorse hair

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1,84021831








  • 7





    "I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"

    – BruceWayne
    18 hours ago








  • 2





    Do you mean the type of debit card that looks like a credit card (Visa/Mastercard, 16 digits, CVV code), or a Maestro/Cirrus "ATM card" that cannot be used for card-not-present payments? Both may be called debit cards but they're very different products.

    – gerrit
    14 hours ago






  • 2





    @BruceWayne A debit card is used to pay directly from your account while a credit card is a loan you pay off later. Yes, a credit card extends your spending limits, but a debit card can do that as well if the account can go in the red (e.g. no "overdraft protection"). The only real difference is when the money leaves your account, not wether it extends your spending limit. I assume what OP means by "use a debit card as a credit card" is that they simply pay with the card like you would with a credit card, which is common in my country but I guess is not common everywhere.

    – Kevin
    8 hours ago











  • @BruceWayne in the Untied States, if a card user reports a fraudulent transaction, most credit card and debit card processors will hold the card user to $0 liability out of good business practice. But if it becomes contentious, the law is written to limit liability to the card user to $50 for credit card fraud and $500 for debit card fraud. That is $450 more danger, to me.

    – user662852
    6 hours ago








  • 3





    @BruceWayne OP probably means running the charge as "credit" (i.e. don't enter PIN) instead of debit.

    – Kenneth K.
    5 hours ago














  • 7





    "I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"

    – BruceWayne
    18 hours ago








  • 2





    Do you mean the type of debit card that looks like a credit card (Visa/Mastercard, 16 digits, CVV code), or a Maestro/Cirrus "ATM card" that cannot be used for card-not-present payments? Both may be called debit cards but they're very different products.

    – gerrit
    14 hours ago






  • 2





    @BruceWayne A debit card is used to pay directly from your account while a credit card is a loan you pay off later. Yes, a credit card extends your spending limits, but a debit card can do that as well if the account can go in the red (e.g. no "overdraft protection"). The only real difference is when the money leaves your account, not wether it extends your spending limit. I assume what OP means by "use a debit card as a credit card" is that they simply pay with the card like you would with a credit card, which is common in my country but I guess is not common everywhere.

    – Kevin
    8 hours ago











  • @BruceWayne in the Untied States, if a card user reports a fraudulent transaction, most credit card and debit card processors will hold the card user to $0 liability out of good business practice. But if it becomes contentious, the law is written to limit liability to the card user to $50 for credit card fraud and $500 for debit card fraud. That is $450 more danger, to me.

    – user662852
    6 hours ago








  • 3





    @BruceWayne OP probably means running the charge as "credit" (i.e. don't enter PIN) instead of debit.

    – Kenneth K.
    5 hours ago








7




7





"I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"

– BruceWayne
18 hours ago







"I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"

– BruceWayne
18 hours ago






2




2





Do you mean the type of debit card that looks like a credit card (Visa/Mastercard, 16 digits, CVV code), or a Maestro/Cirrus "ATM card" that cannot be used for card-not-present payments? Both may be called debit cards but they're very different products.

– gerrit
14 hours ago





Do you mean the type of debit card that looks like a credit card (Visa/Mastercard, 16 digits, CVV code), or a Maestro/Cirrus "ATM card" that cannot be used for card-not-present payments? Both may be called debit cards but they're very different products.

– gerrit
14 hours ago




2




2





@BruceWayne A debit card is used to pay directly from your account while a credit card is a loan you pay off later. Yes, a credit card extends your spending limits, but a debit card can do that as well if the account can go in the red (e.g. no "overdraft protection"). The only real difference is when the money leaves your account, not wether it extends your spending limit. I assume what OP means by "use a debit card as a credit card" is that they simply pay with the card like you would with a credit card, which is common in my country but I guess is not common everywhere.

– Kevin
8 hours ago





@BruceWayne A debit card is used to pay directly from your account while a credit card is a loan you pay off later. Yes, a credit card extends your spending limits, but a debit card can do that as well if the account can go in the red (e.g. no "overdraft protection"). The only real difference is when the money leaves your account, not wether it extends your spending limit. I assume what OP means by "use a debit card as a credit card" is that they simply pay with the card like you would with a credit card, which is common in my country but I guess is not common everywhere.

– Kevin
8 hours ago













@BruceWayne in the Untied States, if a card user reports a fraudulent transaction, most credit card and debit card processors will hold the card user to $0 liability out of good business practice. But if it becomes contentious, the law is written to limit liability to the card user to $50 for credit card fraud and $500 for debit card fraud. That is $450 more danger, to me.

– user662852
6 hours ago







@BruceWayne in the Untied States, if a card user reports a fraudulent transaction, most credit card and debit card processors will hold the card user to $0 liability out of good business practice. But if it becomes contentious, the law is written to limit liability to the card user to $50 for credit card fraud and $500 for debit card fraud. That is $450 more danger, to me.

– user662852
6 hours ago






3




3





@BruceWayne OP probably means running the charge as "credit" (i.e. don't enter PIN) instead of debit.

– Kenneth K.
5 hours ago





@BruceWayne OP probably means running the charge as "credit" (i.e. don't enter PIN) instead of debit.

– Kenneth K.
5 hours ago










5 Answers
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The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.






share|improve this answer



















  • 9





    It'd be nice if you could elaborate on the difference between "your" money vs. money that's lent to you and that you have to pay back because I don't think it's obvious.

    – Mehrdad
    15 hours ago






  • 7





    I live in Europe (Belgium) where everything is done with debit cards, and I have never heard of fraudulent transactions with debit cards. What kind of fraude are we talking about here?

    – Jungkook
    14 hours ago






  • 8





    @Jungkook In UK, USA and elsewhere, debit cards are Visa/MasterCard, look like credit cards, can be used for card-not-present payments and with swipe&sign. In Netherlands, Germany, and elsewhere, debit cards are through Maestro and cannot be used for card-not-present payments. The N-American equivalent would be ATM Card (which can also be used at POS).

    – gerrit
    14 hours ago






  • 1





    @gerrit oooh ok I see, thanks for the clarification

    – Jungkook
    13 hours ago






  • 1





    @mehrdad you have the choice whether to pay back a credit card in full or spread it out per the interest terms. If it comes to it, you can declare bankruptcy and be released from credit debt. These are features not available to debit card use. As I noted in another comment, the laws in at least the United States limit card user liability to $50 for credit card fraud and $500 for debit card fraud. consumer.ftc.gov/articles/…

    – user662852
    6 hours ago



















5














Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.






share|improve this answer



















  • 1





    Is that really "danger" or just an inconvenience?

    – mastov
    12 hours ago











  • @mastov It can be a lot more than just an inconvenience. On a debit card, a "credit hold" reserves a (potentially-large) chunk of your funds such that you cannot access them. After the merchant releases the hold, it can take up to a week before you can access those funds again. This can easily leave you vulnerable to overdrafts, bounced checks, late bills, etc.

    – bta
    1 hour ago



















4














The dangers are:




  • When (not if) your card gets used for fraudulent transactions, those funds will be gone from your account until you get it resolved, which might take awhile.

  • When that happens, you'll want them to cancel that card and issue a new one. You'll be without access to any remaining funds in your account until that is resolved, which might take awhile. (Excepting in-person cash withdrawals or writing checks of course.)


Credit card people have it a bit easier. Funds don't disappear from their account, their amount of available credit just goes down. They still have access to funds in their account via a debit card, they just might not be able to use their credit card for additional funds beyond that. So it's likely to be resolved before it affects them, as long as they have funds in their account. That mitigates the danger for them.



I don't have a credit card. My solution is to carry a separate debit card for another account. If my primary gets compromised, I have my backup to last until it's resolved and vice-versa.



My credit union is actually very good about proactively detecting and blocking fraud, though it's gotten past them a couple times. In those cases it only took a few days to get my money back, but it could take much longer - would you be ok if your account was empty for a month while you waited? I can also get a new card on the first business day that I can get into a branch - can you get yours that quickly or do you have to wait a couple weeks for them to mail you one? Even if you can, if weekends and holidays and travel and weather intervene and make it take awhile before you can get in, would you be ok without your card?



Using a debit card isn't dangerous in itself, but you'll be in for a tough time if you're not prepared to deal without it for a bit. I recommend keeping a backup from a second account. That mitigates the danger.






share|improve this answer








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user82972 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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    4














    Many years ago, I used a Visa debit card for all purchases. Then there was a fraudulent charge on the card; luckily, my bank spotted it and refunded it immediately.



    I asked them what I could do to protect myself in future: the bank said I should use a credit card instead, as that had much greater protection. (As other answers have pointed out, you have an opportunity to contest a charge on a credit card before you've paid it.  Credit card companies have a greater incentive to resolve any problems, as it's their own money at stake!  I believe there are other advantages, too.)



    One other advantage to using a credit card is that you build up a credit score — especially if you pay it off in full every month (as I do). Had I not started using a credit card back then, I might have had much more trouble getting a mortgage.






    share|improve this answer








    New contributor




    gidds is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
    Check out our Code of Conduct.




























      2














      Federal law in the United States (as the OP mentions USAA) sets different requirements and limits on a user for reporting fraudulent use of a credit card versus a debit card. While as a matter of good customer service, a bank or card may hold you to $0 for the report of a fraudulent charge for either type of account, what they are required to do by federal law is different for each. In general the maximum liability a credit user has is $50. The maximum liability a debit card user can be unlimited.



      From the Federal Trade Commission




      Under the FCBA, your liability for unauthorized use of your credit card tops out at $50.



      ...



      If someone uses your ATM or debit card before you report it lost or stolen, your liability depends on how quickly you report it:



      ...



      More than 2 business days after you learn about the loss or theft, but less than 60 calendar days after your statement is sent to you, $500



      More than 60 calendar days after your statement is sent to you. All the money taken from
      your ATM/debit card acount, and possibly more; for example, money in accounts linked to your debit account.







      share|improve this answer






















        protected by JoeTaxpayer 57 mins ago



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        5 Answers
        5






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        5 Answers
        5






        active

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        active

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        15














        The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



        If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



        So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.






        share|improve this answer



















        • 9





          It'd be nice if you could elaborate on the difference between "your" money vs. money that's lent to you and that you have to pay back because I don't think it's obvious.

          – Mehrdad
          15 hours ago






        • 7





          I live in Europe (Belgium) where everything is done with debit cards, and I have never heard of fraudulent transactions with debit cards. What kind of fraude are we talking about here?

          – Jungkook
          14 hours ago






        • 8





          @Jungkook In UK, USA and elsewhere, debit cards are Visa/MasterCard, look like credit cards, can be used for card-not-present payments and with swipe&sign. In Netherlands, Germany, and elsewhere, debit cards are through Maestro and cannot be used for card-not-present payments. The N-American equivalent would be ATM Card (which can also be used at POS).

          – gerrit
          14 hours ago






        • 1





          @gerrit oooh ok I see, thanks for the clarification

          – Jungkook
          13 hours ago






        • 1





          @mehrdad you have the choice whether to pay back a credit card in full or spread it out per the interest terms. If it comes to it, you can declare bankruptcy and be released from credit debt. These are features not available to debit card use. As I noted in another comment, the laws in at least the United States limit card user liability to $50 for credit card fraud and $500 for debit card fraud. consumer.ftc.gov/articles/…

          – user662852
          6 hours ago
















        15














        The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



        If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



        So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.






        share|improve this answer



















        • 9





          It'd be nice if you could elaborate on the difference between "your" money vs. money that's lent to you and that you have to pay back because I don't think it's obvious.

          – Mehrdad
          15 hours ago






        • 7





          I live in Europe (Belgium) where everything is done with debit cards, and I have never heard of fraudulent transactions with debit cards. What kind of fraude are we talking about here?

          – Jungkook
          14 hours ago






        • 8





          @Jungkook In UK, USA and elsewhere, debit cards are Visa/MasterCard, look like credit cards, can be used for card-not-present payments and with swipe&sign. In Netherlands, Germany, and elsewhere, debit cards are through Maestro and cannot be used for card-not-present payments. The N-American equivalent would be ATM Card (which can also be used at POS).

          – gerrit
          14 hours ago






        • 1





          @gerrit oooh ok I see, thanks for the clarification

          – Jungkook
          13 hours ago






        • 1





          @mehrdad you have the choice whether to pay back a credit card in full or spread it out per the interest terms. If it comes to it, you can declare bankruptcy and be released from credit debt. These are features not available to debit card use. As I noted in another comment, the laws in at least the United States limit card user liability to $50 for credit card fraud and $500 for debit card fraud. consumer.ftc.gov/articles/…

          – user662852
          6 hours ago














        15












        15








        15







        The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



        If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



        So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.






        share|improve this answer













        The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



        If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



        So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.







        share|improve this answer












        share|improve this answer



        share|improve this answer










        answered 21 hours ago









        ToddTodd

        1,513612




        1,513612








        • 9





          It'd be nice if you could elaborate on the difference between "your" money vs. money that's lent to you and that you have to pay back because I don't think it's obvious.

          – Mehrdad
          15 hours ago






        • 7





          I live in Europe (Belgium) where everything is done with debit cards, and I have never heard of fraudulent transactions with debit cards. What kind of fraude are we talking about here?

          – Jungkook
          14 hours ago






        • 8





          @Jungkook In UK, USA and elsewhere, debit cards are Visa/MasterCard, look like credit cards, can be used for card-not-present payments and with swipe&sign. In Netherlands, Germany, and elsewhere, debit cards are through Maestro and cannot be used for card-not-present payments. The N-American equivalent would be ATM Card (which can also be used at POS).

          – gerrit
          14 hours ago






        • 1





          @gerrit oooh ok I see, thanks for the clarification

          – Jungkook
          13 hours ago






        • 1





          @mehrdad you have the choice whether to pay back a credit card in full or spread it out per the interest terms. If it comes to it, you can declare bankruptcy and be released from credit debt. These are features not available to debit card use. As I noted in another comment, the laws in at least the United States limit card user liability to $50 for credit card fraud and $500 for debit card fraud. consumer.ftc.gov/articles/…

          – user662852
          6 hours ago














        • 9





          It'd be nice if you could elaborate on the difference between "your" money vs. money that's lent to you and that you have to pay back because I don't think it's obvious.

          – Mehrdad
          15 hours ago






        • 7





          I live in Europe (Belgium) where everything is done with debit cards, and I have never heard of fraudulent transactions with debit cards. What kind of fraude are we talking about here?

          – Jungkook
          14 hours ago






        • 8





          @Jungkook In UK, USA and elsewhere, debit cards are Visa/MasterCard, look like credit cards, can be used for card-not-present payments and with swipe&sign. In Netherlands, Germany, and elsewhere, debit cards are through Maestro and cannot be used for card-not-present payments. The N-American equivalent would be ATM Card (which can also be used at POS).

          – gerrit
          14 hours ago






        • 1





          @gerrit oooh ok I see, thanks for the clarification

          – Jungkook
          13 hours ago






        • 1





          @mehrdad you have the choice whether to pay back a credit card in full or spread it out per the interest terms. If it comes to it, you can declare bankruptcy and be released from credit debt. These are features not available to debit card use. As I noted in another comment, the laws in at least the United States limit card user liability to $50 for credit card fraud and $500 for debit card fraud. consumer.ftc.gov/articles/…

          – user662852
          6 hours ago








        9




        9





        It'd be nice if you could elaborate on the difference between "your" money vs. money that's lent to you and that you have to pay back because I don't think it's obvious.

        – Mehrdad
        15 hours ago





        It'd be nice if you could elaborate on the difference between "your" money vs. money that's lent to you and that you have to pay back because I don't think it's obvious.

        – Mehrdad
        15 hours ago




        7




        7





        I live in Europe (Belgium) where everything is done with debit cards, and I have never heard of fraudulent transactions with debit cards. What kind of fraude are we talking about here?

        – Jungkook
        14 hours ago





        I live in Europe (Belgium) where everything is done with debit cards, and I have never heard of fraudulent transactions with debit cards. What kind of fraude are we talking about here?

        – Jungkook
        14 hours ago




        8




        8





        @Jungkook In UK, USA and elsewhere, debit cards are Visa/MasterCard, look like credit cards, can be used for card-not-present payments and with swipe&sign. In Netherlands, Germany, and elsewhere, debit cards are through Maestro and cannot be used for card-not-present payments. The N-American equivalent would be ATM Card (which can also be used at POS).

        – gerrit
        14 hours ago





        @Jungkook In UK, USA and elsewhere, debit cards are Visa/MasterCard, look like credit cards, can be used for card-not-present payments and with swipe&sign. In Netherlands, Germany, and elsewhere, debit cards are through Maestro and cannot be used for card-not-present payments. The N-American equivalent would be ATM Card (which can also be used at POS).

        – gerrit
        14 hours ago




        1




        1





        @gerrit oooh ok I see, thanks for the clarification

        – Jungkook
        13 hours ago





        @gerrit oooh ok I see, thanks for the clarification

        – Jungkook
        13 hours ago




        1




        1





        @mehrdad you have the choice whether to pay back a credit card in full or spread it out per the interest terms. If it comes to it, you can declare bankruptcy and be released from credit debt. These are features not available to debit card use. As I noted in another comment, the laws in at least the United States limit card user liability to $50 for credit card fraud and $500 for debit card fraud. consumer.ftc.gov/articles/…

        – user662852
        6 hours ago





        @mehrdad you have the choice whether to pay back a credit card in full or spread it out per the interest terms. If it comes to it, you can declare bankruptcy and be released from credit debt. These are features not available to debit card use. As I noted in another comment, the laws in at least the United States limit card user liability to $50 for credit card fraud and $500 for debit card fraud. consumer.ftc.gov/articles/…

        – user662852
        6 hours ago













        5














        Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.






        share|improve this answer



















        • 1





          Is that really "danger" or just an inconvenience?

          – mastov
          12 hours ago











        • @mastov It can be a lot more than just an inconvenience. On a debit card, a "credit hold" reserves a (potentially-large) chunk of your funds such that you cannot access them. After the merchant releases the hold, it can take up to a week before you can access those funds again. This can easily leave you vulnerable to overdrafts, bounced checks, late bills, etc.

          – bta
          1 hour ago
















        5














        Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.






        share|improve this answer



















        • 1





          Is that really "danger" or just an inconvenience?

          – mastov
          12 hours ago











        • @mastov It can be a lot more than just an inconvenience. On a debit card, a "credit hold" reserves a (potentially-large) chunk of your funds such that you cannot access them. After the merchant releases the hold, it can take up to a week before you can access those funds again. This can easily leave you vulnerable to overdrafts, bounced checks, late bills, etc.

          – bta
          1 hour ago














        5












        5








        5







        Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.






        share|improve this answer













        Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.







        share|improve this answer












        share|improve this answer



        share|improve this answer










        answered 21 hours ago









        user73552user73552

        1512




        1512








        • 1





          Is that really "danger" or just an inconvenience?

          – mastov
          12 hours ago











        • @mastov It can be a lot more than just an inconvenience. On a debit card, a "credit hold" reserves a (potentially-large) chunk of your funds such that you cannot access them. After the merchant releases the hold, it can take up to a week before you can access those funds again. This can easily leave you vulnerable to overdrafts, bounced checks, late bills, etc.

          – bta
          1 hour ago














        • 1





          Is that really "danger" or just an inconvenience?

          – mastov
          12 hours ago











        • @mastov It can be a lot more than just an inconvenience. On a debit card, a "credit hold" reserves a (potentially-large) chunk of your funds such that you cannot access them. After the merchant releases the hold, it can take up to a week before you can access those funds again. This can easily leave you vulnerable to overdrafts, bounced checks, late bills, etc.

          – bta
          1 hour ago








        1




        1





        Is that really "danger" or just an inconvenience?

        – mastov
        12 hours ago





        Is that really "danger" or just an inconvenience?

        – mastov
        12 hours ago













        @mastov It can be a lot more than just an inconvenience. On a debit card, a "credit hold" reserves a (potentially-large) chunk of your funds such that you cannot access them. After the merchant releases the hold, it can take up to a week before you can access those funds again. This can easily leave you vulnerable to overdrafts, bounced checks, late bills, etc.

        – bta
        1 hour ago





        @mastov It can be a lot more than just an inconvenience. On a debit card, a "credit hold" reserves a (potentially-large) chunk of your funds such that you cannot access them. After the merchant releases the hold, it can take up to a week before you can access those funds again. This can easily leave you vulnerable to overdrafts, bounced checks, late bills, etc.

        – bta
        1 hour ago











        4














        The dangers are:




        • When (not if) your card gets used for fraudulent transactions, those funds will be gone from your account until you get it resolved, which might take awhile.

        • When that happens, you'll want them to cancel that card and issue a new one. You'll be without access to any remaining funds in your account until that is resolved, which might take awhile. (Excepting in-person cash withdrawals or writing checks of course.)


        Credit card people have it a bit easier. Funds don't disappear from their account, their amount of available credit just goes down. They still have access to funds in their account via a debit card, they just might not be able to use their credit card for additional funds beyond that. So it's likely to be resolved before it affects them, as long as they have funds in their account. That mitigates the danger for them.



        I don't have a credit card. My solution is to carry a separate debit card for another account. If my primary gets compromised, I have my backup to last until it's resolved and vice-versa.



        My credit union is actually very good about proactively detecting and blocking fraud, though it's gotten past them a couple times. In those cases it only took a few days to get my money back, but it could take much longer - would you be ok if your account was empty for a month while you waited? I can also get a new card on the first business day that I can get into a branch - can you get yours that quickly or do you have to wait a couple weeks for them to mail you one? Even if you can, if weekends and holidays and travel and weather intervene and make it take awhile before you can get in, would you be ok without your card?



        Using a debit card isn't dangerous in itself, but you'll be in for a tough time if you're not prepared to deal without it for a bit. I recommend keeping a backup from a second account. That mitigates the danger.






        share|improve this answer








        New contributor




        user82972 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
        Check out our Code of Conduct.

























          4














          The dangers are:




          • When (not if) your card gets used for fraudulent transactions, those funds will be gone from your account until you get it resolved, which might take awhile.

          • When that happens, you'll want them to cancel that card and issue a new one. You'll be without access to any remaining funds in your account until that is resolved, which might take awhile. (Excepting in-person cash withdrawals or writing checks of course.)


          Credit card people have it a bit easier. Funds don't disappear from their account, their amount of available credit just goes down. They still have access to funds in their account via a debit card, they just might not be able to use their credit card for additional funds beyond that. So it's likely to be resolved before it affects them, as long as they have funds in their account. That mitigates the danger for them.



          I don't have a credit card. My solution is to carry a separate debit card for another account. If my primary gets compromised, I have my backup to last until it's resolved and vice-versa.



          My credit union is actually very good about proactively detecting and blocking fraud, though it's gotten past them a couple times. In those cases it only took a few days to get my money back, but it could take much longer - would you be ok if your account was empty for a month while you waited? I can also get a new card on the first business day that I can get into a branch - can you get yours that quickly or do you have to wait a couple weeks for them to mail you one? Even if you can, if weekends and holidays and travel and weather intervene and make it take awhile before you can get in, would you be ok without your card?



          Using a debit card isn't dangerous in itself, but you'll be in for a tough time if you're not prepared to deal without it for a bit. I recommend keeping a backup from a second account. That mitigates the danger.






          share|improve this answer








          New contributor




          user82972 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
          Check out our Code of Conduct.























            4












            4








            4







            The dangers are:




            • When (not if) your card gets used for fraudulent transactions, those funds will be gone from your account until you get it resolved, which might take awhile.

            • When that happens, you'll want them to cancel that card and issue a new one. You'll be without access to any remaining funds in your account until that is resolved, which might take awhile. (Excepting in-person cash withdrawals or writing checks of course.)


            Credit card people have it a bit easier. Funds don't disappear from their account, their amount of available credit just goes down. They still have access to funds in their account via a debit card, they just might not be able to use their credit card for additional funds beyond that. So it's likely to be resolved before it affects them, as long as they have funds in their account. That mitigates the danger for them.



            I don't have a credit card. My solution is to carry a separate debit card for another account. If my primary gets compromised, I have my backup to last until it's resolved and vice-versa.



            My credit union is actually very good about proactively detecting and blocking fraud, though it's gotten past them a couple times. In those cases it only took a few days to get my money back, but it could take much longer - would you be ok if your account was empty for a month while you waited? I can also get a new card on the first business day that I can get into a branch - can you get yours that quickly or do you have to wait a couple weeks for them to mail you one? Even if you can, if weekends and holidays and travel and weather intervene and make it take awhile before you can get in, would you be ok without your card?



            Using a debit card isn't dangerous in itself, but you'll be in for a tough time if you're not prepared to deal without it for a bit. I recommend keeping a backup from a second account. That mitigates the danger.






            share|improve this answer








            New contributor




            user82972 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.










            The dangers are:




            • When (not if) your card gets used for fraudulent transactions, those funds will be gone from your account until you get it resolved, which might take awhile.

            • When that happens, you'll want them to cancel that card and issue a new one. You'll be without access to any remaining funds in your account until that is resolved, which might take awhile. (Excepting in-person cash withdrawals or writing checks of course.)


            Credit card people have it a bit easier. Funds don't disappear from their account, their amount of available credit just goes down. They still have access to funds in their account via a debit card, they just might not be able to use their credit card for additional funds beyond that. So it's likely to be resolved before it affects them, as long as they have funds in their account. That mitigates the danger for them.



            I don't have a credit card. My solution is to carry a separate debit card for another account. If my primary gets compromised, I have my backup to last until it's resolved and vice-versa.



            My credit union is actually very good about proactively detecting and blocking fraud, though it's gotten past them a couple times. In those cases it only took a few days to get my money back, but it could take much longer - would you be ok if your account was empty for a month while you waited? I can also get a new card on the first business day that I can get into a branch - can you get yours that quickly or do you have to wait a couple weeks for them to mail you one? Even if you can, if weekends and holidays and travel and weather intervene and make it take awhile before you can get in, would you be ok without your card?



            Using a debit card isn't dangerous in itself, but you'll be in for a tough time if you're not prepared to deal without it for a bit. I recommend keeping a backup from a second account. That mitigates the danger.







            share|improve this answer








            New contributor




            user82972 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.









            share|improve this answer



            share|improve this answer






            New contributor




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            answered 14 hours ago









            user82972user82972

            411




            411




            New contributor




            user82972 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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            New contributor





            user82972 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.






            user82972 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.























                4














                Many years ago, I used a Visa debit card for all purchases. Then there was a fraudulent charge on the card; luckily, my bank spotted it and refunded it immediately.



                I asked them what I could do to protect myself in future: the bank said I should use a credit card instead, as that had much greater protection. (As other answers have pointed out, you have an opportunity to contest a charge on a credit card before you've paid it.  Credit card companies have a greater incentive to resolve any problems, as it's their own money at stake!  I believe there are other advantages, too.)



                One other advantage to using a credit card is that you build up a credit score — especially if you pay it off in full every month (as I do). Had I not started using a credit card back then, I might have had much more trouble getting a mortgage.






                share|improve this answer








                New contributor




                gidds is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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                  4














                  Many years ago, I used a Visa debit card for all purchases. Then there was a fraudulent charge on the card; luckily, my bank spotted it and refunded it immediately.



                  I asked them what I could do to protect myself in future: the bank said I should use a credit card instead, as that had much greater protection. (As other answers have pointed out, you have an opportunity to contest a charge on a credit card before you've paid it.  Credit card companies have a greater incentive to resolve any problems, as it's their own money at stake!  I believe there are other advantages, too.)



                  One other advantage to using a credit card is that you build up a credit score — especially if you pay it off in full every month (as I do). Had I not started using a credit card back then, I might have had much more trouble getting a mortgage.






                  share|improve this answer








                  New contributor




                  gidds is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
                  Check out our Code of Conduct.























                    4












                    4








                    4







                    Many years ago, I used a Visa debit card for all purchases. Then there was a fraudulent charge on the card; luckily, my bank spotted it and refunded it immediately.



                    I asked them what I could do to protect myself in future: the bank said I should use a credit card instead, as that had much greater protection. (As other answers have pointed out, you have an opportunity to contest a charge on a credit card before you've paid it.  Credit card companies have a greater incentive to resolve any problems, as it's their own money at stake!  I believe there are other advantages, too.)



                    One other advantage to using a credit card is that you build up a credit score — especially if you pay it off in full every month (as I do). Had I not started using a credit card back then, I might have had much more trouble getting a mortgage.






                    share|improve this answer








                    New contributor




                    gidds is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
                    Check out our Code of Conduct.










                    Many years ago, I used a Visa debit card for all purchases. Then there was a fraudulent charge on the card; luckily, my bank spotted it and refunded it immediately.



                    I asked them what I could do to protect myself in future: the bank said I should use a credit card instead, as that had much greater protection. (As other answers have pointed out, you have an opportunity to contest a charge on a credit card before you've paid it.  Credit card companies have a greater incentive to resolve any problems, as it's their own money at stake!  I believe there are other advantages, too.)



                    One other advantage to using a credit card is that you build up a credit score — especially if you pay it off in full every month (as I do). Had I not started using a credit card back then, I might have had much more trouble getting a mortgage.







                    share|improve this answer








                    New contributor




                    gidds is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
                    Check out our Code of Conduct.









                    share|improve this answer



                    share|improve this answer






                    New contributor




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                    answered 11 hours ago









                    giddsgidds

                    1411




                    1411




                    New contributor




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                    New contributor





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                        2














                        Federal law in the United States (as the OP mentions USAA) sets different requirements and limits on a user for reporting fraudulent use of a credit card versus a debit card. While as a matter of good customer service, a bank or card may hold you to $0 for the report of a fraudulent charge for either type of account, what they are required to do by federal law is different for each. In general the maximum liability a credit user has is $50. The maximum liability a debit card user can be unlimited.



                        From the Federal Trade Commission




                        Under the FCBA, your liability for unauthorized use of your credit card tops out at $50.



                        ...



                        If someone uses your ATM or debit card before you report it lost or stolen, your liability depends on how quickly you report it:



                        ...



                        More than 2 business days after you learn about the loss or theft, but less than 60 calendar days after your statement is sent to you, $500



                        More than 60 calendar days after your statement is sent to you. All the money taken from
                        your ATM/debit card acount, and possibly more; for example, money in accounts linked to your debit account.







                        share|improve this answer




























                          2














                          Federal law in the United States (as the OP mentions USAA) sets different requirements and limits on a user for reporting fraudulent use of a credit card versus a debit card. While as a matter of good customer service, a bank or card may hold you to $0 for the report of a fraudulent charge for either type of account, what they are required to do by federal law is different for each. In general the maximum liability a credit user has is $50. The maximum liability a debit card user can be unlimited.



                          From the Federal Trade Commission




                          Under the FCBA, your liability for unauthorized use of your credit card tops out at $50.



                          ...



                          If someone uses your ATM or debit card before you report it lost or stolen, your liability depends on how quickly you report it:



                          ...



                          More than 2 business days after you learn about the loss or theft, but less than 60 calendar days after your statement is sent to you, $500



                          More than 60 calendar days after your statement is sent to you. All the money taken from
                          your ATM/debit card acount, and possibly more; for example, money in accounts linked to your debit account.







                          share|improve this answer


























                            2












                            2








                            2







                            Federal law in the United States (as the OP mentions USAA) sets different requirements and limits on a user for reporting fraudulent use of a credit card versus a debit card. While as a matter of good customer service, a bank or card may hold you to $0 for the report of a fraudulent charge for either type of account, what they are required to do by federal law is different for each. In general the maximum liability a credit user has is $50. The maximum liability a debit card user can be unlimited.



                            From the Federal Trade Commission




                            Under the FCBA, your liability for unauthorized use of your credit card tops out at $50.



                            ...



                            If someone uses your ATM or debit card before you report it lost or stolen, your liability depends on how quickly you report it:



                            ...



                            More than 2 business days after you learn about the loss or theft, but less than 60 calendar days after your statement is sent to you, $500



                            More than 60 calendar days after your statement is sent to you. All the money taken from
                            your ATM/debit card acount, and possibly more; for example, money in accounts linked to your debit account.







                            share|improve this answer













                            Federal law in the United States (as the OP mentions USAA) sets different requirements and limits on a user for reporting fraudulent use of a credit card versus a debit card. While as a matter of good customer service, a bank or card may hold you to $0 for the report of a fraudulent charge for either type of account, what they are required to do by federal law is different for each. In general the maximum liability a credit user has is $50. The maximum liability a debit card user can be unlimited.



                            From the Federal Trade Commission




                            Under the FCBA, your liability for unauthorized use of your credit card tops out at $50.



                            ...



                            If someone uses your ATM or debit card before you report it lost or stolen, your liability depends on how quickly you report it:



                            ...



                            More than 2 business days after you learn about the loss or theft, but less than 60 calendar days after your statement is sent to you, $500



                            More than 60 calendar days after your statement is sent to you. All the money taken from
                            your ATM/debit card acount, and possibly more; for example, money in accounts linked to your debit account.








                            share|improve this answer












                            share|improve this answer



                            share|improve this answer










                            answered 6 hours ago









                            user662852user662852

                            5,1091921




                            5,1091921

















                                protected by JoeTaxpayer 57 mins ago



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