When Should We Not Use Debit Cards
November 20th, 2010 | 
Author: 
If this information doesn’t directly change the way you use your bank card, it will definitely make you more aware. It was suggested that we DON’T use debit cards for big purchases. They don’t offer the same protection that credit cards do. The regulations that govern the lenders allow you to reverse or dispute charges, and many have even extended the length of warranties.
When you use a credit card, your liability for unauthorized charges is capped at $50, no matter what. If your debit card is lost or stolen, it must be reported within two business days to limit liability to $50 and if it is lost or stolen and not reported between the two business days and within 60 days, the liability can go up to $500. If an unauthorized transaction is not reported within 60 days of the statement date (and the card hasn’t been reported lost or stolen), you’re on the hook for charges made after the 60th day until the report is made. DON’T use a debit card online.
Now here is the one which will scare you the most. DON’T link your debit card to an account with a lot of money, which is normally your primary account. Thieves can empty your debit-card-linked checking account, so keep just enough in the account to cover current purchases.
Here is what you can do — DO click on “credit” and sign for payments instead of giving a PIN. It appears that card companies might extend the same zero-liability protection to debit cards as they do to credit cards if the cards are processed similiar to credit, but PIN transactions might not have that protection.
So, we need to start managing our use of debit cards much smarter just like we do our credit cards.
Posted in Debit Card Protection | 
Tags: Credit Cards, Debit Card, Debit Cards, Lenders, Liability Protection, Thieves, Unauthorized Charges, Warranties