Using your debit card is usually easy and quick, but there are times when it’s not the safest choice. Debit cards are tied directly to your bank account, which means if something goes wrong, like fraud or theft, your money could be at risk right away. Credit cards offer more protection in these situations, so knowing when not to use your debit card can save you a lot of trouble.
Let’s talk about 7 places where it’s better to avoid using your debit card to keep your money safe.
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Gas Stations
Gas stations can be risky for using debit cards because they’re common targets for skimming devices. These tiny devices can be attached to card readers without anyone noticing, and they steal your card information when you swipe. Since your debit card is directly connected to your bank account, any unauthorized transactions can rapidly deplete your funds. To be safer, it’s better to use a credit card or cash when you’re at the pump.
Online Shopping
Using a debit card for online shopping carries a higher risk of fraud than using a credit card. Even though most websites are secure, some aren’t, and if your card information gets stolen, it’s your bank account that takes the hit. This can leave you without access to your money until things get sorted out, which can take time. Using a credit card instead gives you more protection, making it easier to dispute any unauthorized charges.
Restaurants
When you hand over your debit card at a restaurant, you’re letting someone else take your card out of your sight, which isn’t always safe. There’s a chance that your card information could be copied without you knowing. Since debit cards are tied directly to your bank account, this could mean trouble if your details are misused. To avoid this risk, it’s better to pay with cash or a credit card, which offers more security against fraud.
Public Wi-Fi Networks
Using your debit card while connected to public Wi-Fi can be a bad idea. Public Wi-Fi networks often aren’t very secure, and hackers can easily intercept your data, including your card information. If you make a purchase or check your bank account on a public network, you could expose your details to cybercriminals. It’s safer to wait until you’re on a secure, private network before using your debit card online.
ATMs in Unfamiliar or Isolated Areas
ATMs in places you’re not familiar with, or in isolated areas, can be risky because they’re more likely to be tampered with. Criminals might install skimming devices or hidden cameras to steal your card information and PIN. If your details are stolen, they can quickly access your bank account and withdraw your money. To stay safe, it’s best to use ATMs that are inside banks or in well-lit, busy areas.
Traveling Abroad
Using your debit card while traveling abroad can be tricky. Foreign ATMs and payment systems might not be as secure, which increases the risk of fraud. Plus, if your card gets lost or stolen while you’re away, it can be hard to get access to your money. Some banks also charge foreign transaction fees, which can add up. Using a credit card with no foreign fees or carrying local currency can be a safer and cheaper option.
Subscription Services
Using your debit card for subscription services might seem convenient, but it can cause issues later. If you forget about a subscription or have trouble canceling it, the charges will keep coming out of your bank account. Unlike a credit card, if your debit card gets compromised, canceling it can be a hassle and disrupt your access to funds. It’s usually better to use a credit card for subscriptions, so you have more control and protection.
Disclaimer – Million Dollar Sense does not provide and does not intend to provide financial, investment, tax, or legal advice. Information contained in this article is for informational and educational purposes only. This list is solely the author’s opinion based on research and publicly available information. The inclusion of links to third-party content is not an endorsement by Million Dollar Sense of such content or services. Use your discretion.
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