12 Reasons Your Debit Card Is a Risky Choice for Online Purchases
Security concerns: Debit cards do not offer the same level of protection against fraud and unauthorized transactions as credit cards do.
1
No purchase protection: Credit cards offer purchase protection and the ability to dispute charges, but debit cards do not.
2
No reward points or cashback: Many credit cards offer reward points, cashback, or other incentives for using them. Debit cards typically do not offer any rewards.
3
Limited liability protection: Federal laws limit your liability for fraudulent charges on a credit card to $50, but debit cards have different rules and your liability may be greater.
4
Delayed refunds: If you return an item purchased with a debit card, the refund may take longer to process than if you used a credit card.
5
Overdraft fees: If you accidentally overspend your account balance with a debit card, you could be hit with costly overdraft fees.
6
High interest rates: Some debit cards charge high interest rates on purchases, making them an expensive option for borrowing money.
7
Limited credit building: Using a credit card responsibly can help build your credit score, but debit card use does not have the same effect.
8
Inconvenient holds: When you use a debit card for a hotel or rental car reservation, a hold is placed on your account for the full amount of the reservation.
9
Risk of multiple payments: When making a purchase with a debit card, the merchant may put a hold on the funds before the final transaction goes through, potentially resulting in multiple charges.
10
No price protection: Some credit cards offer price protection, allowing you to receive a refund if the price drops after you make a purchase. Debit cards do not offer this protection.
11
No travel benefits: Many credit cards offer travel benefits such as airline miles, free checked bags, or access to airport lounges. Debit cards do not typically offer any travel benefits.