Credit vs. Debit Card – Which is Safer?
In today’s economy, the average consumer will have more than two credit cards. They will use them to pay bills, shop online and even just store them at home for a rainy day. As a consumer, the use of a credit card means you can purchase an item that day and not have to worry about physically paying for it until the end of the billing cycle, but when you use your debit card, you have to pay for what you buy immediately. When it comes to protecting yourself against identity theft, which is the better card to use? Here we compare the two:
Credit Cards
Credit cards are issued by banks that give the consumers the ability to buy goods or services and not have to pay for them until the billing cycle finishes. Consumers can also get major credit cards from local retailers such as home goods stores or even online shopping sites. In order to get a credit card, a consumer must apply for a line of credit through the creditor. A credit card also allows consumers the ability to dispute charges that appear on their statements.
In the event a consumer’s credit card information is stolen and used fraudulently, the maximum amount they can be held liable for is $50.00 per card if they notify the creditors within 60 days of the cards information being stolen. They then cannot be held responsible for any charges that are placed on the credit card during that fraudulent period.
ATM/Debit Cards
An ATM or debit card is also a card that is issued by a bank to consumers, but instead of having to apply for a line of credit, they simply open a bank account and purchases made on their cards will be automatically debited from their bank accounts. A consumer can use an ATM card to remove cash from the ATM 24 hours per day and they will have the option to access their bank cash at anytime.
In the event a consumer’s debit card is stolen, the recovery is a little more painful. A consumer will be held up liable for up to $500.00 in charges if they do not report the card stolen within two business days.
Therefore it is no wonder that experts advise consumers to use a credit card whenever possible. Since recovery from credit card theft is easier and less expensive than that of a debit card, consumers can dispute the charges and get back on with their lives without worrying about losing up to $500.00 of their own money.