Is It Safer to Use My Credit Card Rather Than My Debit Card?

The venue for the use of credit or debit cards plays a large part in the safety of using either method. Point-of-sale (POS) purchases compared to online, telephone or mail order transactions play a major role in the safety of using your credit card rather than your debit card. Evaluating your usage needs will help you determine quickly which is the safer card to use for your purchase.

Most POS transactions offer you control at the time of purchase. If you swipe the card yourself, you are in total control of the purchase. However, your control lessens if the merchant swipes the card even though you are present to view the merchant's actions at the time of sale. There is less likelihood of any unauthorized charge(s) from taking place. In fact the greatest risk for an unauthorized charge happens at places like restaurants when the merchant leaves your sight with your card. For face-to-face POS transactions debit cards and credit cards are almost equally safe. Consequently, for POS transactions in which the merchant leaves your sight with your card, your credit card is safest. Even though most associations offer zero liability for unauthorized purchases, it may take weeks for funds to be credited back to a debit card. Credit card issuers will place a credit on your credit card account in the amount of the unauthorized charge while they dispute the transaction with the merchant. This means you still will have the funds to use. Unfortunately, this process is not offered for debit cards.

Online, telephone and mail order transactions pose similar risks as the non face-to-face POS transactions. In addition, your card information can be stolen in either of these venues without your knowledge. Unscrupulous merchant employees may retain a personal record of your credit information and mail handlers can have access to your card information and retain it. For online sales, hackers can access your card information. In the last few years a malware program called Antivirus has infiltrated many PCs. Antivirus 2009 redirects your browser window with a message that it is scanning your PC, however it is actually storing viruses on your PC in an effort to get you to download the fake antivirus software. Once downloaded the malware becomes a virus that views your financial data and passwords to your financial accounts and transaction information. Such clever schemes to steal card data make credit cards the safer method of payment for ease of fraud correction. Stolen credit card information can be handled by closing the current card number and issuing another. For debit cards, the closure of the bank account and issue of a new one is required. Prepaid debit cards can also be handled with the closing of the old card and issuing of a new one.

Merchant disputes are another factor that determines the safety of credit card usage versus debit card usage. Debit cards only allow for disputing unauthorized transactions. Unfortunately, there are times when a merchant does not deliver goods or services, sells you something different than what was advertised or sells damaged merchandise. In cases like these, debit cards offer no avenue of dispute to rectify such matters. Credit cards offer buyer safety for most delivered purchases.

Credit cards are the safer purchase method. Though if you only plan on face-to-face POS transaction, then debit cards are ideal for ease of knowing that the service or goods is already paid. Make an informed decision after weighing the safety issues associated with credit and debit cards. At the end of the day, you have to weigh the pros and cons in relation to how the use of each card works for your lifestyle.