5 Places Never to Use Your Debit Card

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5 Places Never to Use Your Debit Card

Posted August 24, 2011

<snip>For example, using a debit card online can work against you. If you have a problem with the purchase or your debit card number is stolen, it’s a huge hassle to get the money restored to your account and making your card number safe and secure again. In the online world, credit cards are usually a better bet.

Here are some other instances where debit card usage is a bad idea:

Rental or security deposits. If you have to put money down to rent a car or heavy duty home improvement equipment, try not to use a debit card. Why? Because the business will actually take the money out of your account in the form of a security deposit. You’ll get the cash back when you return the car or equipment. But with a credit card, the money is just “frozen” but not actually charged and you won’t ever notice it’s gone.

Restaurants and bars. There are way too many prying eyes around a dining establishment to trust using your debit card. Apart from the risk of having your card stolen, restaurants are one of those rare places where someone actually walks away with your card and you don’t see them for a few minutes. Much better to use cash when dining out.

[WilmywoodNCparalegal]

1. Bullcrap

That's what the credit card lobby would have you think. I've been using my debit card (which I have had both through a big bank and my current credit union) for at least 6 years for rentals, hotels, reservations, etc. without any problems whatsoever. I have had to dispute a couple of charges and in each instance I never had a problem getting a refund or other resolution.

Again, this is a credit card company meme that is getting tired and old. With a debit card, the money is taken out immediately - there's no need to repay anyone WITH INTEREST. With a debit card, I can only buy what I can afford and it keeps me checking my account everyday, unlike a credit card. My debit card has my picture on it and a chip inside.

The argument that someone can steal your information when in a restaurant is also true for a credit card. To date, it hasn't happened yet and, if it did, I wouldn't have problems getting it resolved.

I don't care that money is taken out for rentals and then returned, whereas with a credit card I don't even notice it's gone. That's precisely why we're in the mess we're in - I don't want to forget where my money goes... au contraire! I want to know where it goes. The arguments made by the credit card lobby are fallacies at best.

[Kali]

2. the one thing I think is different

at least for me - the visa credit card covers more insurance on a car rental

[jberryhill]

3. I've had a few "auth holds" last a while on debit cards

That can be annoying, and it may be surprising to people who aren't aware of the holds and don't have enough headroom in the underlying account.

[Boojatta]

4. If you were George Burns, what would you say about an alleged link between smoking and lung cancer?

[RebelOne]

5. Yes, you are correct in all that you say.

I have used my debit card for all purchases for over 15 years now and have never had any problem. In fact, once I was in a hurry and forgot to remove my card from the ATM. When I realized it was missing, I called the bank. The bank reported that $100 had been taken from my account. So it must have been the person who was in back of me. But the bank reimbursed me the $100. And this is the hated Bank of America (at least for many here).