Important Facts About Debit Cards
With credit getting tighter some people may be turning to debit cards more frequently to pay for their goods and services. There is certainly nothing wrong with that, and in truth, it may be a smart decision. While theft and unauthorized use is possible for both credit cards and debit cards there are some differences that are worth taking a look at.
Because debit cards are tied directly to your bank account, would-be thieves can steal all the funds in your account. It is important to report debit card fraud as soon as it happens. Most banks will protect your funds but it is strictly voluntary. They are in no way obligated by law to do so. If losses are not reported within 60 days they can be unlimited. If they are reported within two business days then you should be 100% covered from liability.
Credit cards are a different story. They enjoy a much higher dgree of protection compared to credit cards. Credit cards, by federal law, limit the amount to $50 from theft and fraud. Still in all, carrying a debit card is safer than carrying cash and you can use for just about anything you would use a credit card for, without incurring interest charges for revolving credit.
I personally use a debit card quite often. My safeguard, and what I strongly advise, is to go online and check your bank account each and every day to make sure you are not a victim of theft. If you do spot unauthorized activity report it immediately. Doing this will greatly decrease your liability and insulate you from substantial losses.
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