Is a debit card dangerous in my situation?
I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.
I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indidcated there is fraud protection on my card, if it should be stolen and used to make purchases.
debit-card
asked 3 hours ago
horse hairhorse hair
1,80521730
add a comment |
I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.
I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indidcated there is fraud protection on my card, if it should be stolen and used to make purchases.
debit-card
asked 3 hours ago
horse hairhorse hair
1,80521730
"I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"
– BruceWayne
6 mins ago
add a comment |
I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.
I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indidcated there is fraud protection on my card, if it should be stolen and used to make purchases.
debit-card
asked 3 hours ago
horse hairhorse hair
1,80521730
I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.
I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indidcated there is fraud protection on my card, if it should be stolen and used to make purchases.
debit-card
debit-card
asked 3 hours ago
horse hairhorse hair
1,80521730
asked 3 hours ago
horse hairhorse hair
1,80521730
asked 3 hours ago
horse hairhorse hair
1,80521730
asked 3 hours ago
horse hairhorse hair
1,80521730
asked 3 hours ago
horse hairhorse hair
1,80521730
1,80521730
"I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"
– BruceWayne
6 mins ago
add a comment |
"I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"
– BruceWayne
6 mins ago
"I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"
– BruceWayne
6 mins ago
"I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"
– BruceWayne
6 mins ago
add a comment |
2 Answers
2
active
oldest
votes
The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.
If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.
So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.
answered 3 hours ago
ToddTodd
1,403611
add a comment |
Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.
answered 3 hours ago
user73552user73552
1212
add a comment |
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2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.
If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.
So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.
answered 3 hours ago
ToddTodd
1,403611
add a comment |
The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.
If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.
So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.
answered 3 hours ago
ToddTodd
1,403611
add a comment |
The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.
If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.
So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.
answered 3 hours ago
ToddTodd
1,403611
The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.
If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.
So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.
answered 3 hours ago
ToddTodd
1,403611
answered 3 hours ago
ToddTodd
1,403611
answered 3 hours ago
ToddTodd
1,403611
answered 3 hours ago
ToddTodd
1,403611
1,403611
add a comment |
add a comment |
Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.
answered 3 hours ago
user73552user73552
1212
add a comment |
Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.
answered 3 hours ago
user73552user73552
1212
add a comment |
Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.
answered 3 hours ago
user73552user73552
1212
Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.
answered 3 hours ago
user73552user73552
1212
answered 3 hours ago
user73552user73552
1212
answered 3 hours ago
user73552user73552
1212
answered 3 hours ago
user73552user73552
1212
1212
add a comment |
add a comment |
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"I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"
– BruceWayne
6 mins ago