Why you should never use your debit card?

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asked Dec 4, 2021 in Other-Finance by Lakopousfox (1,030 points)
Why you should never use your debit card?

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answered Dec 5, 2021 by Rundranite (630 points)
The reason you should never use your debit card is the debit card can easily be stolen and duplicated through use of skimmers.

Skimmers can get your debit card information and your card number can be saved and then your money can be removed without the use of your PIN number.

However it's okay to use your debit card but you should watch where you do use the debit card to be safe.

Avoid using the debit card at shady ATM machines, at the gas pumps, in shady looking stores and when away from home.

Debit cards, which are tied to your checking account, let you make purchases while avoiding the interest charges you might face if you use a credit card.

Your checks start bouncing and, depending on your bank or credit union, the institution may not cover the bounced check charges that result from debit card fraud.

Credit cards are safer to use than debit cards because credit cards are not tied to your bank account and you're using other peoples money and then paying it back.

Using a debit card you're using your own money and it's tied to your bank account so if someone gets your debit card or debit card information they can take money out of your bank account and may completely drain your bank account.

But with a credit card your bank account is not accessible to the person who has or had your credit card.

A credit card is safer to use than a debit card because with a credit card you have better fraud protection and you're using someone else's money and not your own.

The credit card is also not linked to your bank account so the money in your bank account cannot be accessed or drained.

Hackers can get your debit card number online by hacking into the servers that process your debit card transactions and also hacking into your bank account etc.

Also hackers can get your debit card number by skimming the debit card number using debit and credit card skimmers.

Skimmers are electronic devices, usually placed on ATMs or the card readers on gas pumps.

When you place your card into the reader, it passes through the skimmer, allowing the device to capture your account information.

Someone can use your debit card without your PIN number.

All a person needs is your debit card and a debit card machine to swipe your debit card and make a transaction for the amount they want to remove from your account.

Fraudsters can still use your debit card even if they don't have the card itself.

They don't even need your PIN—just your card number.

If you've used your debit card for an off-line transaction (a transaction without your PIN), your receipt will show your full debit card number.

You can withdraw money from a cardless ATM machine without your card.

Cardless ATMs provide access to your account and allow you to withdraw cash without the need for a physical card.

Instead, cardless ATMs rely on account verification via text message or a banking app on your smartphone.

You should never use your debit cards at a gas pump, isolated ATM machines, on vacations, for recurring payments and checkouts or ATM machine locations that look off.

The recent rise of "skimmers" have made many consumers think twice about using their debit cards when making purchases.

Especially at places like the gas pump, or even online.

The answer is quite simple. Yes, debits cards are secure and have many safety benefits over both cash and credit.

The risks of using a debit card include fraud, limited fraud protection and if someone gets your debit card and they have your PIN number they could easily drain your bank account.

Your spending limit depends on your checking account balance.

They may cause overdraft fees.

They don't build your credit score.

The disadvantages of using a debit card are.

You can't charge purchases with a promise to pay later: One of the benefits of credit cards is that you can make charges now with a plan to pay off the balance later.

This can be helpful when you're faced with unexpected costs, such as travel or medical expenses, or essential car repairs.

Credit cards offer flexibility to help you afford these purchases in the moment—but with a debit card, you can only cover those charges if the funds are in your bank account.

Large purchases can be a hassle: Some debit cards have spending limits that can complicate efforts to make large purchases.

If you want to purchase a $500 piece of furniture but only have a $300 daily charge limit, you will need your debit card issuer to lift this restriction to clear your purchase.

This may involve making a call to your credit union to have the charge authorized.

If you forget your PIN, you could be in trouble: Because your debit card's PIN number is required for ATM withdrawals and charged purchases, the loss of your PIN could render your card unusable.

Depending on the recovery process for your PIN, it could take days to be recovered, or for a new PIN number to be assigned to your account.

If you overspend, you could get hit with costly overdraft fees: If charges to your debit card cause your checking account balance to go negative, you could suffer overdraft fees and other steep charges that far exceed the potential costs of using a credit card.

One option to prevent over drafting is to sign up for overdraft protection through your credit union.

If you don't use your debit card then you will usually be charged an inactivity fee for your debit card.

Even if you use the debit card once or twice per month it's good enough to keep the inactivity fee from being charged.

You may be charged an inactivity fee if you do not use your card for a certain period of time.

Prepaid card providers generally charge either a monthly fee or an inactivity fee, but not both.

Remember, if your provider charges a monthly fee, you will continue to be charged this fee even if you're not using your card.

Paying by debit card is better as it's faster than writing out a check.

A debit card is comparably safer, as long as you take a few basic precautions and if fraud does occur, as long as you catch it quickly you can count on being reimbursed.

A debit card is linked to your bank account.

When you use your debit card the debit which is linked to your checking account deducts the money from your checking account.

The payment goes through a payment or credit card processor and through servers which then reach your bank.

Then an interchange fee is charged which is paid to the bank.

Money is deducted instantly in most cases from your bank account when you make a debit card purchase.

When you open a checking account at a bank or credit union, you usually get a debit card.

A debit card lets you spend money from your checking account without writing a check.

When you pay with a debit card, the money comes out of your checking account immediately.

There is no bill to pay later because unlike with a credit card you're using your own money for the purchases.

Banks make money on debit card transactions and they do so through interchange fees that are charged within the purchase price of the item you've bought with the debit card.

For example you buy something for $100.00 with your debit card.

The store would pay an interchange fee of $2.15.

The store keeps $97.85 of the purchase price, and the $2.15 interchange fee goes to the bank that provided you with the credit or debit card.

When you use a debit card or credit card there are processing fees that are charged and are hidden in the purchase price of the item.

A debit card is called a debit card because when you use the debit card it can have a negative affect on your account balance of your bank account.

When the debit card is used for purchases you decrease the balance in your account or debit from it.

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