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Old 06-12-2019, 09:05 AM
seannx seannx is offline
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Join Date: Feb 2010
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Quote:
You have to be careful with debit cards and I would advise not to use one at all. If your debit card gets stolen or hacked, they draw directly from your bank account without any buffer. Credit cards have fraud alerts and won't hit you at all if you get it right away.
I had a similar thing happen to me with our company debit card. Someone bought a very expensive international air ticket - in Austria - that left the account overdrawn. I immediately added more money and got on the phone with my bank. They reversed the charge, but while I was on the phone (for at least 40 minutes), another charge was made. I had to fill out forms on that one. On my bank rep's advice, I switched to credit cards afterwards. All are set to send me a text notification when charges are made.

As quoted above, with debit cards the money comes right out, potentially leaving you liable for overdraft charges, if a check or another transaction posts afterwards and there aren't sufficient funds. Even attempting a purchase with a debit card, which for some reason doesn't go through, can create an authorization that holds that amount, and can place your balance in jeopardy. It will fall off in a few days, but until then will show up as a transaction. Some banks will realize this and not assess overdraft charges, but others don't, and will need to be called right away. So if you must use a debit card, check the balance and transactions daily. And better, switch to a credit card, paid off in full each month. With some cards, there are other benefits, like theft and loss protection for purchases, vehicle damage insurance included on car rentals, etc.
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