Will that be Debit or Credit?

debt-card-swipe

Most financial writers would recommend purchasing items using a bank debit card or cash instead of a credit card to control impulse buying. A debit card transaction will allow the vendor to take money right out of your bank account. It is so quick, you can see the transactions appear on your online bank statement minutes after your card has been swiped. This is good advice because spending money that you don’t have can lead to accumulating a lot of unnecessary debt.

However, my only problem with using a debit card or cash is security. Lose your wallet or purse and kiss the cash good-bye. If thieves get a hold of your debit card, the bank will not cover your loss. I am fortunate that the credit card companies in Canada have all adopted chip technology with a 4-diget Pin number for added security. Plus most retail stores even have a tap option for purchases under $100.00, so tap and go is quick and easy.

My decision to always use credit over debt, just saved me $1,470.67 because my wife’s credit card was recently compromised. The thief was very smart, only one big transaction which the credit card company didn’t red flag as an unusual purchase. I always check my monthly statements and recognized the bogus charge immediately. This is the third time in less than ten years that I have had to get a new credit card due to fraud.

The previous two times, the credit card company called me after they noticed some unusual activity. Although, it was a little embarrassing to have my credit card purchase declined but it is better than losing money. My experience with credit card fraud has made me into a frantic when it comes to making sure that I don’t lose any credit card receipts. I always cross-reference the receipt with my monthly statement. We even record each on-line purchase on a separate piece of paper and file it with the rest of our receipts.

Thieves have become very bold! I received a phone call at 6:00 a.m. from someone pretending to be from my credit card company. He stated that my credit card may have been compromised and requested that I should turn on my computer to check my debit card transactions. He wanted to get access to my banking information. Warning bells went off in my sleepy head. What the thief didn’t know was that credit card and debit card were with two different banks.

Protect yourself from fraud

  • Use a credit card for all your on-line purchases for added protection
  • Keep your receipts and check your monthly credit card statements
  • Hang up on questionable phone calls and call your financial institution
  • Use a pin number that doesn’t have any personal dates, like your birthday
  • Change your pin number from time to time
  • Share with family and friends information on current scams in your area

What is your answer to the question? Will that be debit or credit?

 

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3 thoughts on “Will that be Debit or Credit?

  1. I had a rough relationship with credit but we worked through it and I clawed my way out of debt.
    Now that I have a better relationship with my money I use my credit card for everything. I check it online weekly so I can query things immediately and pay my credit card balance weekly as well. This way I’m not falling back down the debt hole but being safe and accruing some pretty great points for Christmas!

    Liked by 1 person

  2. We have no answer to the question. Whatever is most convenient at that time.
    Online we often go for PayPal with the credit card. In store it depends on the value. Bigger items tend to go via the credit card and are repaid in full at the end of the month. The reason is that such items come mostly out of the life happens find and that is a savings account
    In Belgium, both cards require pin and the tap and go is not common yet. I am not sure I would activate it.

    Liked by 1 person

  3. The benefits of using a credit card far out weigh those for using a debit card.

    I almost exclusively use credit because under law, personal liability for fraudulent charges on a credit card can’t exceed $50. But if a debit card is used fraudulently, one could be liable for $500 or more. Plus, credit cards are credited immediately once you notify them of the fraudulent charges. One can also set alerts for any purchase over a certain amount with credit cards.

    I recently had my Amex account notify me with about 20 “safekey” emails. All of which happened within 10 minutes. This “safekey” is actually a code sent to my email to verify an attempted online purchase. Obviously it was a fraudulent attempt, multiple times, and fortunately my online account was not compromised, so no harm no foul, but I did contact their online fraud prevent team to put my account on watch just in case.

    You just can’t get that kind of service and protection with a debit card.

    Like

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