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The April 2012 issue of ShopSmart, published by Consumer Reports, points out five scenarios that can get consumers in trouble when using their debit card. The story made me realize I’ve become careless. I summarize the dos and don’ts of staying safe when you use a debit card below. How do you keep safe when using your debit card?
The dont’s.
- Using your debit card for big online purchases. Guilty! Though, I’m not making big purchase. I recently bought a subscription to Bon Appetit and used my debit card. I haven’t received the mag and it’s been a while. A credit card gives you more protection and they can intervene when things go wrong. We’ve told you before that your liability for fraudulent charges on your credit card is lower than debit cards. You can lose up to $500 using a debit card if you don’t report the theft or loss of your card within two business days. Yikes!
- Using your debit card at a restaurants. Since the use of debit cards increased, I’ve heard many stories of people getting their card information stolen while dinning at restaurants. The reason is because you hand your card to a stranger and don’t know what’s going on when they leave the table.
- Don’t use an obvious PIN. I know, I know. You’ve probably heard this before, don’t use your birthday as your PIN. But how long has it been since you’ve changed it? Change it regularly.
The dos.
- Save receipts. Double check that the amount is accurate when your statement arrives. Pounce on errors to correct them.
- Sign up for online banking. I have my banks app on my iPhone and it lets me track every purchase at real time. I don’t have to wait for my statement to arrive to check for errors.
- Use your banks ATMs only. Not only will this help you cut down on the bank fees, but it cut’s down the risk of getting your info stolen.
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Welcome to Bargain Babe! I’m Mara, and I’m so glad you’re here. I am an obsessive bargain hunter and penny pincher, and I am determined to live a full life without EVER paying full price.
When using your debit card at a gas station, you should always run it as credit instead of debit. If you run it as debit some gas stations put an immediate hold of up to $120 on your account. The actual amount may not go though for up to 2 days. This means if you do not have enough overage in your account another transaction my come through in between the times that could cause you to be declined, have a check bounce, or be charged over limit fees.
This is a fact that I was not aware of until I started working at a bank. It is not the banks fault, it is the business that you are purchasing from that causes this to happen.
Excellent article! I learned more I diidn’t know than I could have imagined. I am very guilty of breaking lots of rules and have been lucky. I won’t press my luck and plan on protecting my finances better.
I’ve never used a debit card or an ATM in my enitre life. Best advice is to never start.
@markeitia ledbetter That’s good to know! A while back there was a lot of noise about people getting scammed at gas stations when they used their debit cards.