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Justin Pritchard

Debit Card and Credit Card Risks

By , About.com GuideMay 18, 2011

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Is a credit card safer than a debit card?  In some cases there's very little difference.  However, credit cards have advantages often that make them a better choice than debit cards for everyday use.

When somebody steals your debit card number, they have direct access to your checking account.  That's the account you use to pay bills, and it's important to protect the account.  If you can't make mortgage or insurance payments, other problems can follow.  Even if your account is protected against fraud, it can take a while for the bank to clear things up and return funds to your account.

When a credit card is used fraudulently, it doesn't instantly drain your checking account.  Credit cards also have more consumer protection.  MarketWatch's Andrea Coombes reports that about 44% of banks offer zero liability protection on debit cards, while all credit cards enjoy some protection.

For more information, and ideas on how to use your debit card safely, see Coombes brief video on how credit cards can be safer.

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