Debit cards

[StephenL429439]

Good Morning,

I have a debit card that I use for certain purchases.  The reader will ask me if I want to use it as a debit card or credit card?

Is one way safer than the other as far as fraud goes?

Thank you,

Steve Leccese

[GailL1]

The US Treasury Office of the Comptroller of the Currency has a lot of good info on their site about all kinds of banking, currently and credit and debit cards and related problems and laws.

OCC.treas.gov - Credit Card and Debit Card Fraud 

[GailL1]

@StephenL429439 

A credit card is always safer than a debit card for several reasons.

1.  a debit card takes the money for whatever the purchase directly out of your bank account whereas a credit card goes to your credit card account and then is billed to you on a monthly basis.

2.  there are certain consumer protections built into using a credit card that were brought about by the Fair Credit Billing Act.  As long as you follow the directions for disputing a charge, the credit card company has to hold off on collecting it until the matter has been resolved with the merchant.  There is a specific routine you have to follow to have this apply and your credit card company has it posted on the statement whether online of in a mailed paper form.

3.  The same law limits your liability on a credit card for fraudulent purchases

4.  Nowadays with all the technology, you can sign up to know exactly what is going on your credit card either by text or email.  

5.  By paying off your revolving credit in full each month, it builds your credit. 

6.  another great advantage of a credit card with cashback or rewards points is that you can get these bonuses.  With some of these cashbacks being several %, you actually earn while you buy and can use this card cashback just like money or points if that is the way the card issues them.

As a disclaimer, I have never used a debit card so I can't speak of them too much - i use my cashback credit cards for everything. 

To each their own 

[papawofboo]

Might want to check with bank on that. I'm not sure that the credit card rules applies to a debit card when it is run as a credit card. I thought the only advantage for doing that was not having to use pin and it took 2-3 days to come out of account.

I only use debit card to get cash out of atm. So many credit cards now are giving you reward points for each $ and also have cash back offers on 50-60 companies at any given time. If you can pay off each billing cycle then you are turning the table on them

[Winter2025VA]

Papaw @papawofboo , WHY is this being allowed? The whole reason I had gotten a Debit Card from my bank INSTEAD of a Credit Card was the PIN.  😭

Anyway, it is what it is and now to hope no one steals my Debit Card.

Take care,

Nicole  👵  

---

[*** @papawofboo wrote 3/22/25:

Might want to check with bank on that. I'm not sure that the credit card rules applies to a debit card when it is run as a credit card. I thought the only advantage for doing that was not having to use pin and it took 2-3 days to come out of account. ***]

---

[papawofboo]

Do you get asked which way to use it when you check out? I don't think all the machines ask or give you a choice. Like Gail I don't use mine except to get cash at an atm.

Again check with your bank on what they will do for you if someone gets your card. Like she said the credit card is the safest, I never understood that law. I use the credit card because of the the rewards and cash back. That's how I pay for my plants and bird food. 

[GailL1]

@papawofboo wrote 

I have never had a debit card nor have I ever used an ATM.

Rewards and Cashback are great.  I get these for everything I purchase and most big bills that I pay like all my insurances - auto/homeowners/ liability - that’s over $4K a year and I pay it by year so that is great for Cashback - like one is getting a discount on the insurance.  

What happens to a debit card when it is skimmed?  

FBI.gov - SKIMMING 

Skimming occurs when devices illegally installed on or inside ATMs, point-of-sale (POS) terminals, or fuel pumps capture card data and record cardholders' PIN entries. Criminals use the data to create fake payment cards and then make unauthorized purchases or steal from victims' accounts.

Nowadays, text messages can be sent to alert the card owner of a transaction.  If it isn’t your purchased, you can decline it and then stop all activity on the card - can you do that with a debit card?  I don’t know cause I have never had one.

[papawofboo]

I miss read your post about having a debit card. Sorry.

As for the skimming, the atm and gas pumps I use have a sticker on them stating that any illegal entry will sound an alarm and lock the machine down. I don't know if it's true or not.

Anyway more and more I am using my phone to pay for stuff and they tell that is the safest. I firmly believe that if a man can devise a system, then a man can get around it.

[Winter2025VA]

Papaw @papawofboo , interesting. Is there a way to AVOID dealing with a HUMAN when paying via phone?  🤔

In the past, this was the ONLY way for me several years ago. I NO longer do the phone due to having had to give a HUMAN my Debit Card Number and the numbers that I guess proves it is your card.  🤔  This human can use my info to buy stuff.  😱

I pay my electric, insurance, rent, car taxes, tag, drivers license and so on ONLINE.

Take care,

Nicole  👵

---

[*** @papawofboo wrote:

I miss read your post about having a debit card. Sorry.

As for the skimming, the atm and gas pumps I use have a sticker on them stating that any illegal entry will sound an alarm and lock the machine down. I don't know if it's true or not.

Anyway more and more I am using my phone to pay for stuff and they tell that is the safest. I firmly believe that if a man can devise a system, then a man can get around it. ***]

---

[papawofboo]

I'm talking about using the phone at the checkout register. You have apps on your phone that let you put in a credit card then you just tap your phone at the register. I don't know if you can set it up with a debit card.

[Winter2025VA]

[Tuesday 3/25/25] Papaw @papawofboo thanks for responding. Nope, I will skip = additional drama IF phone is stolen.  😱

Take care,

Nicole  👵

---

[*** @papawofboo wrote 3/25/25:

I'm talking about using the phone at the checkout register. You have apps on your phone that let you put in a credit card then you just tap your phone at the register. I don't know if you can set it up with a debit card. ***]

---

[GailL1]

@papawofboo wrote  I firmly believe that if a man can devise a system, then a man can get around it.

====================

Most definitely - I got hit by a skimmer a few years back on a CC - they texted me and of course I said NO, this isn’t my purchase.  

1st the scammer puts thru a charge for a small amount - in my case it was very small - $0.05 - then next the big one $ 4000 + - CC company caught it and stopped my card - told me to destroy it and the next day via Fed X had my new card in hand.

Yep, this was all from buying gas with the card that had a skimmer attached to it.  I didn’t even notice it.  

Yes, I do look for those untouched stickers now at all stations or I pay cash.  

[Winter2025VA]

Nope Papaw @papawofboo NEVER been asked to run my Debit Card as a Credit Card. But some store unit(s) do NOT ask for my PIN and still process transaction. So I am guessing it is being run as a Credit Card.  😤  For example today at my hardware store, bought a watering can.

I NEVER use it to get cash back, I go to my bank.

I DO NOT need cash that often but like to keep a few dollars on me just in case.

Lol, cash and credit cards get me in trouble and now with being retired, wisdom told me to AVOID both.

Debit Card keeps me in the NOW. No waiting for Credit Card bill to arrive and then wonder WHY I spent so much.  😱

Cash is too EASY to spend.

Also, I have read about and heard about banks who DO NOT honor credit card terms. So it is best to GUARD all cards from being stolen and close them ASAP to reduce thief's spending.

I luv my emails from my bank every time my Debit Card is used. I set up the alert. NOT in a position to have thieves clean me out.

Take care,

Nicole  👵

---

[*** @papawofboo wrote:

Do you get asked which way to use it when you check out? I don't think all the machines ask or give you a choice. Like Gail I don't use mine except to get cash at an atm.

Again check with your bank on what they will do for you if someone gets your card. Like she said the credit card is the safest, I never understood that law. I use the credit card because of the the rewards and cash back. That's how I pay for my plants and bird food. ***]

---