5 Places You Should Avoid Using a Debit Card

KNGT-FM - Most of us use our debit cards without thinking twice. We tap, swipe, and move on. But if something goes wrong, that money comes directly from your bank account. Before you use your debit card, we have FIVE places where a credit card may be the smarter choice.

Cards have become a huge part of everyday life. Whether you’re grabbing coffee, filling up your tank, or ordering something online, using a credit or debit card is just so easy, almost too easy. More than 175 million Americans have a credit card, while about 85% of consumers own a debit card. According to the Federal Reserve Finance Office, credit and debit cards make up about 65% of all purchases

Credit cards usually offer stronger protection if something goes wrong. Federal rules limit your responsibility for credit card fraud to $50, and many credit card companies offer even more protection. Debit cards work differently. If someone steals your debit card information and you do not report it quickly, you could lose much more money.

Credit cards also offer another benefit: rewards. Many credit cards give points, cash back, or travel rewards when you spend money. Debit cards usually do not offer those same rewards.

5 Places Where You Should NOT Use A Debit Card

Motley Fool Money put together a list of five places where using a credit card, not a debit card, may be the safer choice...

Gas Stations & Convenience Stores - Gas pumps can be targets for card skimmers that steal your information. With a debit card, thieves could pull money straight from your checking account. A credit card keeps the risk away from your everyday money and may offer gas rewards.

Travel Bookings - Flights, hotels, and rental cars are usually better with a credit card. Many cards offer travel protection, rewards, and perks. Debit cards can also have holds that tie up your own money for days.

Shopping Online - Even trusted websites can get hacked. If your debit card information is stolen, money can leave your bank account immediately. Credit cards usually offer stronger fraud protection.

Large Purchases - Buying expensive items with a credit card may give you extra protection. Some cards offer extended warranties or help if an item is damaged or stolen.

Restaurants & Bars - Your card may leave your sight when paying at a restaurant. If someone gets your information, a debit card could put your checking account at risk. Credit cards offer more protection and can earn rewards.