5 Most Risky Places NOT To Use Your Debit Card

5 Most Risky Places NOT To Use Your Debit Card

Do you glance both ways when the clerk asks if you want to pay with credit or debit? Additionally, there are several levels of security even though credit and debit cards have the same appearance. In accordance with a federal law, your liability is limited to $50 in the event that your credit card is used to make an unauthorized transaction after it has been reported lost or stolen. There are no time restrictions and it does not matter how much money was stolen initially. Due to the fact that you are a respected customer, many credit card companies won’t charge you the $50.

With a debit card, however, you just have two working days to notify any unlawful loss or you could be charged up to $500. When you receive your statement in the mail after waiting longer than 60 days, there’s a chance you might be liable for the full sum.

Even though debit cards don’t charge interest, there are six instances in which they should never be used.

Gas stations and convenience stores

The most frequent target for “skimming,” in which criminals hide a portable card-reading device within the pump, is a petrol station rather than an ATM machine. The device, which thieves could buy for less than $100, records both the PIN and the data from the magnetic stripe on the debit card as you insert it and enter it. When the device is later found, the stolen data is applied to the creation of a duplicate card.

Why do C-store gas pumps exist? Gas pump manufacturers are few and far between. The skimmers can be installed at another gas pump at a convenience shop with just a key in the hands of an untrustworthy employee or burglar. Due to the unattended nature of the gas pumps, these thieves prefer to install them at night. The older the pumps, the less secure your PIN is? If you must use your debit card, choose the “credit” option rather than the “debit” option. In this manner, your PIN won’t need to be entered and the credit card network of your bank will still complete the transaction.

Online product acquisition

If you pay with a credit card, you are protected in the event that the retailer experiences a data breach, which has happened on a number of occasions recently. A credit card prevents hackers from overdrawing your bank account, and the majority provide protection benefits. Additionally, using a credit card as opposed to a debit card makes it much simpler to challenge charges if you don’t receive your things, they’re broken or the wrong item and the shop won’t refund your money.

A 90-day price protection period may be included with some credit cards, which pay you the difference if an identical product is later sold for less than you paid. Your credit card may also offer an extended warranty. Although it takes longer to receive the refund and is a lot more work, certain debit cards do offer this. For expensive things, in particular, this protection is beneficial.


Restaurants are among the settings where your card may actually escape your sight, and staff may literally vanish while writing down your card details for possible use in identity theft. They can use your card to make fraudulent online purchases even when they don’t know your PIN. And, it’s true, eateries without sit-down service are a danger. Smaller eateries keep your payment information on file, which is why it isn’t secure.

Shopping Centers

The FBI foresaw a rise in point-of-sale (POS) systems, such as cash registers and card readers, being the target of sophisticated malware-based intrusions many, many months ago. This “memory-parsing” malicious software, commonly referred to as a “RAM scraper,” was behind the widely reported breach of payment card information of around 110 million Target customers over the holiday season and was also in charge of over two dozen other incidents in the previous year.

Yes, credit cards are susceptible to these POS attacks as well. If your credit card is compromised, the credit card issuers will always cover those losses (less a potential $50 cap). Furthermore, you can be held responsible for the fraudulent use of your compromised debit card depending on when you disclose it.

Deposit Requirement

For these kinds of purchases when your final bill is uncertain, credit cards are almost always a better option, disregarding the possibility of identity theft. These instances involve rented tools, rented playing cards, and reserved vacations. If you pay with a debit card, they will put a hold on your account for a bigger sum since they assume you will be paying a bigger sum—for example, for room service at hotels or returning a rental car with no gas in the tank. If you pay with a debit card, you won’t be able to access the extra money from your bank account until the business releases the hold and reconciles your total payment. Additionally, this can cause your bank account to go into overdraft. Another incentive to use your credit card while purchasing gas at a convenience shop is the possibility of a hold being placed on debit card purchases.

To receive free email notifications with advice on how to recognize and prevent identity theft, sign up for Fraud Watch Network if you are worried about other scams. The most recent scams in your region will be kept you up to date.

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