5 places to never use your debit card

[Waiting2BwithHim]

In some situations, using a debit card can expose you to fraud or identity theft.

This post comes from Brian O'Connell at partner site MainStreet.

No doubt about it, debit card usage is a big part of the new normal on Main Street these days as consumers try to manage credit card debt.

According to the TSYS & Mercator Advisory Group Debit Survey 2011, debit is now the preferred payment type in most point-of-sale locations, beating cash, credit cards and checks.

But that doesn't mean you should use debit cards all the time. In fact, there are some places and times that using a debit card is actually a lousy proposition.

For example, using a debit card online can work against you. If you have a problem with the purchase or your debit card number is stolen, it's a huge hassle to get the money restored to your account and make your card number safe and secure again. In the online world, credit cards are usually a better bet.

Here are some other instances where debit card usage is a bad idea:

•Rental or security deposits. If you have to put money down to rent a car or heavy-duty home improvement equipment, try not to use a debit card. Why? Because the business will actually take the money out of your account in the form of a security deposit. You'll get the cash back when you return the car or equipment. But with a credit card, the money is just "frozen" but not actually charged and you won't ever notice it's gone.

•Restaurants and bars. There are way too many prying eyes around a dining establishment to trust using your debit card. Apart from the risk of having your card stolen, restaurants are one of those rare places where someone actually walks away with your card and you don't see them for a few minutes. Much better to use cash when dining out.

•Regular payments. Businesses love to get their sticky little fingers on your debit card number so they can extract dues straight from your bank account on a regular basis. Whether it's a gym or your insurance company, you're better off using a credit card. That's because if there's a dispute, the business won't take the cash right out of your checking account if they don't have your debit card number.

•Wi-Fi hot spots. Never use your debit card for an online purchase while at a coffee shop or other business that offers free Wi-Fi access. Many of those businesses have unsecured wireless connections, so it's much easier for hackers and scammers to log on and steal your data.

•Any retail outlet where you choose the "credit" option. Debit cards allow you to choose between a debit (having cash taken straight out of your account) and a credit transaction (where the money will be taken out but it could be a few days later). For one, credit purchases cost the retailer more cash in swipe fees, so you could be hurting a small business owner. But the real problem is the delay when choosing credit -- you may forget the purchase and not account for the money. That can lead to an overdraft situation and the onerous fees that can go with them.

Debit cards are great financial tools, and it's easier carrying a card than a wad of cash. But debit cards shouldn't be used all the time -- and the situations listed above should be at the top of your list of "no debit" zones in the future.

[Isaiah 6:8]

This article seems to be written by a person in the credit indistry Remember per proverbs.

Proverbs 22:7

The rich rule over the poor, and the borrower is slave to the lender.

So credit cards are a bad Idea at any time. I'll go over and address line bye line.

For example, using a debit card online can work against you. If you have a problem with the purchase or your debit card number is stolen, it's a huge hassle to get the money restored to your account and make your card number safe and secure again. In the online world, credit cards are usually a better bet.

False. Its just as hard to deal with as a credit card, however if a person goes over limit with your credit card your fees increase substantially, and any "Promotional" rate you may have had on your card you may lose and never get back. You may lose a 3% rate to have it replaced with a 30% rate, Not good and most companies are not willing to help you with this. Also per Federal law, you must be reimbersed and you have to have your funds replaced. They are both a hassle and about the same. However you will not be tempted to spend money you don't have with a debit card as much as you are with a credit card, so in the big picture you save so much money its worth any limited extra hassle you may run into. If you are really afraid of that when shopping on line, you can simply buy a pre paid credit card that is not linked to a bank account and has only the money you put in it. This is far safer then either regular credit or debit.

•Rental or security deposits. If you have to put money down to rent a car or heavy-duty home improvement equipment, try not to use a debit card. Why? Because the business will actually take the money out of your account in the form of a security deposit. You'll get the cash back when you return the car or equipment. But with a credit card, the money is just "frozen" but not actually charged and you won't ever notice it's gone.

True, sometimes. Not all do this and simple research and planning and preparedness will work. Most people do not often need services like this, and when they do its far enough in advance that you can plan ahead and have the additional cash in the bank to cover it. This is what I do, I have not had a credit card in over 3 years, and have never had a problem with this, and I just rented a car two days ago.

•Restaurants and bars. There are way too many prying eyes around a dining establishment to trust using your debit card. Apart from the risk of having your card stolen, restaurants are one of those rare places where someone actually walks away with your card and you don't see them for a few minutes. Much better to use cash when dining out.

True, both with credit and debit. are at risk here, why this article singles out debit cards shows a bias towards the credit industry which is very unhappy, with the amount of money they are losing to people learning to manage there money in a more wise way.

•Regular payments. Businesses love to get their sticky little fingers on your debit card number so they can extract dues straight from your bank account on a regular basis. Whether it's a gym or your insurance company, you're better off using a credit card. That's because if there's a dispute, the business won't take the cash right out of your checking account if they don't have your debit card number.

Again true, but again you do not need a credit card. Most if not all financial institutions have free online bill pay, you can set up automatic bill payments from your bank you control and I would never give that info out to anyone on either card anyway.

•Wi-Fi hot spots. Never use your debit card for an online purchase while at a coffee shop or other business that offers free Wi-Fi access. Many of those businesses have unsecured wireless connections, so it's much easier for hackers and scammers to log on and steal your data.

Again same goes to credit cards and yet they only mention Debit cards.

•Any retail outlet where you choose the "credit" option. Debit cards allow you to choose between a debit (having cash taken straight out of your account) and a credit transaction (where the money will be taken out but it could be a few days later). For one, credit purchases cost the retailer more cash in swipe fees, so you could be hurting a small business owner. But the real problem is the delay when choosing credit -- you may forget the purchase and not account for the money. That can lead to an overdraft situation and the onerous fees that can go with them.

Okay this seems to be promoting debit cards. So here just use your debit card and type your pin in and you save yourself and the institution the hassle of the credit transaction. More proof this is an article who is at the very least a backer of the credit industry. As this makes no sense to state not to use your debit card here.

Debit cards are great financial tools, and it's easier carrying a card than a wad of cash. But debit cards shouldn't be used all the time -- and the situations listed above should be at the top of your list of "no debit" zones in the future.

So in a nutshell, anywhere its unwise to use either a credit card or a debit card use cash. Otherwise you do not need to worry, use your debit card and do not get credit cards, those will hurt your finances way more then any inconvenience.

By the way, something to think about.

on average when you go to McDonald's and you use your credit card, you will spend between 30 -50% more per transaction then you would with cash and on average 20% more at the grocery store. Using Debit or Cash will save you tens of thousands of dollars if not hundred of thousands of dollars over your lifetime. Why do you think the credit card and retail companies want you to not use your debit card?

[truck1500]

I tend to use cash as much as possible, and frown at using credit cards. My wife and I started working on our debt a year ago, and we're 7 months ahead of schedule for paying off our debt.

[Isaiah 6:8]

Cruise ships and foreign ports. It is best to use credit cards in these 2 places.

Banks have been known to lock down accounts or set aside very large amounts from bank accts when a debit card is used in these 2 situations.

It is always a good idea to let credit card companies and banks know if you will be traveling abroad. It is not unheard of for services to be blocked because the companies think the cards may have been stolen and taken out of the country. You don't want to be stranded abroad with no finances available.

Not a problem, again this is holds true to both debit and credit cards. Both can have restrictions placed on it if use out of the country. So this argument for not using debit cards does not hold water. I have traveled all over the world and never had an issue with this, with my Debit card, as I simply informed the bank before I left and they fixed it so that it was not an issue.

It is best not to carry to much cash in these two places. However you do need to carry some as that gives you bartering leverage, you can not debate a price in a foreign market places (Where this is the cultural norm) with credit but you may do so with cash. You will spend to much money on credit every time, and get less deals.

[Isaiah 6:8]

Cruise ships and foreign ports. It is best to use credit cards in these 2 places.

Banks have been known to lock down accounts or set aside very large amounts from bank accts when a debit card is used in these 2 situations.

It is always a good idea to let credit card companies and banks know if you will be traveling abroad. It is not unheard of for services to be blocked because the companies think the cards may have been stolen and taken out of the country. You don't want to be stranded abroad with no finances available.

It is never best to use a credit card anywhere. No one should even have a credit card. If you have to use a credit card to buy anything, it means you do not have the money for it and should not be buying it in the first place. This is the one main factor that has caused our country to be in severe economic peril, much more peril than the average American citizen realizes or wishes to acknowledge or think about. A system that is built on the entire countries citizens living within a state of increasing debt, for both themselves and their government has failure built in. The system is unsustainable and will fail. It is not a question of if, it is a question of when, and that failure is now looming on the visible horizon. It is not decades away, it is here now, right around the corner. And a life based on credit is one of the main contributing factors. We have taught an entire nation to live in a constant state of insolvency and we will reap the fruits of that ideology.

In some cases I would agree. But all cases are not the same. We use credit cards for vacations. We pay the balance off in full every month we use it. We do not use the cards because we do not have money. We use the cards because carrying large amounts of cash is stupid.

We have never had CC debt. We have never paid interest and we earn free points/money. Win...Win...Win

Well by definition, the second you use a credit card you have credit card debt. Not until you pay it does it come off. Also, Free points cost you more then you know. On average you will spend around 20-50% more on a credit card then when you use cash or debit. So if you get some points back you are still getting less then you spend. Also, 78% of all credit card holders do not pay off the balance every month. If you do, you are a very rare person indeed, but then again, credit card companies have several built in "Gotcha's" that they will get you with, if you make one mistake. All it takes is one payment to be held up in the mail and your stuck.

You see my friend was just like you, he used his credit card on vacation, and paid off the balance when he got home. however he spent a bit more then he realized, and was pushing it close to the max. He had the money to pay but his payment went through one day late. He got a late fee, he lost his promotional rate, which jacked the interest up, and it backdated it to the end of the year, and all those fees were added, he then went over the limit, he had that fee added, He did not have the money to make the payment and that was another fee. In short his spending on vacation cost him over 5000$ he did not have. It took him over two years to pay off the debt, and he wound up being sent to collections and was called several times a day and yelled at.

You see, when you take a vacation using credit cards, the vacation has a way of following you home.

Also, not one of the people who started with nothing, at college, who became wealthy, said they did it with credit card points. Its not worth the cost.

[Isaiah 6:8]

Cruise ships and foreign ports. It is best to use credit cards in these 2 places.

Banks have been known to lock down accounts or set aside very large amounts from bank accts when a debit card is used in these 2 situations.

It is always a good idea to let credit card companies and banks know if you will be traveling abroad. It is not unheard of for services to be blocked because the companies think the cards may have been stolen and taken out of the country. You don't want to be stranded abroad with no finances available.

It is never best to use a credit card anywhere. No one should even have a credit card. If you have to use a credit card to buy anything, it means you do not have the money for it and should not be buying it in the first place. This is the one main factor that has caused our country to be in severe economic peril, much more peril than the average American citizen realizes or wishes to acknowledge or think about. A system that is built on the entire countries citizens living within a state of increasing debt, for both themselves and their government has failure built in. The system is unsustainable and will fail. It is not a question of if, it is a question of when, and that failure is now looming on the visible horizon. It is not decades away, it is here now, right around the corner. And a life based on credit is one of the main contributing factors. We have taught an entire nation to live in a constant state of insolvency and we will reap the fruits of that ideology.

In some cases I would agree. But all cases are not the same. We use credit cards for vacations. We pay the balance off in full every month we use it. We do not use the cards because we do not have money. We use the cards because carrying large amounts of cash is stupid.

We have never had CC debt. We have never paid interest and we earn free points/money. Win...Win...Win

Well by definition, the second you use a credit card you have credit card debt. Not until you pay it does it come off. Also, Free points cost you more then you know. On average you will spend around 20-50% more on a credit card then when you use cash or debit. So if you get some points back you are still getting less then you spend. Also, 78% of all credit card holders do not pay off the balance every month. If you do, you are a very rare person indeed, but then again, credit card companies have several built in "Gotcha's" that they will get you with, if you make one mistake. All it takes is one payment to be held up in the mail and your stuck.

You see my friend was just like you, he used his credit card on vacation, and paid off the balance when he got home. however he spent a bit more then he realized, and was pushing it close to the max. He had the money to pay but his payment went through one day late. He got a late fee, he lost his promotional rate, which jacked the interest up, and it backdated it to the end of the year, and all those fees were added, he then went over the limit, he had that fee added, He did not have the money to make the payment and that was another fee. In short his spending on vacation cost him over 5000$ he did not have. It took him over two years to pay off the debt, and he wound up being sent to collections and was called several times a day and yelled at.

You see, when you take a vacation using credit cards, the vacation has a way of following you home.

Also, not one of the people who started with nothing, at college, who became wealthy, said they did it with credit card points. Its not worth the cost.

Evidently, we are better at budgeting and self control than your friend. We've never went over budget or paid any kind of late fee. We only use cards that are interest free for one year. When it's year is up, the card is cut up. We also have a bank account just for vacations. If the money isn't already there, we don't use the card.

We are financially very sound and started with nothing...because we DO know how to budget. Of course we didn't make our wealth from credit cards, but we haven't lost any wealth because of credit cards either.

You are a rare breed!...

Also still be careful, one late payment by even five Min can get you in trouble, I had that happen once to me.

My grandparents had a payment arrive one day late due to the mail, after 30 years of being with the same company and never once missing a payment and never once paying interest like you did. They got hit with fees and interest and the company would not fix it, as they don't make any money that way.

[udx]

Cruise ships and foreign ports. It is best to use credit cards in these 2 places.

Banks have been known to lock down accounts or set aside very large amounts from bank accts when a debit card is used in these 2 situations.

It is always a good idea to let credit card companies and banks know if you will be traveling abroad. It is not unheard of for services to be blocked because the companies think the cards may have been stolen and taken out of the country. You don't want to be stranded abroad with no finances available.

It is never best to use a credit card anywhere. No one should even have a credit card. If you have to use a credit card to buy anything, it means you do not have the money for it and should not be buying it in the first place. This is the one main factor that has caused our country to be in severe economic peril, much more peril than the average American citizen realizes or wishes to acknowledge or think about. A system that is built on the entire countries citizens living within a state of increasing debt, for both themselves and their government has failure built in. The system is unsustainable and will fail. It is not a question of if, it is a question of when, and that failure is now looming on the visible horizon. It is not decades away, it is here now, right around the corner. And a life based on credit is one of the main contributing factors. We have taught an entire nation to live in a constant state of insolvency and we will reap the fruits of that ideology.

In some cases I would agree. But all cases are not the same. We use credit cards for vacations. We pay the balance off in full every month we use it. We do not use the cards because we do not have money. We use the cards because carrying large amounts of cash is stupid.

We have never had CC debt. We have never paid interest and we earn free points/money. Win...Win...Win

Well by definition, the second you use a credit card you have credit card debt. Not until you pay it does it come off. Also, Free points cost you more then you know. On average you will spend around 20-50% more on a credit card then when you use cash or debit. So if you get some points back you are still getting less then you spend. Also, 78% of all credit card holders do not pay off the balance every month. If you do, you are a very rare person indeed, but then again, credit card companies have several built in "Gotcha's" that they will get you with, if you make one mistake. All it takes is one payment to be held up in the mail and your stuck.

You see my friend was just like you, he used his credit card on vacation, and paid off the balance when he got home. however he spent a bit more then he realized, and was pushing it close to the max. He had the money to pay but his payment went through one day late. He got a late fee, he lost his promotional rate, which jacked the interest up, and it backdated it to the end of the year, and all those fees were added, he then went over the limit, he had that fee added, He did not have the money to make the payment and that was another fee. In short his spending on vacation cost him over 5000$ he did not have. It took him over two years to pay off the debt, and he wound up being sent to collections and was called several times a day and yelled at.

You see, when you take a vacation using credit cards, the vacation has a way of following you home.

Also, not one of the people who started with nothing, at college, who became wealthy, said they did it with credit card points. Its not worth the cost.

Evidently, we are better at budgeting and self control than your friend. We've never went over budget or paid any kind of late fee. We only use cards that are interest free for one year. When it's year is up, the card is cut up. We also have a bank account just for vacations. If the money isn't already there, we don't use the card.

We are financially very sound and started with nothing...because we DO know how to budget. Of course we didn't make our wealth from credit cards, but we haven't lost any wealth because of credit cards either.

You are a rare breed!...

Also still be careful, one late payment by even five Min can get you in trouble, I had that happen once to me.

My grandparents had a payment arrive one day late due to the mail, after 30 years of being with the same company and never once missing a payment and never once paying interest like you did. They got hit with fees and interest and the company would not fix it, as they don't make any money that way.

I pay my credit card balance in full every month too. I use my credit card as a debit card (use it as if i'm using my money, which is exactly what is happening but delayed). My credit card is a good tool to build up my credit score so I could get low cost mortgage when I get that first home.

Credit card offer many benefits and often more protection (compare to debit) in event of fraud. I have been using cards for payment for nearly 7 years. I only use cash if there is a discount, and i don't see myself spending more when i use card instead of cash.

[bobby0]

I completely agree with udx and all of you who use the CC but pay it off every month. The card companies pay you to use the card and you have added security. I never use my debt card where I have to type in my PIN anywhere but the MAC. And I never give my card to anyone who takes it out of sight, like at restaurants.

One thing I do is set my credit limit so they don't keep raising it. That way someone can only put a few grand on it should they steal it.

And all the cards have SEE ID in black marker on the back.