Smart Quiz: ONE Payment Method Offers The Most Protection From Fraud and Theft
a. Gift Cards
b. Credit Cards
c. Debit cards
d. Pre-paid Cards
Answer: Credit Cards
There is nothing quite as gutting as swiping your debit card to make a purchase, only to find it’s been declined. When your debit card has been compromised, all of your accessible cash is at risk and if it can take quite a bit of time to recover it if it has been stolen. That’s why experts recommend people use credit cards instead of debit cards when paying for purchases.
With a debit card, the bank may place holds on your account, limiting your access to what you do have left while they investigate. It can take up to a week or more for a bank to determine whether or not they will replace any or all of your funds.
With a credit card, you don’t have to pay for disputed charges while there’s an investigation, so you won’t immediately be out of money. Another thing to consider with credit cards is that you won’t be liable for more than the first $50 of fraudulent charges, and most credit card companies waive the fee. With debit cards, you may have to eat up as much as $500 in fraudulent charges!
No matter what type of card you are using, always be conscious of your surroundings and take precautions to protect your personal information by:
- Limiting ATM use to those located inside banks
- Covering the pin pad on the ATM machine with your free hand when you enter your code
- Regularly monitoring your bank account by checking your online statements and/or setting up text alerts for all transactions so you’ll immediately be notified of anything that doesn’t seem right
Whether you use a debit or credit card, make sure you report fraud or theft immediately and always be cautious of scammers.
~Here’s to Your Financial Health!