5 places you should not use your debit card (2024)

FAQs

What is the biggest con to using a debit card? ›

If you overspend, you could get hit with costly overdraft fees: If charges to your debit card cause your checking account balance to go negative, you could suffer overdraft fees and other steep charges that far exceed the potential costs of using a credit card.

The stakes of becoming a victim of fraud are especially high for debit card users because your bank account is directly linked. A fraudster could quickly drain your bank account with fraudulent purchases before you even realize your debit card number has been compromised.

Though it isn't always avoidable, paying with a debit card at retail stores can make consumers vulnerable to skimmers. An alternative to swiping your debit card is using a contactless payment method.

Bank investigators will usually start with the transaction data and look for likely indicators of fraud. Time stamps, location data, IP addresses, and other elements can be used to prove whether or not the cardholder was involved in the transaction.

Credit cards usually offer greater consumer protections on purchases related to fraud than debit cards.

Although both debit and credit cards provide easy methods of payment, credit cards have better fraud protection which makes them more secure to use online. Credit card fraud can easily happen through security breaches or cyber attacks that steal your payment card information.

Typically, a server will drop the bill off at a table, then leave. Customers put their credit or debit cards on the table. The server returns, then collects the cards and takes them away from the table to a fixed POS terminal to swipe the card (or cards) and complete the transaction.

Other types of card damage

Dirt and oils can also cause issues with your magnetic strip, while prolonged exposure to liquids may also damage EMV chips — although most credit and debit cards utilize water resistant designs. Keep in mind: Your card's magnetic strip can also be damaged by heat.

Please note that if there are three unsuccessful PIN attempts, your bank will automatically block your debit card for 24 hours for your security to prevent any unauthorized transactions. So, you must be prompt and take immediate action in these situations.

Skimming. Identity thieves can retrieve account data from your card's magnetic strip using a device called a skimmer, which they can stash in ATMs and store card readers. They can then use that data to produce counterfeit cards. EMV chip cards, which are replacing magnetic strip cards, can reduce this risk.

Can my debit card be scanned while in your wallet? ›

Similarly to card skimming, card scanning is a type of payment card theft where the fraudster with a scanning device gets close enough to your bag or wallet to scan your card number. This type of fraud is enabled by the fact that today's payment cards typically work on Radio Identification Frequency (RFID) technology.

Public internet networks at coffee shops, airports, and other public places may be where account hackers place devices that can intercept your debit card information if you go online to make a transaction.

Most debit cards are linked to a processing network, such as Visa or Mastercard, allowing them to be used anywhere cards in that network are accepted.

Another reason a business may consider accepting only credit cards is so that they can surcharge all card transactions in order to recoup processing costs. Since debit can't be surcharged, a business accepting debit but surcharging credit would still have to pay processing costs for the debit transactions.

Some ATMs will charge withdrawal fees, and if you use more than the agreed overdraft limit then the fees tend to be much greater than those incurred by credit card usage. Another disadvantage of debit cards is the fact that they have limited funds, which can slow down business.

Imagine you use a debit card to pay for a hotel stay, for example. The hotel will likely put a hold on the full rate that's due at the end of your stay, plus additional funds for potential hidden fees and incidental charges, just in case any arise.