Why Should I Never Use a Debit Card | A Detail Guide By Expert


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Plastic money is the most widely used mode of payment these days. However, when it comes to whether a debit card is better than a credit card, many will argue. But the answer is simple: Banks love to pitch debit cards to avoid spending money you don’t have. There are many reasons why I should never use a debit card for my payments. But it is best to use a credit card instead, reap the benefits of it, and make your debt load down.

Therefore, if you want to know about the reasons and hidden costs of using a debit card, keep reading the following material.

Understand the Dangers of Using Debit Card

Why Should I Never Use a Debit Card

Your checking accounts have direct contact with your debit cards, as you can avoid the interest charges if you opt for a credit card. 

Let’s take a look at the flaws in debit cards’ DNA to protect yourself from fraud.

Debit Card Fraud

  • Report for the lost or stolen card within two business days. You will be responsible for 50$ unauthorized transactions.
  • If you don’t report the fraud in two days, the maximum load will go to 500$, and someone might use your debit card without your permission physically.
  • Your financial institution will consider you 100% responsible for the unauthorized transaction if you make this mistake in any case.
  • Moreover, if you do not report for sixty days, you can have potential damage, as someone can use your debit card and ATM without your permission.
  • When you sent the statement, and if 60 days have passed, you might be held by 100% in any unauthorized transaction in case of using a debit card.
  • Millions of Americans, nearly 7% of the total population, are victims of fraud and scams each year while using debit cards.

Therefore, if you use a debit card, you should follow some strict guidelines to get maximum protection. The bank newsletter is a vital link between the bank, and the client, strengthening the relationship with loyal clients.

Credit Card Fraud

  • If credit card numbers are stolen, you are not responsible for unauthorized credit card charges under federal law.
  • According to Federal Trade Commission, there is no limit of 60 days of error, and you are not liable for unauthorized use.
  • Moreover, you won’t be responsible for 50$ unauthorized charges if your original card is stolen.

Why Should I Never Use a Debit Card?

Why Should I Never Use a Debit Card

Now, I will discuss the reason not to using debit card.

Hidden Costs of Debit Card:

Unluckily, there are very consumer protections while doing debit card transactions. 

In the banking industry, they tend to push debit cards like cash, but they miss the entire story. Because it is entirely a different psychological thing to use some money than a card, for that reason, to opt for cash will help you a lot rather than use plastic of any type- be it debit or credit.

Places where you should not ever use a debit card:

It would help if you did not even think about using a debit card in any of the following places:

Purchasing of airline tickets:

Many things can go disastrous while flying with friendly skies up to high and making your traveling going bust while using a debit card. So you should be careful in future travel.

Use of ATMs

When you use unbranded ATMs, you directly increase the risk of being a victim of fraud. But there is a good thing too that the skimmers might be caught at the bank’s ATMs because there are often security cameras fitted. 

According to the Data Analytics and Credit scoring company report, 70% of cases in which debit or credit card fraud happened and hacking efforts were exposed at US ATMs and stores in 2016.

Transactions at the pumps

When you swipe your debit card on the gas stations, it usually puts a hold of 1$ to run your account. Sometimes that money is more than a dollar and might hold more than a few hours. That situation can cause you a dispute over the overdraft of the account. So if you want to make a payment through a debit card, you should go to the cashier and make cash payment. According to Visa, on the fuel pumps of the US, 1.3 % of frauds occur.  

Online shopping

When you plan to do online shopping, a credit card is the best option to make indeed. If you don’t get the things in time bought online, you can make a claim in 60 business days for sure. Thus, you can get your money back from the credit card issuer. There are many reasons you can not use your debit card for online transactions. Check out this guide to learn.


As the restaurants have much high business, you can have an increased risk of a dishonest employee, having reached your digits.

Purchasing appliances

There is less possibility of credit card fraud as compared to a debit card. Most credit cards give you the facility to make the warranty double if you make large purchases.

Cheap car insurance

According to The Zebra, you can get better car insurance deals using credit cards. The consumers can save up to 670$ each year, an insurance comparison site, if they want to secure your new rate. But if you use a debit card, you can not avail this option instead. 

Why Should I Never Use a Debit Card: FAQs? 

Is it wrong to use a debit card?

Yes, it is terrible to use a debit card, as the recent rise of fraud has made many clients think twice about using a debit card while making purchases, like on gas pumps. 

What are the disadvantages of using a debit card?

There are several disadvantages of using debit cards. Debit cards give less protection, do not increase your credit score, no reward points, and merchants can block your account.  

Can the bank find out who used my debit card?

You may be sure that everyone who processes a debit card transaction must have a payment gateway connected to the account holder’s personally identifiable information. The bank will be able to determine who billed your prepaid card this way.

How can your debit card be hacked?

A thief may obtain your card details in a variety of ways, including the internet. Skimmers use electrical gadgets that are often found in ATMs or vehicle scanners at petrol stations. When you swipe a card, it goes through the skimming, enabling the device to grab your banking information.

Is it better to use debit or credit?

Most of the people use credit card irresponsibility and ends up a debt. However, opposing popular belief, if you can use plastic responsibility, it is much better to pay with a credit instead of a debit card and keeping cash transactions to a minimum.

Is PayPal safer than a debit card?

Paying using PayPal or a bank card has identical costs and safeguards, as well as the potential for earning equivalent rewards. The greatest option for you is to decide for the sake of comfort, since the other distinctions are minor.

What are the benefits of a Visa debit card?

The main advantage of using a Prepaid debit card is that it enables you to pay for your transactions with your own funds through the Visa system. A bank card, on the other hand, allows you to get credit that you must return at a later period.

Do you have any protection with a debit card?

Section 75 of the National Credit Act does not apply to direct debit money transaction. However, you may request a refund via a voluntary program known as “chargeback.” This will allow you to cover transactions made on bank, credit, or prepaid cards of any amount.


So, at the end of the article, why should I never use a debit card? You noticed that debit cards are full of hidden flaws and dangers. If you think it will be the next time to stop yourself from using this type of plastic, you should think over it as soon as possible to protect yourself from being a victim of fraud. To avoid the risk of fraud by any means, open up a second account, connect it with the debit card, and fund it with enough money. In this way, your account will not be at risk, even if debit or credit card will fall into the wrong hands.