The recent Target breach has made a lot of shoppers rethink debit cards.
Sure, you don’t run up high credit card bills, and you don’t get hit with interest charges. But except for that, debit is a lot more risky these days than credit.
Consumer reports ShopSmart magazine says while debit cards help you avoid getting deep in debt, debit cards can still get you in a lot of trouble.
The magazine says don't use debit cards for online shopping, for security reasons. Don't ever use a debit card on an out of the USA trip, such as to Mexico, again because of the high risk of fraudulent charges.
Don’t use debit cards for large purchases like big TVs or furniture. With a credit card you can easily dispute a broken TV.
And don't use a debit card to raise your credit score; you need a credit card to do that.
Banks will reimburse you, if you can show a purchase was fraudulent on a debit card. But fighting a bad charge can take months, leaving you out of money.
You won’t pay a dime when disputing a credit purchase.
If you really need to shop with debit, consumer reports magazine suggests you tie that card to a separate small checking account.
It says do not have the card connected to your main account that you use to pay the mortgage or rent because there’s always a risk of bouncing those checks.