Scenarios Where You Don’t Want To Use Your Debit Card
DEBIT CARD – A handy little plastic card that offers convenience when making purchases and other transactions.
They’re good for giving yourself a price limited when spending. These cards are also good if you’re talking about routing transactions.
However, we need to be weary when using our debit card. As convenient as it might seem, there are some cases where you just don’t want to use your debit.
According to finance expert Kimberly Palmer, though the card offers convenience, there could still be a risk of fraud. She added that the only time you should use your debit is to withdraw money from the ATM or a bank.
Likewise, here are some situations where you don’t want to use your Debit Card.
Staying at a hotel – Your debit cards are connected to your bank accounts. This means that when you’re using your debit card at hotels, employees would generally put a hold on the number of days you’re staying.
In addition to that there could also be other extra charges. According to financial attorney Leslie Tayne, this could impact your ability to use your account in case of other expense.
When renting a vehicle – Rental services also hold the money in your account when using a debit card. This means that you can’t access your funds while using the vehicle.
When traveling abroad – According to reader’s digest, you should get a separate debit card linked to a bank account with limited money.
There are a lot of cases where foreigner’s bank accounts get scammed while using their cards abroad. So, in case your card get’s hacked it’s not connected to the majority of your cash.
When doing online shopping – When you use your debit card for online shopping, you could put yourself at more risks. In the event that your do discover fraudulent activity, it’s harder to dispute with a debit card than a credit card.
According to Palmer, hackers could empty your account before you could realize your card has been compromised.
When you want to earn points – When using your credit card, you could earn points in every purchase. Which unfortunately, is not the case with debit cards.
You could also improve your credit score when you buy things with your credit and pay off the balance monthly. So if you’re looking for perks and rewards, use a credit card instead.
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