Is a debit card dangerous in my situation?












1















I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.



I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indidcated there is fraud protection on my card, if it should be stolen and used to make purchases.










share|improve this question























  • "I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"

    – BruceWayne
    55 mins ago


















1















I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.



I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indidcated there is fraud protection on my card, if it should be stolen and used to make purchases.










share|improve this question























  • "I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"

    – BruceWayne
    55 mins ago
















1












1








1








I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.



I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indidcated there is fraud protection on my card, if it should be stolen and used to make purchases.










share|improve this question














I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.



I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indidcated there is fraud protection on my card, if it should be stolen and used to make purchases.







debit-card






share|improve this question













share|improve this question











share|improve this question




share|improve this question










asked 4 hours ago









horse hairhorse hair

1,80521730




1,80521730













  • "I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"

    – BruceWayne
    55 mins ago





















  • "I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"

    – BruceWayne
    55 mins ago



















"I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"

– BruceWayne
55 mins ago







"I use a debit card as a credit card..." - huh? I think you're missing the term "credit card", as by definition a credit card extends a line of credit to you so you can spend more than you (may) have. Can you clarify what you mean? Where did you hear a debit card may be dangerous? An account with a debit card that has $10 in it can, generally, not be used to debit $1000 from it (you likely get declined). Whereas a credit card can have up to the credit limit spent, regardless of how much you actually have in any account, which is arguably more "dangerous"

– BruceWayne
55 mins ago












2 Answers
2






active

oldest

votes


















3














The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.






share|improve this answer































    2














    Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.






    share|improve this answer























      Your Answer








      StackExchange.ready(function() {
      var channelOptions = {
      tags: "".split(" "),
      id: "93"
      };
      initTagRenderer("".split(" "), "".split(" "), channelOptions);

      StackExchange.using("externalEditor", function() {
      // Have to fire editor after snippets, if snippets enabled
      if (StackExchange.settings.snippets.snippetsEnabled) {
      StackExchange.using("snippets", function() {
      createEditor();
      });
      }
      else {
      createEditor();
      }
      });

      function createEditor() {
      StackExchange.prepareEditor({
      heartbeatType: 'answer',
      autoActivateHeartbeat: false,
      convertImagesToLinks: true,
      noModals: true,
      showLowRepImageUploadWarning: true,
      reputationToPostImages: 10,
      bindNavPrevention: true,
      postfix: "",
      imageUploader: {
      brandingHtml: "Powered by u003ca class="icon-imgur-white" href="https://imgur.com/"u003eu003c/au003e",
      contentPolicyHtml: "User contributions licensed under u003ca href="https://creativecommons.org/licenses/by-sa/3.0/"u003ecc by-sa 3.0 with attribution requiredu003c/au003e u003ca href="https://stackoverflow.com/legal/content-policy"u003e(content policy)u003c/au003e",
      allowUrls: true
      },
      noCode: true, onDemand: true,
      discardSelector: ".discard-answer"
      ,immediatelyShowMarkdownHelp:true
      });


      }
      });














      draft saved

      draft discarded


















      StackExchange.ready(
      function () {
      StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmoney.stackexchange.com%2fquestions%2f105892%2fis-a-debit-card-dangerous-in-my-situation%23new-answer', 'question_page');
      }
      );

      Post as a guest















      Required, but never shown

























      2 Answers
      2






      active

      oldest

      votes








      2 Answers
      2






      active

      oldest

      votes









      active

      oldest

      votes






      active

      oldest

      votes









      3














      The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



      If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



      So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.






      share|improve this answer




























        3














        The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



        If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



        So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.






        share|improve this answer


























          3












          3








          3







          The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



          If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



          So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.






          share|improve this answer













          The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



          If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



          So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.







          share|improve this answer












          share|improve this answer



          share|improve this answer










          answered 4 hours ago









          ToddTodd

          1,403611




          1,403611

























              2














              Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.






              share|improve this answer




























                2














                Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.






                share|improve this answer


























                  2












                  2








                  2







                  Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.






                  share|improve this answer













                  Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.







                  share|improve this answer












                  share|improve this answer



                  share|improve this answer










                  answered 4 hours ago









                  user73552user73552

                  1212




                  1212






























                      draft saved

                      draft discarded




















































                      Thanks for contributing an answer to Personal Finance & Money Stack Exchange!


                      • Please be sure to answer the question. Provide details and share your research!

                      But avoid



                      • Asking for help, clarification, or responding to other answers.

                      • Making statements based on opinion; back them up with references or personal experience.


                      To learn more, see our tips on writing great answers.




                      draft saved


                      draft discarded














                      StackExchange.ready(
                      function () {
                      StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmoney.stackexchange.com%2fquestions%2f105892%2fis-a-debit-card-dangerous-in-my-situation%23new-answer', 'question_page');
                      }
                      );

                      Post as a guest















                      Required, but never shown





















































                      Required, but never shown














                      Required, but never shown












                      Required, but never shown







                      Required, but never shown

































                      Required, but never shown














                      Required, but never shown












                      Required, but never shown







                      Required, but never shown







                      Popular posts from this blog

                      Plaza Victoria

                      Puebla de Zaragoza

                      Musa