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Articles / Danger in using Debit card for online purchases

Danger in using Debit card for online purchases

Administrator27 Oct 2017
 

Many of us shop online and pay through credit card or debit card. Comparatively, it is safer to pay by credit card than debit card for 2 reasons:

  • The credit card has a maximum limit of spending. The debit card doesn't have a limit. If you have money in your back account, you can spend as much using debit card. So, if your debit card details are stolen through hacking / online frauds you may lose all the money you have in your bank account. But in case of credit card, at worst you may lose what is left in the credit limit.
  • When you use a credit card, you spend your bank's money although you have to pay, along with interest that the bank may charge you. This protects you in case of the fraud. If your card is misused, you can explain to the bank that it is a case of fraud. If the investigation by banks finds it true, the bank will not charge for the fraudulent transactions. Although you can explain the same in debit card fraud also and get the money back, you will first lose the money and you get back the money if your bank finds your claim true only.

Though there are safely aspects like chip and PIN or OTP, it is better you never use debit card to pay online transactions.

But there is a counter point, although not on fraud: We won’t spend much if we use debit card. Because, it is our money in hand. But, in case of credit card, if we are impulsive at that moment, we may purchase beyond our re-payment capacity, although it may be within the credit card limit. Therefore, is it not safer to use debit card?

Source: From “NEVER use a debit card for shopping online and here is why”, indiatoday.in, 25 October 2017. Picture Courtesy: ndtv.com

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