Debit cards are staples in our everyday lives. They’re great for managing spending, making online payments, and avoiding debt or interest fees. However, they shouldn’t be used for every single purchase.
Debit cards often have weaker fraud protection than credit cards, and disputes take a longer time to resolve. With scams on the rise, it’s important to stay diligent. That’s why we’re sharing 5 places to avoid using your debit card.
Reports of card skimmers at gas pumps are increasing. Fraudsters use these illegal devices to collect information from your card's magnetic stripe. The FBI estimates card skimming costs U.S. financial institutions and consumers over $1 billion yearly.
Instead of using your debit card, consider using your credit card or mobile wallet. Apple Pay and Google Pay use Near Field Communication (NFC) technology, so your phone never physically interacts with the card reader in a way that a skimmer can exploit. If tap-to-pay isn’t available, use the chip and avoid swiping when possible.
Isolated ATMs, especially free-standing ones, are less secure than those inside banks, making them ideal for fraudsters to tamper with. If the ATM has poor lighting, no foot traffic, and no visible security cameras, consider visiting a different one. Before using any ATM, inspect the machine. Gently tug on the card reader; if it seems loose, bulky, or misaligned, don't use it.
When you're on vacation or in a new area, your debit card is more vulnerable. You're unfamiliar with which businesses are reputable, and if your card is compromised, fraudsters can drain your checking account directly—leaving you without access to your funds while traveling.
If springing for a big-ticket item, use your credit card instead. Some credit cards offer rewards programs that give you cash back or points on purchases. A $1,500 laptop could earn you $30 or more, depending on your card's rate. Credit cards also typically include purchase protections like extended warranties, price protection, and coverage for damaged or stolen items that debit cards don't offer.
At restaurants, servers take your card out of sight to process payment, creating an opportunity for card skimming. Restaurants are also frequent targets for data breaches, and the high volume of daily transactions makes it easier for fraudulent charges to go unnoticed among legitimate activity.
The key isn't to ditch your debit card entirely. It's knowing which situations call for the extra protection and perks that credit cards provide.
Download our infographic for the 5 places you should be cautious to use your debit card!