𝓘𝓼 𝓒𝓻𝓮𝓭𝓲𝓽 𝓒𝓪𝓻𝓭 𝓢𝓪𝓯𝓮𝓻 𝓯𝓸𝓻 𝓞𝓷𝓵𝓲𝓷𝓮 𝓢𝓱𝓸𝓹𝓹𝓲𝓷𝓰?
Cyber Monday is here. Before you going on the Internet and get your clicks on the best deals and offers, remember that there is a difference between using debit card and credit cards for your online transactions.
Because it’s linked to your checking account, a debit card can help you stick to your budget. Just understand that a debit card does not have the same fraud protection as a credit card, especially with an unfamiliar website or merchant.
“If the merchandise doesn't show up, or more likely shows up and it's not what you wanted, it's not what was described, or it's broken, and if the merchant won't help you out, you still have the right under law to get that money back through the credit card provider. So you exercise the chargeback right,” explained Christina Tetreault, manager of financial policy at Consumer Reports.
When you pay with a debit card, you are authorizing a withdrawal from your checking account. When you pay with a credit card, you are tapping a line of credit provided by the bank. So, the financial risks are significantly different. It’s you’re money vs. theirs.