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Is it safer to use a credit card or a debit card?

3:39 pm August 25, 2009, by Rana Cash

Identity theft is among the most potentially financially crippling crimes in the country. It is rampant here in Georgia, including here in metro Atlanta. Georgia ranks seventh in the nation in reported cases, according to the U.S. Federal Trade Commission. The estimated financial impact is $500 per victim.

It is no surprise that an Atlanta-wide coalition of civic groups and local government officials have initiated a public awareness program to combat identity theft here. The campaign is being led by the Atlanta Victim Assistance’s Project SAFE program and is being funded through a U.S. Justice Department grant.

There are steps consumers can take to help protect themselves, including using a credit card instead of a debit card, according to the Wallet Blog’s report on the topic.

In short, money stolen from your checking account with a debit card can send your finances quickly spiraling with bounced checks. With a credit card, there is more time to recoup the losses and recover.

Here’s an excerpt from the blog:

Credit cards should be the first choice for consumers who want maximum convenience and minimum hassle should they become the victims of fraud. But in the case that you have no choice but to use a debit card, report any unauthorized transactions you notice immediately. And if your bank is slow to move or tells you that they can’t issue you a refund for whatever reason, you may want to remind them of the agreement they made with VISA or MasterCard in order to be able you to issue you your debit card in the first place. If this doesn’t work get in touch with the network in question and ask that they investigate. They were pretty quick to respond to us.

Click here to read the full text.

To find out more about the Project SAFE program, call Atlanta Victim Assistance at 404-588-4740.

Follow me on Twitter @atlbargains

Have a story idea? Email rcash@ajc.com

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6 comments Add your comment

Tdove

August 25th, 2009
4:17 pm

Ok, do they know that encouraging people to use their credit card (borrowed money) instead of their debit card (cash on hand) that they are sending a message that will cause more people to run their debt up?

The solution is to check your account on line every few days to make sure that everything is where it’s supposed to be. The other solution is to use straight cash.

Financial Freedom

August 25th, 2009
4:33 pm

Actually checking your bank account is worthless cause merchants may not batch their sales till days later and a charge not showing on your online bank account is not grounds to have NSF fees removed. But asking people to keep a check log is a joke cause most of this counrty cannot perform simple addition and subtraction without help.

You right that people will probably spend more with a credit card then they have in an account, but they would do that anyways.

Brian

August 25th, 2009
6:59 pm

Man, the “credit card nazis” will hate to hear that someone is encouraging credit card use. The fact is that debit cards still don’t offer the sqame protections that credit cards do. When you rent a car or hotel room, the merchants put large holds on your account (see the big signs at rental car counters and hotels). Credit cards are not evil. The unwise use of credit cards is evil.

At the end of the day, each person must decide of credits card usage is needed. I use credit cards all the time. I love the protection rewards and convenience. If you can’t control yourself, then stay away. There is no one blanket statement that covers everyone.

Now, can someone please get on with the personal attacks.

Homer

August 25th, 2009
7:27 pm

I see no problem using a credit card vs a debit card since I use my checking account to pay the credit card balance. The credit card has more secure features like Clark Howard says you can dispute a transaction if the goods sold are bad and you have 2 mos I think to dispute. Try that with a debit card.

nana

August 25th, 2009
9:10 pm

We rarely use the debit card, usually only as an ATM. If you are disciplined enough like one post said deduct any credit card purchases from your checkbook immediately and when the bill comes pay it off. Great way to get cash back, etc. We’ve also “frozen” our credit that I think will also help in identity theft. We have none of those credit card offers anymore that used to come on a daily basis.

mel

August 27th, 2009
2:42 pm

Pay off your credit card bill in full every month. You’ll have the benefit of no finance charges, the assurance of the 0% fraud liability, the convenience of booking travel expenses on the card, and the added bonus of cash back or reward points if your card offers them. Not to mention, paying your card off in full every month has a positive effect on your credit score.