Dave Says: Credit vs. Debit Cards

Dear Dave,

My husband says there’s more risk associated with using a debit card than a credit card. Is this true?

Brittany

Dear Brittany,

As long as you’re using a Visa or MasterCard debit card and processing it as a credit card, you will have the same exact protection against fraud and theft as a credit card—period. If your number is misused or your money stolen, both Visa and MasterCard require the member bank to replace the money you lost. In the case of a credit card, they would have to wipe it off your bill.

Remember, your debit card has two functions. If you use your debit card as an ATM card—which means you enter your personal identification number—then your protection extends only as far as your bank or ATM system allows. These protections can vary depending on your particular bank. And most of the time, the protection you receive from the bank alone isn’t nearly as good!

—Dave