5 places you should not use your debit card (2024)

FAQs

5 places you should not use your debit card? ›

Here are some cons of debit cards: They have limited fraud protection. According to the Federal Trade Commission, if your debit card is stolen and you notify your bank within two days, you could be responsible for up to $50 of any fraudulent charges.

Here are some cons of debit cards: They have limited fraud protection. According to the Federal Trade Commission, if your debit card is stolen and you notify your bank within two days, you could be responsible for up to $50 of any fraudulent charges.

Payments with a debit card are taken instantly from your checking account and shopping online comes with the added risk that your information may be stolen. Using a debit card opens up the possibility that the thief will gain access to the funds in your checking account.

Convenience. Some shops may prefer to deal with cash because it is simply faster, easier, and more reliable than debit cards. Cash transactions don't require any equipment, internet connection, or electricity, and they don't have the risk of declined payments, fraud, or chargebacks.

Phones do create a magnetic field, but thankfully, it isn't strong enough to demagnetize credit or debit cards. The small magnet in the phone's speaker is the main culprit of generatingthe magnetic field. This field, however, is too weak to cause sufficient damage to a credit card magnetic strip, with some exceptions.

We always maintain several layers of security & continuously update our methods & test our systems. Walmart stores only verified payment methods—including credit cards—must include CVV codes. Information is always encrypted over secure networks called Secure Sockets Layer (SSL).

No Rewards

Unless you have a rewards checking account, you won't earn any points, miles, or cash back on purchases made with your debit card. Because rewards can save you money, depending on how you redeem them, you could be missing out if you only spend with a debit card.

Debit card fraud can be sophisticated or old-school. Thieves use techniques including: Hacking. When you bank or shop on public Wi-Fi networks, hackers can use keylogging software to capture everything you type, including your name, debit card account number and PIN.

Why do people hate debit cards? ›

Despite their convenience, debit cards carry risks that have serious financial consequences. A stolen number, PIN, or security code can result in unauthorized transactions, overdraft fees, bounced checks, an empty bank account, and even personal information breaches.

Coming into contact with refrigerator magnets, clasps on wallets, and magnets on the back of tape measures and flashlights can demagnetize a credit or debit card. When you place your card in your wallet, but sure not to rub it up against the metal clasp and place it as far away from it as possible.

A common way to steal debit or credit card information is called 'skimming' or 'swiping,' where thieves pass your card through a device that reads and records the information from the magnetic swipe. Keep Your PIN a Secret. Never write it on your card or store it with your card. Don't give your PIN over the telephone.

Similarly to card skimming, card scanning is a type of payment card theft where the fraudster with a scanning device gets close enough to your bag or wallet to scan your card number. This type of fraud is enabled by the fact that today's payment cards typically work on Radio Identification Frequency (RFID) technology.

Your Credit Can Take a Hit

Not only is a debit card unhelpful in building your credit, it can actually bring your credit score down—if you overdraft and carry a negative balance at your bank, it will show up as another debt on your credit report.

Fraudsters can still use your debit card even if they don't have the card itself. They don't even need your PIN—just your card number. If you've used your debit card for an off-line transaction (a transaction without your PIN), your receipt will show your full debit card number.

Though it isn't always avoidable, paying with a debit card at retail stores can make consumers vulnerable to skimmers. An alternative to swiping your debit card is using a contactless payment method.

Debit card advantages include flexibility, security, and the ability to use them almost anywhere. Debit cards can help some consumers manage money.

If you find yourself struggling to pay off your credit card, using a debit card may be a better way to manage overspending. "If you have credit card debt, then putting routine purchases on a debit card would make sense in order to avoid going deeper into debt.

Typically, a server will drop the bill off at a table, then leave. Customers put their credit or debit cards on the table. The server returns, then collects the cards and takes them away from the table to a fixed POS terminal to swipe the card (or cards) and complete the transaction.