Dangers to Watch Out for When Using Your Debit Card and More!!!
You Used Your Debit Card to Pay for Gas, an Appliance, a Rental Car, Reserve a Hotel Room or Anything Online
Buy a coffee at Starbucks with a debit card and $2.01 will be deducted from your checking account–end of story. But fill up your car for $30 and the gas station might put an $80 “hold” on your checking account for a couple of days until the station reconciles its accounts and transmits your purchase to the bank. While that money is locked up, you can get hit with overdraft charges for subsequent purchases–even if you have enough money in your account.
Buy a coffee at Starbucks with a debit card and $2.01 will be deducted from your checking account–end of story. But fill up your car for $30 and the gas station might put an $80 “hold” on your checking account for a couple of days until the station reconciles its accounts and transmits your purchase to the bank. While that money is locked up, you can get hit with overdraft charges for subsequent purchases–even if you have enough money in your account.
The worst move is to check in to a hotel with a debit card but pay the bill with a different card. The debit-card company might keep the hold for as long as 15 days, unaware that you paid with another card. Spend four nights in $250 hotel room, and, when the phantom incidentals are added in (a hotel might tack on an estimate for anticipated minibar or room service charges to the “hold”), you could lose access to $1,100 of your own money for half the month.
Overusing the ATM.
Going to the ATM allows us to avoid lines at the bank and access our funds at any time. But it also comes with fees. If you use an ATM that isn’t operated by your bank, you may have to pay fees to both your bank and the one that owns the ATM. And no matter how small those fees may be, they really add up over time. That’s why you shouldn’t run to the ATM every time you need a few dollars. You can avoid fees by going to your own bank or getting cash back when you buy something.
Going to the ATM allows us to avoid lines at the bank and access our funds at any time. But it also comes with fees. If you use an ATM that isn’t operated by your bank, you may have to pay fees to both your bank and the one that owns the ATM. And no matter how small those fees may be, they really add up over time. That’s why you shouldn’t run to the ATM every time you need a few dollars. You can avoid fees by going to your own bank or getting cash back when you buy something.
Running your card as credit.
There are two reasons why this is bad. The first is because merchants have to pay more for credit card transactions than debit card transactions. In most case this makes no difference in the price you pay, but some smaller merchants will charge you more for using a card that is run as credit. The other reason is that debit card transactions clear immediately, but if you run your card as credit, the transaction may not clear your account for up to 60 days. This can cause confusion if you don’t keep close tabs on the amount you’ve spent.
There are two reasons why this is bad. The first is because merchants have to pay more for credit card transactions than debit card transactions. In most case this makes no difference in the price you pay, but some smaller merchants will charge you more for using a card that is run as credit. The other reason is that debit card transactions clear immediately, but if you run your card as credit, the transaction may not clear your account for up to 60 days. This can cause confusion if you don’t keep close tabs on the amount you’ve spent.
Buying big ticket items with your debit card.
When it comes to large purchases that may need to be returned, it’s much better to put them on your credit card and pay the balance in full than to use your debit card. That’s because if you have trouble getting your money back from the merchant, you can file a claim with your credit card issuer and receive credit immediately. If you use your debit card, you won’t get your money back until you convince the retailer to give it back to you.
When it comes to large purchases that may need to be returned, it’s much better to put them on your credit card and pay the balance in full than to use your debit card. That’s because if you have trouble getting your money back from the merchant, you can file a claim with your credit card issuer and receive credit immediately. If you use your debit card, you won’t get your money back until you convince the retailer to give it back to you.
Gas Stations That Can Freeze Your Funds
In 2008, SF Gate reported that scammers drained $45,000 from customers who used their debit cards to pay for gas at an Arco station in San Jose, Calif.
For this reason, it’s safer to use a credit card during gas station trips because you’ll be charged for the exact amount you spent, making it easier to detect any fraud. Conversely when you use a debit card, your account will show a hold, which can range anywhere between $50 and $75, depending on the station, and can last for days after your visit, according to CBS Moneywatch.
In 2008, SF Gate reported that scammers drained $45,000 from customers who used their debit cards to pay for gas at an Arco station in San Jose, Calif.
For this reason, it’s safer to use a credit card during gas station trips because you’ll be charged for the exact amount you spent, making it easier to detect any fraud. Conversely when you use a debit card, your account will show a hold, which can range anywhere between $50 and $75, depending on the station, and can last for days after your visit, according to CBS Moneywatch.
Restaurants and Bars Where the Card Leaves Your Sight
The danger in using your debit card at restaurants and bars is that the card has to leave your sight, which compromises your data, reports Banktime.
You may think that plunking down that debit card is the easiest way to settle a check, but in a crowded dining environment, unsuspecting prying eyes (namely the waiter who’s taking your card) can pose a real threat to your bank account.
The danger in using your debit card at restaurants and bars is that the card has to leave your sight, which compromises your data, reports Banktime.
You may think that plunking down that debit card is the easiest way to settle a check, but in a crowded dining environment, unsuspecting prying eyes (namely the waiter who’s taking your card) can pose a real threat to your bank account.
Public Wi-Fi Locations That Can Hack Your Data
According to Private I blog, it’s much easier for hackers to steal your information through an unsecured wireless connection so don’t even think about using an ATM cardat your favorite Starbucks or Barnes & Noble. If you must use a card, fork over the credit because that will make it less of a challenge for these crooks to steal your data.
If you must do your shopping online, follow these steps on Private I blog to secure your activity.
According to Private I blog, it’s much easier for hackers to steal your information through an unsecured wireless connection so don’t even think about using an ATM cardat your favorite Starbucks or Barnes & Noble. If you must use a card, fork over the credit because that will make it less of a challenge for these crooks to steal your data.
If you must do your shopping online, follow these steps on Private I blog to secure your activity.
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