Here are all the reasons you may want to stop using debit and use a credit card instead to shop online, courtesy of best real money online casinos of 2022.
- You may be putting yourself at risk for fraud
It’s easy to assume you won’t be liable for fraudulent purchases made with your debit card or checking account number, but this isn’t the case. Where most credit cards come with zero fraud liability thanks to rules enacted in the Fair Credit Billing Act (FCBA), the same protections don’t apply to transactions made with a debit card.
In fact, someone who finds your debit card number could wipe out all the money in your accounts. If you don’t notice or report it in time, you won’t have any way to get your money back.
- You’re missing out on rewards
In addition to putting yourself at risk for fraud, there are plenty of ways you’re missing out when you shop online with a debit card. For example, you could be earning cash back or travel rewards if you made the same purchases with a rewards or travel credit card. These rewards can add up quickly, making it easier to see the world or splurge on merchandise, gift cards, and more.
While you can typically earn 1% to 3% back with a rewards or travel credit card, you can also double up on rewards by shopping through a cash back, travel rewards, or airline portal. You can also shop in portals with a debit card in some cases, but you’ll mostly be limited to earning airline miles or cash back.
- You won’t earn any sign-up bonuses
Using a debit card when you shop online also means giving up on the possibility of earning big sign-up bonuses. Keep in mind that many rewards credit cards offer consumers the chance to earn bonuses worth $500 or more when they meet a minimum spending requirement within a few months.
You may think you need to pay the annual fee on a credit card to qualify for sign-up bonuses or ongoing rewards, but this is far from the truth. The reality is, there are plenty of rewards credit cards that dole out sizable bonuses, ongoing rewards, and more without charging a fee each year. However, there will be sign-up bonuses at best real money pokies for Australians.
- You’re giving up valuable consumer protections
Another reason to use credit instead of debit is the fact that you could qualify for valuable consumer protections and free insurance. This can include travel protections like trip cancellation/interruption insurance, rental car insurance, travel accident insurance, baggage delay insurance, and more.
Other protections that can apply to your online purchases include extended warranties, purchase protection, and guaranteed returns. Most of the time, you won’t qualify for any of these perks if you pay for your online purchases with a debit card. (See also: How Credit Cards Protect Your Purchases from Damage or Theft)
- You’re not building credit history
The final reason you may want to stop using your debit card is the fact that you’re not building credit history based on your online purchases and everyday spending. When you use credit instead of debit, on the other hand, you’re making regular purchases and payments that are reported to the three credit reporting agencies — Experian, Equifax, and TransUnion.