What is the Difference Between a Credit Card vs. Debit Card?

Let’s go over which is more secure in the credit card vs. debit card debate, what you need to know about card fraud, and other important safety considerations when making credit or debit card purchases.

What is the Difference Between a  Credit Card vs. Debit Card?

One advantage of using a debit card over a credit card comes from not having to pay any interest on an unpaid balance—remember, debit cards don’t borrow money but instead spend money you already have.

What is Card Fraud?

Card fraud involves a criminal stealing a debit card, credit card, or all of either card’s details. Once somebody steals your card or card information, they often try to make large purchases quickly.

What Laws Protect You From Card Fraud?

For credit card fraud, consumers receive protection under the Fair Credit Billing Act (FCBA).  For debit card fraud, consumers have protections under the Electronic Fund Transfer Act (EFTA). If you lose your debit card or know it was stolen, report it to your bank immediately.

What is Credit Card Fraud?

Credit card fraud occurs when someone uses your credit card without your permission. It could be a stranger who stole your card or someone you know who “borrowed” your card without your knowledge.

When is it Safer to Use a Credit Card?

In most situations, it’s safer to use credit cards than debit cards. Most credit cards have zero fraud liability policies and are overall safer in the event of fraud.

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