Is a debit card dangerous in my situation?












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I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.



I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indidcated there is fraud protection on my card, if it should be stolen and used to make purchases.










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    1















    I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.



    I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indidcated there is fraud protection on my card, if it should be stolen and used to make purchases.










    share|improve this question

























      1












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      1








      I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.



      I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indidcated there is fraud protection on my card, if it should be stolen and used to make purchases.










      share|improve this question














      I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account.



      I've heard that using a debit card is dangerous. Given my situation, is it still dangerous? No overdraft and a low balance? I've also talked to my bank (USAA) and they've indidcated there is fraud protection on my card, if it should be stolen and used to make purchases.







      debit-card






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      asked 3 hours ago









      horse hairhorse hair

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          The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



          If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



          So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.






          share|improve this answer































            2














            Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.






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              2 Answers
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              The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



              If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



              So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.






              share|improve this answer




























                3














                The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



                If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



                So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.






                share|improve this answer


























                  3












                  3








                  3







                  The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



                  If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



                  So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.






                  share|improve this answer













                  The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back.



                  If you use a credit card and there's a fraudulent transaction, the money that settles that transaction belongs to the credit card issuer. Yes you're obligated to pay it (or dispute it as fraud,) but it's a debt you owe, not your money that's been used.



                  So is it dangerous to use the debit card in the situation you've outlined? You've mitigated the risk by keeping your exposure low, but it would still be lower by not using the debit card in the first place.







                  share|improve this answer












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                  share|improve this answer










                  answered 3 hours ago









                  ToddTodd

                  1,403611




                  1,403611

























                      2














                      Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.






                      share|improve this answer




























                        2














                        Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.






                        share|improve this answer


























                          2












                          2








                          2







                          Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.






                          share|improve this answer













                          Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough cash to do so. This happened to me when I was travelling as I also don't have a credit card. Some hire car companies are very reluctant to lend you a car if you do not have a credit card.







                          share|improve this answer












                          share|improve this answer



                          share|improve this answer










                          answered 3 hours ago









                          user73552user73552

                          1212




                          1212






























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