When making online purchases, does using a debit card vs. a credit card make a difference? In its latest blog post, FineMark shares which type of card delivers purchasing protection and peace of mind.
Although credit cards and debit cards may look alike, each type of card possesses a unique set of purchasing features. The most notable difference between these two kinds of cards is the added buyer protection that’s automatically built into a credit card, which debit cards simply don’t have.
To help you decide which type of card is best to use for your next purchase, we’ve compiled a list of the different features offered by each type of card.
When Using a Debit Card, Remember:
- This payment card option is an alternative to cash—money will be taken directly from your checking account.
- Rewards points may be available for gift items, travel, etc.
- Fraudulent withdrawals made with a debit card can result in bounced checks—and no access to cash—while your bank investigates the fraud report.
- Federal law does not protect disputed charges made on debit cards. If you’re unhappy with a purchase you made using a debit card, there’s no guarantee you’ll get your money back.
When Using a Credit Card, Remember:
- Purchases will be charged to your credit line and you’ll be billed later. If the balance isn’t paid in full each month, you’ll pay high-interest rates on your purchases.
- You’ll build credit by paying your bills on time.
- Rewards programs are offered on most credit cards; however, some cards also charge annual fees.
- Federal law protects disputed charges made on credit cards. If you’re unhappy with a purchase and file a dispute, the card issuer can withhold payment from the retailer until that dispute is resolved.
- Fraudulent charges made with your credit card (or using your credit card number) can be removed quickly by calling the card issuer and reporting the charges as fraudulent.
At FineMark, we encourage our clients to use credit cards over debit cards. Credit cards offer buyers more protection because payment funds aren’t withdrawn directly from checking accounts (as they would be with a debit card).
Also, if fraudulent activity ever appears on your credit card bill, those charges can be contested before you make a payment, keeping the funds in your checking account safe.
If you have any questions about this article, please give us a call or stop by our office. We’re always happy to help!
