Debit cards can help you stay out of debt. You are less likely to overspend when the charge comes directly from your bank account instead of accumulating throughout the month. You are less likely to get tricked into thinking you can afford something with a debit card because you get an immediate balance with online checking of what’s left of your funds for the month.
But, there is a drawback in using debit cards—someone else might be able to use them along with you. The reason is the PIN number you have to enter when you use a debit card. One of the most dangerous places to use you PIN is at the gas pump. There are now devices called skimmers that can be inserted into a gas pump right after you drive off to acquire the number you entered for you card. The same can happen inside a gas station but is less likely because the skimmers are harder to use inside undetected.
So what can you do to protect yourself while you’re tying to protect your money by not using a credit card?
It is suggested that when you use your debit card at the gas pump that you choose the credit card option rather than the debit card option on the pump’s screen. The charge will still go through and be debited immediately to your bank account but will be processed in a credit card network. The next best thing is to only use your debit card when you have to sign in order for the transaction to go through. When you have to use your PIN number for the debit card, you are actually better off using your credit card. The reason is credit cards’ liability is protected by law and limited to $50. With a debit card you have a time limit to notify your issuing bank or institution, and you can be liable up to $500.
Maybe it‘s time to carry some cash!