What Are The Dangers Of Using A Debit Card To Buy Something Online

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Answer #1: Posted by Odin on October 10th, 2011 11:32 AM

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Odin

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April 10th, 2010

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The dangers are similar to the dangers in using a debit card in general.

You may be up a creek if your debit card is fraudulently used to take you for hundreds (or thousands) of dollars, whereas with a credit card, federal law restricts your loss to fifty dollars--and even that is usually waived.

(A similar protection applies to debit cards, but time limits not applicable to credit cards can easily defeat debit card protections. And with a debit card, restoration of your account balance will likely have to await the completion of the bank's investigation, even if the card issuer offers greater protection.)

Your debit card offers much less protection against unsavory practices by merchants--like non-delivery. The same circumstance that may result in an immediate chargeback (credit) to your credit card may if you're fortunate prompt the bank holding your debit card merely to initiate an investigation.

Whether you're using your debit card for cash or just for a purchase, if your bank account doesn't quite cover the amount of the charge, you can without warning expect a hefty overdraft fee, and these fees can add up fast. (This fact alone could explain banks' intense enthusiasm for the product.) This is not an issue with credit cards: if there's a problem, its use will simply be denied.

If you placed an order with a debit card and the seller folds, you're essentially out of luck. This has been an increasingly common phenomenon in the recent economic downturn. Your only recourse, generally, is filing a claim in bankruptcy court, where if anything you'd get pennies on the dollar. With a credit card, your credit card issuer will almost certainly void the charge.

Then there's the question of security. Money magazine* advises, "Use cash or a credit card, not a debit card, when practical. Neither cash nor a credit card leaves any trace of your bank account information." *Thwart the ID Thieves, December '06

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Answer #2: Posted by pellkiness on October 10th, 2011 11:38 AM

pellkiness

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If someone gets hold of your debit card, they can drain your bank account and you're stuck. If you use a credit card, you're protected. A credit card puts a barrier between you and your money; a debit card is a direct line to your bank account. Don't ever use a debit card online.

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Accepted Payments Policy
... online payment methods that are not banks) such as Western Union or MoneyGram Mail checks or money orders (except for items in their listings: "Contact me for items in their listing specifically which payment methods they accept and only offer payment methods approved by "topping off" a seller's prepaid credit or debit card Pay using...
eBay glossary
...buys an item from the seller. A member has a user ID and password for processing credit or debit card payments to help from other sensitive information. As a member, you can research or write a guide. Buyers can track items you 're using...anonymous names throughout the duration of items bid on eBay and online. Pre-approve bidders/buyers Allows select sellers of high-profile ...
Choosing a payment method (for buyers)
... change payment methods after the listing has ended, you use . > Selecting payment methods Choosing a payment method (for buyers) PayPal Credit cards and debit cards Moneybookers Paymate ProPay Pay upon pickup Escrow Other payment methods How you send payments quickly and securely online using a credit card or bank account. Most sellers accept PayPal because it...