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Why credit cards are safer than debit cards?

IamCheated.com Research Team | September 09, 2019  3:04:pm

Why credit cards are safer than debit cards?

The number of people using debit cards in India is on the rise. If you have a bank account you will be given a debit card. Debit cards are very useful and they can be used for several purposes. With the help of your debit card, you can withdraw cash from ATMs and make payments at various places like restaurants, malls, Supermarkets, hospitals and so on. Your debit card can be used to make payments online. As the number of people using debit cards in India is rising; frauds too increase.

Many people in India have fallen prey to debit card frauds and have lost lakhs of rupees. These frauds are increasing each day; even though the government and banks have taken initiatives to avoid them.

Fraudsters are very smart and have come up with innovative tricks to cheat people of their hard-earned money.  They somehow steal card details and use them to carry out fraudulent transactions. Even people who are very careful have fallen prey to card frauds and lost their money. The most common type of card fraud is card skimming. 

See Also: SBI Debit and Credit Card Holders Beware of this Fraud

In the case of card skimming, a small electronic device called the skimmer is fixed inside the ATM or POS machine. When your card is run through a skimmer, the device captures and stores key information from the magnetic strip of your card.

While fraudsters have come up with various tricks to steal money from your bank account, the simplest way to protect yourself from the fraud is not using your debit card at all. When compared to the debit card, credit cards are safer. Your debit card may put your bank account and the money in it at risk.

Here we discuss why credit cards are safer than the debit cards:

1. When a credit card is issued, a bank or a credit card company will set a credit limit. You can spend money up to the limit.  So, this credit limit on credit card helps prevent large withdrawals when cards are compromised by fraudsters.

2. When you spend money using your credit card, you are spending the bank's money while your money is safe at the bank.

3.  When there is a data breach, the amount fraudsters steal using your credit card is not your responsibility. All you have to do is report the fraud to your bank and get your card blocked. But, in the case of debit card fraud, you will be losing your own money from your bank account and you will have to take a lot of steps to recover it.

There are a certain set of procedures you need to follow. If the fraud has taken place due to your carelessness, you will not get the money back.

4. By using a credit card for day-to-day expenses, you can keep your money in the bank account and earn interest on it. But, all you must do is pay credit card bills on time and avoid extra charges.

See Also: Debit Card Vs Credit Card. Which Is Better?

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