Perils of using debit cards
3rd July: Are you thinking of using debit cards especially during summer vacations? Be wary of identity thieves while using a debit card.
Consumer- Be Wary–Using a debit card is, no doubt, a convenient means to pay while you enjoy your holidays. But, using these cards could spell trouble for you especially keeping in view overseas fee and other costs including ATM fees and fraud related to debit cards. That’s why many call it dangerous to use debit cards, experts warn.
Let us see some of the most common perils of using a debit card—
- Fake ATMs—As a consumer, you need to keep in mind that using a debit card on the road can make you susceptible to fraud of fake ATMs. These days, it is becoming a common norm to catch user’s account details by installing card readers. Crooks find it quite convenient. This can lead to steal money from your account later on. So, its best use any ATM at any bank branch to keep your money safe.
- Exorbitant charges—Using a debit card while staying in a hotel can be costly. That’s because most of the hotels keep hold on a higher amount of cash in your account than what’s being actually spent by you. In fact, hotels hold the entire cost of your stay including hotel meals and other miscellaneous charges. And this certainly has a direct affect on your bank account’s available balance.
- Merchant disputes—In case of any dispute concerning an item bought by you, debit card users are at a greater disadvantage as against credit card users. That’s because money is already with the concerned merchant during the dispute period. You will get back your money only when the dispute gets solved mutually.
- Loss of money—You lose money from your bank account instantly whenever anyone uses your debit card fraudulently. And the bank will take its own time to probe the issue.
- Lesser rewards than credit cards—Debit cards usually offer quite fewer rewards as compared to credit cards although some debit cards have initiated by offering rewards recently.
- Difficult to keep track of your expenses—This is one of the major drawbacks of using a debit card. You can find it hard to track your expenditure. And this can simply lead to accidental overdrafts.