Have you heard of debit cards? Usually, a debit card is a card issued by banks to customers. Just like credit card, it’s aimed at providing an alternative payment method to cash when making purchases.

These days, as consumers move in greater numbers from credit cards to debit cards – drawn by convenience and lack of interest fees – banks are beginning to offer more and more debit card services. However, while swiping your debit card for larger purchases can be convenient, there are also risks.

When making large purchases, many experts recommend using a credit card. If your purchase turns out to be faulty or unsatisfactory, it is harder to file a dispute over purchases that are made with a check card than for those made with credit cards. With credit cards, you are protected under the fair credit billing act, a federal law which keeps you from having any liability for fraudulent purchases, poor-quality or damaged merchandise, or for merchandise that was never delivered.

But with debit cards, there is no federal law providing you with liability protection – it’s up to the individual company from whom you got the card. So if you plan to make a large payment, you should check carefully to find out what liability protection your card company offers.

Another risk with making a lot of debit card payments is that it puts your card more frequently at risk of being “skimmed”, stolen, or otherwise used fraudulently.

So, if you want to make a large purchase online, it’s best not to charge it to your debit card. Always remember that debit cards offer only limited protection for buyers. By using a credit card on large purchases, you can enjoy Fraud Liability Protection and the option to dispute charges should you need to.

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