News : Prepaid Credit Card UK

Paying With Plastic? Credit Cards Are Safest

May 28, 2008

SAN FRANCISCO (CBS 5) ― They may look alike, but credit and debit cards are very different. Especially if they're stolen.

"You have many more protections when it comes to credit card fraud than you will in the event your debit or ATM card is stolen," said Joe Ridout of Consumer Action.

Debra Ullman used an ATM card to buy gas in San Jose. Somehow thieves got her account information. Weeks later, they were withdrawing $500 a day from her account.

"I'm pissed. I'm really pissed that when you work so hard for your money that somebody would resort to these ways of gaining money for themselves," said Ullman.

She's out the money until the bank resolves the issue. A good reason why a credit card may be safer.

With a credit card, your liability is $50. With a debit card, you could lose everything. Your liability depends on when you report the loss.

A suspicious charge? Credit cards let you stop payment. Debit cards don't. The money is taken from your account immediately.

And credit cards protect you against billing errors and defective products. Debit cards don't.

"If you have the chance to use a debit card or a credit card, the protections a credit card offers make it more advantageous to use -- as long as you can pay off the balance every month," said Ridout.

Source: http://cbs5.com/