You would be able to keep a check on your account through a debit card with ease. It would not be wrong to suggest that the debit cards have been accepted everywhere with ease. However, in the event of you having an option to make the most of the credit card, it would probably be safer to use a credit card, specifically when you shop online.
Using a credit card instead of debit card online
The process has been made relatively simple for the user. Let us delve on it.
- Enter the card number
You would be required to provide your debit card number. It would be the 16-digit number printed on the Visa, Discover, or Master Card. You could also enter a debit card number in lieu of the merchant asking for the credit card number.
- Verifying the details
Apart from the card number, a majority of merchants would need some kind of verification for reducing the chances of fraud or foul play. Therefore, the merchant would ask you to punch in the security code. The security code would be written on the back of your card. You would also be required to provide any kind of address information inclusive of your zip code that should be matching the address on the file with your bank.
However, you need not provide the PIN for purchases made at the checkout counter. It would not be wrong to suggest that online purchases would be processed as a credit transaction. The amount would be deducted from the checking account in a few business days.
When you need an actual credit card?
There would be some scenarios where an actual credit card would be needed. A few car rental agencies and hotels would only accept a credit card or they would lock up the amount in your checking account. However, debit cards have been fine for a majority of transactions.
You should rest assured that debit cards have been deemed as great tools to keep your costs relatively low. It would also be a great help to manage your money in the best manner possible. They would not come with high monthly fees that have been commonly found on credit cards. Moreover, debit cards would not allow you to pile up debt.
When you should make use of credit cards
Simply because you could order online using a debit card does not imply you should actually use it. There would be certain risks associated with online shopping. You would be at risk of your identity being stolen by someone. However, the risk of stolen identity may also be prevalent in land-based shopping stores, but it would be easier for hackers to steal your data online.
In the event of your card information has been used fraudulently, you could be protected under the federal law. However, getting that money back into your account would be a painful and relatively slow process. Moreover, the credit card has been known to create a debt that you need to repay. It does not pull money out of your checking account without you knowing about it.