10 Debit Card Dangers

Merchant disputes: If there is a dispute regarding a purchase you make, you are in a weaker position when you use a debit card vs. a credit card. This is because the merchant already has your money when a debit card is used; this is not the case with a credit card. That means that while the dispute is taking place, your money will remain with the merchant and will only be returned if the dispute is mutually settled in your favor at the end.

Personal account: As mentioned above, you are using money out of your personal account when making a purchase with a debit card. While this in itself may not appear to be a problem, it can have a huge effect when fraud or disputes occur.

While the fraud or dispute may eventually be ruled in your favor, the time it takes to resolve the problem means you will not have that money in your account. This can cause other transactions to default, forcing you to pay substantial fees. If a default occurs, this can trigger universal default from the credit rating services, and the problem can continue to cascade from there. Again, these may all eventually be resolved, but because it is your account, you will need to spend the time fighting the issues all along the way to get them resolved.