Credit cards have become one of, if not the safest way to pay for purchases. Using a credit card is safer than a debit card because it is not directly linked to a checking account and you can often dispute charges if something is wrong.
Here are a few situations on Black Friday, where you may be better suited to use a credit card:
- Online. Since the debit card links directly to a checking account, don’t use a debit card online, you have potential vulnerability there. Also included in the category are phone orders.
- Big-Ticket Items. With a big ticket item, a credit card is safer. A credit card offers dispute rights if something goes wrong with the merchandise or the purchase. With a debit card, you have fewer protections. In addition, some credit cards will also offer extended warranties. And in some situations, such as buying electronics or renting a car, some credit cards also offer additional property insurance to cover the item.
- If You’re a New Customer. Online or in the real world, if you’re a first-time customer in a store, skip the debit card the first couple of times you buy. That way, you get a feel for how the business is run, how you’re treated and the quality of the merchandise before you hand over a card that links to your checking account.
- Buy Now, Take Delivery Later. Buying now but taking delivery days or weeks from now? A credit card offers dispute rights that a debit card typically does not. But be aware that some cards will limit the protection to a specific time period. So settle any problems as soon as possible.
For more fraud protection tips, click here.