Will that be Debit or Credit? by Rico Dilello

debt-card-swipe

Most financial writers would recommend purchasing items using a bank debit card or cash instead of a credit card to control impulse buying. A debit card transaction will allow the vendor to take money right out of your bank account. It is so quick, you can see the transactions appear on your online bank statement minutes after your card has been swiped. This is good advice because spending money that you don’t have can lead to accumulating a lot of unnecessary debt.

However, my only problem with using a debit card or cash is security. Lose your wallet or purse and kiss the cash good-bye. If thieves get a hold of your debit card, the bank will not cover your loss. I am fortunate that the credit card companies in Canada have all adopted chip technology with a 4-diget Pin number for added security. Plus most retail stores even have a tap option for purchases under $100.00, so tap and go is quick and easy.

My decision to always use credit over debt, just saved me $1,470.67 because my wife’s credit card was recently compromised. The thief was very smart, only one big transaction which the credit card company didn’t red flag as an unusual purchase. I always check my monthly statements and recognized the bogus charge immediately. This is the third time in less than ten years that I have had to get a new credit card due to fraud.

The previous two times, the credit card company called me after they noticed some unusual activity. Although, it was a little embarrassing to have my credit card purchase declined but it is better than losing money. My experience with credit card fraud has made me into a frantic when it comes to making sure that I don’t lose any credit card receipts. I always cross-reference the receipt with my monthly statement. We even record each on-line purchase on a separate piece of paper and file it with the rest of our receipts.

Thieves have become very bold! I received a phone call at 6:00 a.m. from someone pretending to be from my credit card company. He stated that my credit card may have been compromised and requested that I should turn on my computer to check my debit card transactions. He wanted to get access to my banking information. Warning bells went off in my sleepy head. What the thief didn’t know was that credit card and debit card were with two different banks.

Protect yourself from fraud

  • Use a credit card for all your on-line purchases for added protection
  • Keep your receipts and check your monthly credit card statements
  • Hang up on questionable phone calls and call your financial institution
  • Use a pin number that doesn’t have any personal dates, like your birthday
  • Change your pin number from time to time
  • Share with family and friends information on current scams in your area

What is your answer to the question? Will that be debit or credit?

By Rico Dilello

 

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