Debit Card Vs Credit Card | Fusion - WeRIndia

ATM and debit card frauds have been increasing in the country. However, several people are using cards due to various measures taken by the government to promote digital transactions.

At the same time, the RBI and many banks are taking several steps to control debit card frauds.

Nowadays, many people have credit cards. So, some fraud experts suggest that using a credit card is better than a debit card.

Here are the reasons for that:

• Credit cards have a credit limit set by the issuing banks. Hence, the fraudsters cannot make large withdrawals with the card. However, fraudsters can use the card for online purchases. To avoid this, you can set a maximum limit of daily purchase for your credit card. So, the purchases cannot be made beyond the set limit. Yet, the limit might also affect you as you cannot purchase beyond the limit.
• If you are using a debit card, it means you are using your money in the bank account that earns interest. On the other hand, if you use a credit card, you would pay with the bank’s money and the bill can be paid at a later date without any extra charges.
• In case of a data breach, you can simply report the fraud to the banker immediately and ask for the cancellation of your credit card. But, in case of a debit card, it is completely your responsibility. Even if you report to the bank, the money already deducted from your account may be hard to recover from your bank. Moreover, you have to follow lengthy claim procedures to get back your money. In the worst cases, your money will never get back if it is proved that the fraud was caused due to your negligence.

Experts suggest certain tips to prevent frauds:

• RBI introduced tokenisation system where users can create alternate codes to the details of credit card or debit card to make payments.
• Erase the CVV number on the card and memorize it. Though it is difficult, it is one of the best ways to prevent online frauds.
• Check your balance more often to track your transactions and balance.
• Reduce the use of cheques as they can also pose a security threat.

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