Why it’s risky to use your debit card at the supermarket

I often see people paying with debit cards in grocery stores, and on the face of it it can seem like a good idea. Millennials have seen what credit card debt did to their parents and don’t want to fall into the same trap, and new immigrants don’t have the credit history to have a credit card.

Your debit card data can be stolen in many ways

The problem is not using the debit card. The problem is fighting fraudulent charges when your card data is stolen. This can happen in many ways: card skimmers installed at ATMs and gas pumps, or store clerks swiping your card twice, once in the cash register and once on a small skimming device. PINs can be recorded with small hidden web cams that you can buy on eBay for less than your daily grande soy latte. If you use your debit card for online purchases, the online store may get hacked and your debit card details stolen.

You end up holding the bag when your debit card is abused

With credit cards, you can report fraudulent charges within a certain time limit and they will reverse them. Unlike credit cards, most banks hold you responsible for any fraudulent charges on your debit card. This means you can’t just call up and reverse the charges. You may be liable up to (and possibly beyond) the balance of your checking account.

Unlike credit cards, most banks hold you responsible for any fraudulent charges on your debit card.

But there are easy and free ways to protect yourself.

Don’t use your debit card to pay for stuff

Simply don’t pay with your debit card. Credit cards are a convenient way to pay, and you can even collect points. Some stores like Aldi and Costco prefer debit cards and some corner stores don’t take credit cards under a certain amount; pay cash in these cases. If you don’t have a good enough credit score, get a secured credit card, which protects you just as well and builds your credit. Try to pay off your credit card every month to control your spending and save money on fees.

Set up an alert for debit card transactions

Download your online banking app and check out the settings. Most apps now have a section called alerts that notify you of deposits or low balance. Look for an alert that says “alert on transactions over” and set the amount to zero. This means you will get a notification on your phone each time the card is used. That way, you know the instant something bad happens and are quick to react.

Lock your debit card when not using an ATM

Also in your online banking app, look for a feature to lock your debit card temporarily. Lock your card and only unlock it briefly when you go to an ATM. It’s a better use of your time and doesn’t take longer than checking if you have new email.

That’s it. Your debit card is now secure and you can live happily ever after.