Credit cards seem to be the safest alternative when you’re going to be away from home, although you will need some cash, and thus might want to take your debit card.
If carrying large sums of cash makes you nervous, your debit card will allow you carry only enough cash for a day or two, because you can make periodic withdrawals from your checking account. But be careful with that debit card!
Of course you should also be careful with your credit cards – carrying only one and leaving the others locked in the hotel safe or in-room safe. But debit cards carry additional risks.
For safety’s sake, plan ahead so you know where to find legitimate ATM machines. Savvy crooks have figured out how to install phony ATM machines in high-traffic tourist spots, and using one could result in identity theft and an empty bank account. If your hotel has an ATM machine, it is probably legitimate, as are those in airports and banks.
Rather than carry the card for multiple withdrawals throughout the day, plan ahead and make as few withdrawals as possible. This not only helps ensure safety, it cuts down on those $2-$5 ATM fees.
As with your credit cards, let the bank know ahead of time that you’ll be on vacation. Otherwise they could freeze your account, thinking incorrectly that charges made away from home are the result of a theft.
Theft can be more serious with a debit card than a credit card, so if your card had indeed been stolen, you’d be thankful for their interference.
Unless you report the loss to your bank within 2 business days, you could be liable for up to $500 in unauthorized withdrawals. If you report within the 2 days, your liability drops to $50. BUT, while you’re disputing the withdrawals and waiting for the funds to be returned, your bank account is just as empty.
This could have serious consequences if the money for your day to day expenses, such as a house payment, car payment, and utility bills disappears overnight.
Disputing charges is also more difficult with a debit card than a credit card. Say you’re on vacation and see a beautiful painting, so you buy it and arrange to have it shipped home. If it never arrives, having the charge removed from your credit card is reasonably easy. But once the money has been taken from your bank account, getting it returned is not.
Author: Mike Clover
CreditScoreQuick.com
