Recently in the news, there have been several breaches of credit card numbers causing individuals to notice the theft of financial data. Breaches can happen. There are many dangers of debit transactions. Many people wonder if they are putting themselves in more trouble if they choose “Credit” or “Debit” when making a purchase.
Information can be stolen in many different ways, but it most often involves the card information being taken when you swipe your card. If an individual can get a hold of your information they now that direct access to your bank account. This is the moment when someone can remove all the money from your account in a matter of minutes.
Something else to remember is that by choosing the debit option, and entering your a personal identification number (pin), you can place your bank account into more danger.
What is the Difference
Many people confuse credit with debit transactions. A debit transaction will require the use of pin number. This pin number will authorize the transaction. This transaction is completed through a debit network. This network connects to your bank.
A credit transaction is different because you are not required to enter in a pin number. You are on the other hand required to sign for the purchase. This is different because the transaction is connected through the credit card company and not an external network.
It is important to know that every day that you use your debit card to purchase something at the grocer or the gas station you have the ability to have your information stolen. This could be you bank information or other financial data.
Knowing the dangers of debit can help you to choose the best option for your purchase, however generally it is better to choose credit when making purchases. When you are using the credit service, you are able to benefit from a regulated and certified security measures. Credit card companies have a tendency to have more complicated fraud alert abilities. These alert services are able to find abnormal activities. Many times these activities are found and dealt with quicker than you could have found them on your own.
When you find a fraudulent debit charge is found, it can take weeks to resolve the situation. During this time, you will have lost your money, and sometimes you never get it back.
It is also important to know that sometimes it is cheaper to use the credit service. Many banks have a transaction fee, and this is calculated every time you put your pin number in.
It is important to remember that you can always request to process the transaction through the credit option. It is not always the default for the retailer; it is more secure than using the debit option with all the dangers of debit.
When you are using credit transactions the charged does not always, show up immediately so you want to be sure that you keep a good running total of your monies spent. This can help to ensure that you do not go into negative with your account.
Precautions to Take
It is important to know some precautions that you can do to help save yourself from the dangers of debit.
- Protect yourself. Whenever you are entering your pin number, you might want to make sure that no one was watching. You might even want to cover up the pin pad with your other hand when typing in your pin number. This is one way that you can be sure that someone is not spying your numbers.
- Inspect critically. It is important to really inspect the ATM machines as well as the swipe pads. This is to make sure that no one is gaining access to your information when you swipe your card. Some of the places that are targeted for people to use skimming machines are places like kiosks, gas pumps, as well as public ATM’s.
Over the holiday season, Target became subject to a large amount of information breach. This type of breach made many people and their financial information vulnerable. Each individual that purchased something using his or her pin number was a possible victim of this type of financial theft. However, not only was their pin number at risk, but also they had the chance of someone removing funds from their bank accounts.
By using the credit options instead of debit, you are ensuring that the money held within your bank account cannot not be compromised. Even with the dangers of debit, you do not have to be a victim of fraud if you chose to use the credit option while making purchases.
Above all make sure that if you are ever to notice any fraudulent purchases, contacting your bank as soon as possible is the best in this situation.