Credit card or Debit card?

Ialwaysgetdone

My Debit card was cracked so I went into my bank to order a new one. Whilst asking me questions relating to my account the teller asked me if I used my debit card for online shopping, I said yes, always.

She said I shouldn't be using a debit card I should be using my credit card as I would not be covered for online fraud with a debit card.

My credit card is a HBOS one, the same as my bank is, is the teller trying to get me to use it for my benefit or the bank's benefit? She is always trying to get me to change to another account or take out insurance, in fact I dread going in there these days. Thank god for online banking.

Although I have a credit card I never use it, it's only there in case of an emergency as I am of an age where throughout our lives if we couldn't afford something we simply didn't get it, anything we wanted to buy was saved up for first, credit cards are relatively new to us.

I really don't want to start using a credit card and have a bill coming in every month even though it would be paid off, but at the same time I don't want to not be protected.

I NEVER buy anything over £100 (or anywhere near that) online, maybe £40 at most so wouldn't be covered by a credit card for non delivery etc anyway and I know that you can get a chargeback with a debit card as well as a credit card though not sure if that is only for stuff over £100 also?

Apologies for the long-winded post

lisyloo

The benefits of using a credit card are

1) interest free period
2) protection over £100
3) some have cashback rewards e.g. 1%
4) some have additional insurance e.g. against theft, or additional warranty.

I think the teller was probably correct, but only you can decide whether the benefits above apply to you.
The additional insurances could come in useful on some cards (they don't all have it).
I've rarely used it, but I did use a "price matching" feature on one card a few times, where you get money back if you find something cheaper.
The additional warranty on elecrtical items could be something useful.

So in general the teller was correct, but they did not know your personal circumstances, so only you can decide what applies to you.

Ialwaysgetdone

Thanks but disregarding all the cashbacks and interest frees and other perks - is she correct in saying I am not covered for online fraud in that if I use a debit card online and someone gets my card details and buys something fraudulently, I'd lose my money? but I would get my money back if I'd used a credit card instead?
Where does a chargeback come into play, is that only for faulty goods or something and not fraud?

Any

http://www.moneysavingexpert.com/shopping/consumer-rights-refunds-exchan#pay

Martin's article.

I have to say I would never ever pay for anything bought over the internet on debit card.

dazza.mk

Ialwaysgetdone wrote: »

Thanks but disregarding all the cashbacks and interest frees and other perks - is she correct in saying I am not covered for online fraud in that if I use a debit card online and someone gets my card details and buys something fraudulently, I'd lose my money? but I would get my money back if I'd used a credit card instead?
Where does a chargeback come into play, is that only for faulty goods or something and not fraud?

You lose Section 75 protection, on top of that it probably isn't as clear cut as saying you will not have any cover, but the important point is that the 'fraudster' will have spent your money until the bank have completed any investigations and made the refund, if the fraud was commited on a Credit Card they have spent the banks money, and when this is refunded the bank chould refund any interest and/or charges that have been incurred as a consequence of the fraudulent transaction.

Tallymanjohn

I have to agree with dazza - if your debit card is compromised then it's your money, if it's a credit card then it's the bank's money as well & they take a bit more interest in it.

I have a credit card with a lowish limit that I use solely for on-line purchases. I can service it on-line, the same as my bank account, so I always pay it off by the end of the month, or more usually within a few days but it just gives me peace of mind - even when paying hotel & restaurant bills I prefer to use my credit card & then pay them off when I get home.

Ialwaysgetdone

Thanks everyone that is excellent, I will be using my credit card from now on for my online purchases.

Just one more thing as Columbo would say, does anyone know if credit cards are allowed to fund and withdraw from online betting sites? Betfair to be precise

lisyloo

If you fund and on-line betting site then it's considered a cash advance (so are ATM withdrawals and buying foreign currency). Generally I think vouchers are treated as a purchase.

So you would get charged interest straight away.

I'm not sure if you can withdraw TO a credit card from betfair, but that would be OK, because it's a credit not a debit. But betfair probably transfer to a bank account.

Ialwaysgetdone

Thanks lisyloo

Ialwaysgetdone

Hmmm, it's not as straightforward as I thought. I was intending using the credit card for everything, including in shops which I have been doing for the past few days but there are a few cases where you can't use a credit card online and there are those who charge you extra to use a credt card

never-in-doubt

lisyloo wrote: »

If you fund and on-line betting site then it's considered a cash advance (so are ATM withdrawals and buying foreign currency). Generally I think vouchers are treated as a purchase.

So you would get charged interest straight away.

I'm not sure if you can withdraw TO a credit card from betfair, but that would be OK, because it's a credit not a debit. But betfair probably transfer to a bank account.

Betfair, as with most betting sites, usually credit the same card/account used to register with regardless of type (i.e. amex/visa/mastercard or debit card).