Protection from fraud

chocpudding

I have recently been a victim of fraud and now considering using a credit card for all my purchases to give me more protection.
What are the main differnces between CC and DC in the level of fraud protection? Can anyone recommend the best credit cards available at the moment (I would be paying it off in full every month).
Thanx

Rafter

choc,

Visa Debit cards offer good protection too if you are scared of credit cards. A credit card is effectively a loan and when you buy goods on credit in the uk the consumer credit act (specifically Section 75) makes the bank jointly liable if the goods or services arent delivered - even if you just pay the deposit on the card.

So order a sofa, make a down payment on a holiday and if the holiday or sofa company goes bust, and you have paid over £100 then you will get your money back.

The level of Fraud protection is just the same for debit and credit card. Unless you have been negligent (writing your pin number on the card, sharing it with someone, not reporting your card lost or stolen) then you will not be responsbile for any fraud losses over £50.

As for cards. If you don't want to borrow, look for the best 'cashback' deal. If you might borrow occassionally look for the lowest APR. I would strongly suggest you set up a direct debit so you avoid any late payment fees.

Some cards claim to offer additional fraud protection, but this is really a marketing gimmick rather than anything that should sway your decision.

Personally I'd recommend Egg Money - good online servicing - not the best cashback and a reasonably low APR if you do want to spread the cost of a major purchase over a few months. Always been quite impressed with their fraud protection too - you get an automated phone call if you make an unusual purchase to make sure it is you that made the purchase.

Good luck

R.