Credit, Debit or what? that is the question.

Legacy_user

"Of the two, credit and debit cards, which is safest to use when purchasing items on the internet?", that was the question posed to me by my wife when she learned that someone had tried to gain £7000 off her sisters credit card.

I said it has always been my understanding that credit cards offered more or better security, however I have always used a debit card or paypal.

Later, something crossed my mind and I'm unsure if I've dreamt or read it, and that is to use a card specifically for internet transaction, is this so? and if it is, perhaps someone would offer a few words of wisdom as no doubt this subject won't drop in our house, especially as today I bought a dyson on-line.

PeacefulWaters

Credit card gives you the broadest protection.

grumbler

Security is the same.
So is Chargeback protection.
Section 75 protection is for CCs only, but for most day-to-day transactions you hardly need it.

jonesMUFCforever

When you use a credit card it is the bank's money at risk if you are hit by fraud.

tripled

Generally speaking there are two main advantages to using credit cards online:

1) If something goes wrong (say a duplicate transaction, fraud or a faulty item), chargeback is available to both credit and debit card customers in most cases (where the bank will dispute the transaction and may reverse it for you).

However, credit cards also offer protection under Section 75 of the Consumer Credit Act, which means that the credit card company is equally liable with the retailer for the transaction. Lets say you buy a hoover and soon after your hoover is delivered the retailer goes bust. Six months later the hoover breaks down. You can pursue your case under the sale of goods act (or whatever its replacement is called) against the credit card company, which is not possible against the defunct retailer (and it'll be too late for a chargeback).

2) If fraud does happen and your card is rinsed, it doesn't affect your current account and so your normal direct debits will be paid, you should still have money for food and rent, etc.

Also you can get cashback credit cards as well, which is a nice little bonus