Quote:
Originally Posted by Phillies8008
While this is true, the one key difference is that debit cards draw the cash out of your account immediately, so that cash will be gone until the dispute is resolved. A credit card, on the other hand, is paid in arrears so there's no cash-outlay during the time it takes for the dispute to be handled. In fact, the couple of disputes I've had for credit transactions actually froze the transaction until the dispute was resolved, so I wouldn't pay for it even if it spanned a billing period.
Additionally, while superior in many ways, my credit union is not particularly fast and the one dispute I've had to do with them took a couple of weeks. To me, that's a pretty big downside for the debit vs credit payments debate.
I never use debit over credit – not for any security concerns per se, but more of a "why would I want to?" consideration. There's no compelling reason, and I get cash-back from credit cards. I essentially treat them as debit transactions anyway, paying the entire balance each month. So why not? Outside of not getting ripped off with businesses pushing their transactions fees on to me, there's not really much of a compelling reason to use my debit card.
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The cash is not necessarily gone until the dispute is resolved if you bank with an institution that immediately restores the funds to your account pending their investigation. Yes I understand that many banks do not do this so YMMV.
I don't believe anyone in this conversation has suggested using debit over credit for security. It is only suggested as an option to avoid the "convenience" fees applied to credit cards. Some are afraid of the risk they associate with using their debit card. My point is that making a debit tap to pay transaction at your BMW dealer carries an extremely low likelihood of potential fraud on that singular transaction along with the token authorization for that single transaction so it cannot be used to complete any additional transactions. Your actual bank account information is never transmitted to it can't be accessed.
The potential for fraud is there with debit, but it is not from making a payment to a reputable merchant using tap to pay.
Would I hand my debit card to a restaurant server? No.
Would I use it over the internet? No.
Would I use it at a BMW dealer to avoid a 3.75% convenience charge for using a credit card? Yes.