People have a very specific comfort zone in terms of spending money.
You may be a cash lover, and you are more likely to be anonymous than convenient.
Maybe you are a whole
No credit type with cash for years.
Or you can use your debit card. -
You have the simplicity of plastic, but there is no temptation to crazy interest rates and spend money you don't have.
If debit cards are important to you, you are not alone: as of September 2010, about 0. 52 billion Visa and MasterCard debit cards were in circulation, and by the end of that year they generated more than $1.
Purchase [3 trillion]
Source: Woolsey and Schultz.
It is understatement to say that debit cards are popular.
Most financial experts believe there is no best way to pay.
This is just a matter of personal preference.
But what should you use when shopping online?
If you are a debit card person, should you stay in the comfort zone when you shop online?
Debit cards should not be used to pay for online transactions, though you may resist;
Credit cards are always more secure for e-commercecommerce.
When you use a debit card, you are not protected by fraud and disputes with these cards can be difficult to resolve.
Also, if someone steals your debit card number, your entire bank account is vulnerable.
Credit card users are protected by the Lending Act, which states that if you report the loss or theft of your card before an unauthorized transaction, you do not assume any debt.
Also, there is a $50 limit on liability even after your lost card is used [source: Block].
The Electronic Funds Transfer Act, which regulates the use of debit cards, is a bit complicated.
You only have to pay $50. -
If you notify your financial institution within two days of realizing that your card is lost or stolen.
If you speak within 60 days from the date of the mailing statement (
View your monthly financial statements to identify any unauthorized transactions)
You may have to spend $500.
Wait longer and you can be responsible for each transaction-
Your bank account is likely to lose every penny [source: Block].
Most banks offer zero.
Debt debit cards, so you may not be completely emptied if an online debit card transaction goes wrong.
But if you're really going to get involved in a dispute, you're almost on your own (
Unlike a credit card dispute, when the card issuer goes to bat for you).
This is your money and you may have some serious cash flow problems when the problem is solved.
No matter how you pay for online shopping, the next page has tips to protect your personal and financial information.