My opinion, I think, has been pretty well documented: Financial gurus (namely, Dave Ramsey) who suggest that people should entirely shun credit cards and use only debit/ATM cards for purchases are flat-out wrong.
Debit cards bring great convenience, yes. But the benefit they offer that's so fabulous for consumers — immediate access to available funds — is also their greatest liability. That immediate access is available to anyone who gets their hands on your info, too. And your Hometown National Bank almost certainly does NOT maintain the same security measures for card usage as do the large banks who manage your credit-card accounts.
Anyhow, I had the opportunity recently to interview a young couple whose checking account was compromised, thanks to debit-card fraud, to the tune of roughly $500. If you're interested, you can read the interview here:
Interview with Bob and Sue Smith, Debit-Card Fraud Victims
Labels: Banking, Credit Cards, Debit Cards
