Originally Posted By: Mark_M
The danger with debit cards is that if a merchant makes a mistake or commits fraud, that money is GONE from your account.


With debit cards you are guilty until proven innocent. The money is gone and you can end up liable for fraudulent charges under many circumstances, with no limit on the amount.

With credit cards, federal law is that you're innocent until proven guilty. An assertion of an erroneous or fraudulent charge immediately suspends any attempt to collect the disputed monies, and the credit card company cannot hold you liable for fraud over $50 (most cards have a policy reducing that to $0).

My credit union sent us debit cards to replace our ATM cards; I insisted that they be replaced immediately with ATM-only cards.