Few places you should never use your debit card

A lot of people prefer using their debit cards to credit to keep their spending in check. However, like all plastic transactions debit cards too have their disadvantages. Here are 10 places you should avoid using your debit cards at.

1. Consider avoiding debit card use online

Some consumers choose to only use credit cards online since a fraudulent credit card transaction will take more time and can become an item of dispute rather than an instant removal of cash from your checking account.

2. Restaurant

I was once sitting at home in Mumbai enjoying a cup of early morning chai with my mother when I suddenly get a message saying my card has been swiped in a restaurant in Bangalore. Once the initial shock washed over I realized this was a restaurant I had visited a few days back before I boarded my flight to Mumbai.

Restaurants are one of the few places where you have to let cards leave your sight when you use them. A form of high-tech financial fraud, is on the rise worldwide. It relies on sophisticated data-reading electronics to copy the magnetic stripe information from your credit card or debit card. It can capture both your credit card number and your PIN.

3. Shady looking ATMs

All ATMs have cameras in them for security reasons; but sometimes ATM skimmers install hidden cameras that could read both your card number as well as the ATM PIN you’ve just punched in. Once the scammers have your number, magnetic strips are easy to make and thieves are able to easily reproduce ATM cards.

There have also been cases where the ATM screen suddenly blanks out after you’ve entered your PIN. Fraudsters get into the ATM and lock a key in the machine this causes the screen to blank off once a transaction is initiated. The scammers wait for you to leave the ATM and then enter after you to unlock the machine and continue with the transaction.

4. Petrol pumps

Petrol bunks are high risk for debit card users.  Gas station terminals have many characteristics that fraudsters love. The lack of supervision in the pump station, make it easy for fraudsters to place skimming machines.

5. When you’re a new customer

 Whether online or in the real world, if you're a first-time customer in a store, skip the debit card the first couple of times you buy. Only once you’re familiar with the store and are assured there is no foul play should you use your debit card

6. Expensive items

Incase of purchasing heavy duty items like a washing machine or a car it’s best to pay using a credit card. A credit card offers dispute rights if something goes wrong with the merchandise or the purchase. Also, some credit cards offer attractive discounts on purchase of consumer durables.

7. Making reservations at hotels

When making hotel reservations for future travel it maybe best not to part with your debit card information.

8. Security deposits

When making security deposits while buying items on EMI it would be best to use your credit card instead of the debit card. That way, the store has its security deposit, and you still have access to all of the money in your bank account.

9. Buy now, take delivery later

This one ofcourse is a no brainer. Incase you’re buying now but taking delivery days or weeks from now? A credit card offers dispute rights that a debit card typically does not.

10. Recurring payments

We've all heard the urban legend about the gym that won't stop billing an ex-member's credit card. Now imagine the charges aren't going onto your card, but instead coming right out of your bank account. Another reason not to use the debit card for recurring charges: your own memory and math skills.

11. Online transactions

While entering your debit cards details online; do remember that debit cards are directly linked to your bank accounts and all of your information is a sitting duck for online hackers to pry into and use.

12. Create your own security profile

As long as you remember the answers, you can make up anything you want for your security questions. Using a pet's name or your mother's maiden name makes it too easy for cons to get into your account. The answers just have to be consistent, and not necessarily truthful.

13. Check your bank statements often

Since time is of the essence to receive full fraud protection from your bank, make it a habit of reviewing your bank account online at least once a week, or even daily.

14. Protect your PIN number

Don't give your PIN number to anyone who asks and don't keep it written down anywhere in your purse or wallet. Don't use your PIN at the gas pump: use your card in the credit purchase function to avoid someone seeing it. In fact, using your debit card in credit card mode may offer you extra liability protection depending on your bank.

15. The bottom line

While you may find constantly using a debit card to be a great convenience, it won't be so convenient if someone manages to drain your account. A little bit of vigilance and some new habits on your part can go a long way to preventing a damaging debit card experience.

16. Only use ATMs at a bank

ATMs located in convenience stores, subway stations, airports and other places have a greater risk of having a "skimming" device attached by a thief, which could store your debit card data. This sometimes happens at banks, too, but it is easier to do in a place without surveillance cameras.

17. Don't use public wireless access for financial transactions

Make sure you are using password protected wireless signal to check your bank account balance, pay bills and to shop so that hackers have less of a chance to capture your password and account information.

18. Report problems immediately

While you would certainly report it right away if your wallet was stolen and your credit and debit cards are missing, you should also report any unauthorized transactions immediately, too. The faster you report a problem, the quicker you can cancel your debit card and prevent additional charges.

19. Consider filing a police report

If your debit card is stolen, you may want to contact the police so that you have extra support when you want your bank to reimburse the charges.

Many banks have improved their debit card protections for their customers, and will go beyond the above rules and not make consumers responsible for any charges deemed to be fraudulent, especially if they report the unauthorized transactions as soon as possible. Here are some rules for keeping your debit card safe:

While many consumers choose to use a debit card in order to avoid accumulating credit card debt, they may not be aware that they could lose more of their hard-earned cash through debit card fraud than if they had used a credit card for a purchase.