Those protections are the main reason it’s recommend to use credit cards instead.
But it doesn’t make sense to me, why would I borrow money (credit) if I had it (debit)?
My guess is that banks deliberately do this so people can accidentally spend more money than they have and companies start charging interest.
In: Economics
You’re protected from fraud either way. The problem is that it may take some time to get the money back and there are some big things like rent, mortgage, and utilities that need to be paid from a bank account with an actual cash balance. If someone fraudulently charges a few thousand to my credit card, it isn’t a big deal. I still have the cash balance to pay my rent and eat until things get straightened out. If my bank account gets drained, it could result in late fees and credit score problems when I miss a big payment. Plus I may not be able to eat and get gas if I don’t have sufficient credit elsewhere.
Latest Answers