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
Credit card: “I’m buying this now. The credit card company promises that I’m good for it. They’ll pay you in a little bit, then I’ll pay them back later.”
Debit card: “Here’s my money. Take it. Now you have that money and I don’t have it anymore.”
Credit card companies offer more protection because they’re an intermediary, and it’s in their own best interest to prevent fraud since they’re directly involved.
Debit cards are effectively the same as giving them cash. You have just as little protection as if you gave them cash.
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