If there’s fraud on a credit card, the bank fights to get their money back. If it’s fraud on a debit card, you fight for your money. Also if there’s fraud on your debit, that’s money out of your bank account that immediately affects you. With credit, it doesn’t at all. Debit has much weaker liability then credit, and also a time limit where you just lose all money if it’s not reported right away, with no limit to how much you can lose if you don’t get it back in time (usually 60 days). That trust that you won’t go in debt with credit cards is essentially why the credit system exists, to measure that. There’s nothing that has to do with morals, it’s just a payment method.
The bank is fighting for their money because as long as you report it in time they are legally required to refund all but a small amount. The refund for the fraudulent charges has nothing to do with the banks ability to get their money back.
What I was just advocating for, is taking ownership and control of the risk. If it’s your own entire bank account perhaps with a few thousand dollars, that risk is thousands of dollars. By segmenting that you can reduce it to dozens of dollars in which case, no matter the coin flip of bank fraud and money return, you’re never putting your eggs all in one basket.
I don’t think you understood what my comment said. Fraud is prevented with credit cards, and that risk isn’t there. It’s smarter to use credit over debit, any bank will tell you that.
Also like I said witt Debit, if there’s fraud then you’re out of that money until it’s returned. With credit, you will still be able to keep using it instead of potentially overdrafting/denied on a debit card. Or in the case of a prepaid travel card, you’d just run out, which would especially screw you over while traveling if that’s your only method of payment. On top of that, it’s easier to get scammed as a foreigner.
If you’re still interested in learning, search engines are your friend. I am not a financial advisor.
If there’s fraud on a credit card, the bank fights to get their money back. If it’s fraud on a debit card, you fight for your money. Also if there’s fraud on your debit, that’s money out of your bank account that immediately affects you. With credit, it doesn’t at all. Debit has much weaker liability then credit, and also a time limit where you just lose all money if it’s not reported right away, with no limit to how much you can lose if you don’t get it back in time (usually 60 days). That trust that you won’t go in debt with credit cards is essentially why the credit system exists, to measure that. There’s nothing that has to do with morals, it’s just a payment method.
The bank is fighting for their money because as long as you report it in time they are legally required to refund all but a small amount. The refund for the fraudulent charges has nothing to do with the banks ability to get their money back.
What I was just advocating for, is taking ownership and control of the risk. If it’s your own entire bank account perhaps with a few thousand dollars, that risk is thousands of dollars. By segmenting that you can reduce it to dozens of dollars in which case, no matter the coin flip of bank fraud and money return, you’re never putting your eggs all in one basket.
Risk management is more than good insurance.
I don’t think you understood what my comment said. Fraud is prevented with credit cards, and that risk isn’t there. It’s smarter to use credit over debit, any bank will tell you that.
Explain the risk of fraud with a travel card.
Feel free to keep using a travel card
Also like I said witt Debit, if there’s fraud then you’re out of that money until it’s returned. With credit, you will still be able to keep using it instead of potentially overdrafting/denied on a debit card. Or in the case of a prepaid travel card, you’d just run out, which would especially screw you over while traveling if that’s your only method of payment. On top of that, it’s easier to get scammed as a foreigner.
If you’re still interested in learning, search engines are your friend. I am not a financial advisor.
I’m trying to get you to validate your point.
Risk 1: identity theft. Doesn’t apply, travel cards aren’t a form of identity. If stolen they can not be used as identity.
Risk 2: money theft. Largely mitigated to minimal amounts trivial if not returned.
I get it, you don’t like this conversation, you’d rather I do my own research than discuss alternatives any further. I won’t reply after this.