5 places you should not use your debit card (2024)

FAQs

Where should I not use my debit card? ›

Only utilize ATMs associated with a bank; stay away from potential “skimming” locations such as gas stations and deli kiosks. Report a lost or stolen debit card immediately to your bank and cancel the missing card.

If you overspend, you could get hit with costly overdraft fees: If charges to your debit card cause your checking account balance to go negative, you could suffer overdraft fees and other steep charges that far exceed the potential costs of using a credit card.

Every store takes your debit card, there are ATM kiosks everywhere, and now you can even tap your phone in a store to pay with stored financial information. However, this convenience also makes it easy for scammers to get your financial information and take your money from you.

The stakes of becoming a victim of fraud are especially high for debit card users because your bank account is directly linked. A fraudster could quickly drain your bank account with fraudulent purchases before you even realize your debit card number has been compromised.

Bank investigators will usually start with the transaction data and look for likely indicators of fraud. Time stamps, location data, IP addresses, and other elements can be used to prove whether or not the cardholder was involved in the transaction.

Though it isn't always avoidable, paying with a debit card at retail stores can make consumers vulnerable to skimmers. An alternative to swiping your debit card is using a contactless payment method.

Despite their convenience, debit cards carry risks that have serious financial consequences. A stolen number, PIN, or security code can result in unauthorized transactions, overdraft fees, bounced checks, an empty bank account, and even personal information breaches.

Credit cards usually offer greater consumer protections on purchases related to fraud than debit cards.

The smart chip is not a locator system, so the physical location of a credit or debit card cannot be tracked. Also known as an EMV chip, this smart chip embedded on your card creates dynamic data for every transaction, which makes it less likely for criminals to steal or clone your information.

Can someone use my debit card without my PIN? ›

Fraudsters can still use your debit card even if they don't have the card itself. They don't even need your PIN—just your card number. If you've used your debit card for an off-line transaction (a transaction without your PIN), your receipt will show your full debit card number.

Similarly to card skimming, card scanning is a type of payment card theft where the fraudster with a scanning device gets close enough to your bag or wallet to scan your card number. This type of fraud is enabled by the fact that today's payment cards typically work on Radio Identification Frequency (RFID) technology.

Some ATMs will charge withdrawal fees, and if you use more than the agreed overdraft limit then the fees tend to be much greater than those incurred by credit card usage. Another disadvantage of debit cards is the fact that they have limited funds, which can slow down business.

That means your debit card will be “declined.” You will not be able to buy things. Some banks and credit unions might let you sign up for “overdraft protection.” That means you can use your debit card even when you do not have enough money to pay for the things you are buying.

You've got to see them in the full context of payment methods that generate commissions for banks. And guess what? Banks make more money--a lot more money--from debit cards than they do when you pay for your merchandise by check or cash.

You can use your debit card in most stores to pay for something. You just swipe the card and enter your PIN number on a key pad. Debit cards take money out of your checking account immediately. Debit cards let you get cash quickly.

Your debit card may be denied due to overdrafting, reaching daily purchase limits, or your bank suspecting fraud.