Know How to Use Credit Cards and Debit Cards Securely

Debit and credit cards empower us in different ways, and you can use any one for online payments. To use them to your advantage, it’s vital to understand the differences between a credit card and debit card and be careful about safety.

Both have:

A 16-digit number
A CVV
A magnetic strip
An expiration date

Know the Difference Between a Credit Card and Debit Card

Credit Card	Debit Card
It allows you to make purchases and payments by borrowing from the card provider It comes with a limit known as the credit limit A good credit score is necessary to apply for a credit card	It is linked to your bank account A purchase is made with funds drawn from the account You can only spend the money available in your account You don’t need a good credit score when applying for a debit card

Fraudulent Activities Using Debit and Credit Cards

Credit card and debit card fraud occurs when a person illegally gains access to your information and uses it to make purchases. Fraud involving credit cards is quite different from fraud involving debit cards.

Credit cards provide enhanced protection from cyber-attacks, financial fraud, and security breaches. They provide better liability protection against fraudulent activities in comparison to debit cards.

Frauds involving credit cards:

Credit cards come with credit limits, and in the worst-case scenario, scammers can exploit only the available credit limit
If your credit card is misused, scammers access credit provided by the financial company and not your personal funds
By contacting customer care and reporting fraud, you aren’t liable for any unauthorised payment due to lost/stolen credit cards
You will face some inconvenience due to fraud, like blocking your card or applying for a new one
If the scam amount is enormous, your card provider may reduce your credit limit and suspend your credit card for some time as it investigates the scam and resolves the issue

Frauds occurring in debit cards:

Scammers will have access to your entire bank account, and they can completely deplete it
It may be possible to get your money back if you report this quickly
Such frauds can make it challenging for you to address day-to-day expenses like paying bills and purchasing groceries

Most credit and debit cards have zero liability protection. So, if you’ve reported a stolen/lost card before any fraud occurs, you’re charged nothing. If you have a credit card, you will not pay to pay out of pocket even if you report the issue after the fraud occurs.

When it comes to debit cards, your protection may be limited by a specific amount or the number of days it takes for you to report a fraudulent transaction. This varies from bank to bank, and you should be wary about it so you can protect your finances.

Credit Card vs Debit Cards: How to Use Safely

Credit and debit cards can be used safely if you are aware of the liability protection they offer.

Having a better understanding of when to use a credit card versus a debit card can also be a good way to avoid scams and fraud.

Credit Card Usage

Debit Card Usage

Paying for hotel bookings with a credit card is safer, as a credit card just adds a hold to your credit limit (as a deposit), while a debit card pays in full with your funds
Pay using your credit card if you are making a big payment with an unfamiliar retailer
Check if your credit card comes with purchase protection, which helps you get your money back if a product you buy is damaged, gets stolen or turns out to be not what you’ve expected

Have an idea about when merchants add a convenience fee on credit card payments and use a debit card to save money in such instances
Pay with a debit card if the merchant is known to you, and you have the funds you need in your account
Avoid debt by using a debit card if you have a sufficient balance

How to Avoid Falling Victim to Fraudulent Activities

Avoid letting your card details fall in the hands of scammers by not shopping from unauthorised or fake websites
Monitor your account regularly to identify any unauthorised transaction
Opt for contactless payment as they are comparatively safer than handing your card over
Store your debit or credit card information only on secure trusted sites and use a password manager to lock all the information
Use password lockers that use two-factor or multi-factor authentication to ensure your information cannot be easily accessed by scammers
Make sure you keep the financial company’s app or customer care number handy so you can block your cards if they are every stolen or lost without any delay

Credit cards are considered a safer option, offering protection against fraudulent online transactions, and giving you access to a range of deals. To boost your safety and get instant access to funds, apply for a credit card after comparing the various options available in the market.

The One Credit Card can be an excellent choice as you can track every transaction using its full-stack app. The One Credit Card App also helps you take prompt action if you notice any instance of fraud by letting you reset your PIN or block your card.

This lifetime-free card doesn’t come with any joining fees, annual fees or hidden charges. You can earn up to 5X monthly reward points on the top two spending categories and get great deals across partners like Zomato, Croma, Blinkit, LG and more. Apply now to enjoy all these perks safely and securely.