How safe is it to use debit cards for online shopping?

1

To get a better handle on our budget should I quit using credit cards for online purchases such as Walmart. And use debit card instead. Credit cards are our weakness in the budget.

2

Yes. Using a debit card for online purchases would be advisable. However, debit cards do not have as good liability protection if fraud occurs. Consider linking your debit card to an account that has a limited balance and monitor your account for fraudulent withdrawals

3

Maybe link your debit card to Paypal and use Paypal to pay.

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4

:smiley: Sounds like a good idea

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5

Per ChatGPT:

" How safe is it to use debit cards for online shopping?

ChatGPT said:

Good question — the safety of using a debit card for online shopping depends on the protections you want and the risks you’re willing to take. Here’s a breakdown:

:locked: Pros of Using a Debit Card Online

  • Direct access to funds: Quick payment without going into debt.
  • Bank protections: U.S. banks are legally required (under the Electronic Fund Transfer Act) to offer some fraud protection if your card is stolen.

:warning: Risks Compared to Credit Cards

  1. Immediate access to your money
  • If your debit card number is stolen, the money comes straight out of your checking account.
  • Even if the bank reimburses you, you might not have access to those funds for days or weeks.
  1. Weaker fraud protection
  • Credit cards usually have zero liability policies.
  • Debit cards also have fraud protection, but it depends on how quickly you report it:
    • Within 2 business days → max liability $50.
    • Within 60 days → max liability $500.
    • After 60 days → you could lose all stolen funds.
  1. Disputes are harder
  • With a credit card, you can dispute a charge and not pay until it’s resolved.
  • With debit, the money is already gone, so it’s up to the bank to investigate and refund.

:white_check_mark: Safer Ways to Use Debit Online

  • Use a credit card instead (best option for online purchases).
  • If you must use debit:
    • Use a separate account just for online purchases.
    • Enable real-time alerts on your bank app.
    • Use trusted payment processors (PayPal, Apple Pay, Google Pay) instead of entering your card directly.
    • Avoid public Wi-Fi when entering payment details.
    • Only shop on secure sites (look for HTTPS and reputable retailers).

:backhand_index_pointing_right: Bottom line: Debit cards work, but credit cards are much safer for online shopping. If you prefer debit, using it through a digital wallet (PayPal/Apple Pay/Google Pay) or with a dedicated low-balance account is a safer compromise."

6

I would not do it, personally.

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7

I use CC for on line purchases.

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8

HEY I found out something cool… you can more safely use a debit card for in-person retail transactions… TAP TO PAY using your phone:

I just added my debit card, and it’s still locked up at the bank site, so even if they hack into my wallet site, they don’t have anything.

How Tap to Pay Protects Your Card Info

Tokenization: Instead of sending your real card number, Android Tap to Pay (via Google Pay or similar) generates a one-time-use token for each transaction. This token is meaningless if intercepted—it can’t be reused or traced back to your card.

Encryption: The transaction data is encrypted and sent securely to the payment terminal.

Short-range NFC: Tap to Pay uses Near Field Communication (NFC), which only works within a few centimeters—making remote interception nearly impossible.

No static card data: Unlike swiping, which transmits your actual card number and magnetic stripe data, Tap to Pay keeps that info hidden.

9

There are so many reasons why debit cards are inferior to credit cards. But number one is that so many cards offer 2%-5% rebates, and you’re just leaving free money on the table. Will anyone get rich from these rebates? Probably not – unless they put that money into an investment that scored big. But, it can amount to thousands a year with zero effort.

If you’re unable to manage your impulse control, maybe you could have a bank lower the spend and/or total limit on a credit card to a very low amount to help keep you in check?

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10

When the terminals are set properly, this is true: Short-range NFC: Tap to Pay uses Near Field Communication (NFC), which only works within a few centimeters—making remote interception nearly impossible.

However, when the terminals are cranked up OR a scammer has equipment with boosted power, NFC can go much further. You should have your NFC cards in RFID shields.

11

Debit? No, no! hell no. Let me be clear, no.:grinning_face:

Your CCs are not the issue, you need financial discipline. I’m not judging, I’ve done this battle for 50 years. DCs offer only the protection the issuing bank is willing to offer. My checking is with USAA who has been pretty solid on issues. I still do not trust them.

I have not used a DC online in 20 years, and I have regularly chastised my children if they do so. CCs are free - IF YOU PAY THEM OFF.

I use Citi out the wahzoo. One feature on these cards is I can create a virtual account with VERY limited spending. So, if I’m going to some oddball site for a $50 purchase, I can create a virtual card that has a credit limit of $100. If things go sideways, I kill the virtual card, and my primary card is fine.

Now, let’s talk about your DC. I admit I do not know if you can create virtual accounts with it, but I’ve not seen it yet. That DC is typically tied to your checking. If someone hijacked your checking account, imagine the pain…

12

Tell me how you REALLY feel! :slight_smile: We ARE cutting back on CCs because it is a weak link. I am getting the new OnePay CC for Walmart and just use it for groceries. But I understand the merits of using CCs and virtual cards online.

13

You need a written realistic budget that covers first your necessary spending (mortgage, electric, etc.) and secondly discretionary spending. Then you need to keep track of how your spending tracks with your planned budget.

Whether you use a credit card, a debit card, cash, PayPal or some other method of paying for budget items is immaterial; what is important is sticking to your budget.

All that said, paying online with a debit card is frought with concern. If your card is hacked, all your funds in any account to which it may be linked can be siphoned off, and there are fewer protections for you, the consumer.

14

forgive me, my first response was over the top. let me clarify.

I would never allow some online company access to my checkbook. That’s what your DC does, and if there is an issue, you are screwed. Unless your bank steps up. The CC protects you from fraud, and fraud is out of control. That’s where my passion is, and I munged it with comments on spending.

Having raised 11 children, 7 cars, insurance 6 sets of ortho, I understand life and trying to get to the end of the month before the budget ran out. Sorry about that. Keep paddling and if you hear banjos, paddle harder :slight_smile: Peace