5 Places Never to Use Your Debit Card

NEW YORK (MainStreet) – No doubt about it, debit card usage is a big part of the new normal on Main Street these days as consumers try to manage credit card debt.

According to the TSYS & Mercator Advisory Group Debit Survey 2011, debit is now  the preferred payment type in most point-of-sale locations, beating cash, credit cards and checks.

But that doesn’t mean you should use debit cards all the time. In fact, there are some places and times that using a debit card is actually a lousy proposition.

For example, using a debit card online can work against you. If you have a problem with the purchase or your debit card number is stolen, it’s a huge hassle to get the money restored to your account and making your card number safe and secure again. In the online world, credit cards are usually a better bet.

Here are some other instances where debit card usage is a bad idea:

Rental or security deposits. If you have to put money down to rent a car or heavy duty home improvement equipment, try not to use a debit card. Why? Because the business will actually take the money out of your account in the form of a security deposit. You’ll get the cash back when you return the car or equipment. But with a credit card, the money is just “frozen” but not actually charged and you won’t ever notice it’s gone.

Restaurants and bars. There are way too many prying eyes around a dining establishment to trust using your debit card. Apart from the risk of having your card stolen, restaurants are one of those rare places where someone actually walks away with your card and you don’t see them for a few minutes. Much better to use cash when dining out.