Blog Entries by Money IQ

You have payment choices when making purchases online, but what card – credit or debit – do experts recommend?

Credit Cards

With credit cards, you escape some of the financial headaches caused by fraudulent purchases. When disputing credit purchases, the card company will work to resolve the dispute and you won’t be out any money during that process.

Debit Cards

With debit cards, the money comes directly from your account and you’ll usually be out that amount until the dispute is resolved.

Go with credit. In addition to after-the-fact protections, credit card companies also have built-in safeguards that can recognize unusual activity on your card and block suspected fraudulent purchases.

Protect Yourself Against Card Misuse

Use one credit card online. If you have multiple credit cards, use only one for online purchases. If you need to cancel the card due to fraudulent use, you’ll still have another card to use.

Get a credit card with a low spending limit. If your card is compromised, it can protect you from someone else running up big purchases.

Check in regularly. Experts also say you should check your account online regularly to look for suspicious transactions and to report them right away. You also should set up text or email alerts to inform you of things such as purchases that exceed certain amounts.

Only shop on trusted, secure sites. Look for ‘https’ at the start of the web address and the small lock symbol in the address bar.

Save your receipts. Either save the email copy or a printed version of your receipts and compare them to the charges that show up on your statement. Let your card provider know if there are any irregularities.

To take full advantage of the protections and features that come with your credit card, be sure to read the fine print on your card’s agreement, and be sure to shop safely and report any problems immediately.

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