3 Places You Should Never Use a Debit Card
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Swiping your debit card feels harmless.
But using it in the wrong places can open you up to fraud, hold your cash hostage for days, and leave you fighting to get your money back.
Here are three spots where it's smarter to use a credit card instead.
1. Gas stations
Gas pumps are prime territory for tiny devices thieves attach to steal card info called skimmers. And because debit cards pull directly from your checking account, a single skim can drain real money fast.
Even when the station is legit, pumps can place a temporary hold on your account (sometimes $100 or more) until the transaction settles. That can freeze money you might need for bills or groceries.
A credit card gives you an extra layer of fraud protection and prevents your checking account balance from getting tied up. And a credit card that earns cash back or points for gas station and grocery store purchases will make sure you're rewarded for your weekly fill-ups.
2. Hotels and car rentals
Both hotels and rental car companies place large "holds" on your card to cover potential damages or incidental charges. When you use a debit card, that's real cash that might be locked up for a week or longer.
With a credit card, the hold just limits your available credit, not your spending money. You'll also have more leverage if you need to dispute any surprise fees after checkout.
3. Online shopping
When your debit card number gets stolen online, thieves have direct access to your checking account. Even if your bank reverses the charges, you might wait days before the funds are returned.
Credit cards, on the other hand, act as a buffer. Fraudulent charges never touch your real money, and disputes are typically resolved faster.
If you're shopping online, use a credit card or a secure payment service like PayPal or Apple Pay.
Keep your debit card for the basics
Debit cards are great for withdrawing cash, checking balances, or using at trusted stores. But for gas, travel, and online purchases, a credit card gives you better protection, fewer headaches, and, if you pick the right one, valuable rewards.
If you don't already have one, see some of the best credit cards for everyday purchases and protect your money while earning cash back on the things you buy anyway.
Our Research Expert
Jake FitzGerald is a full-time Editorial Strategist and Personal Finance Writer at Motley Fool Money, leading content production and distribution while also writing about credit cards, bank accounts, and other financial products. He has more than a decade of experience editing and shaping financial content to give readers clear, trustworthy money advice. His work focuses on delivering practical insights that empower people to make smarter financial decisions. Off the clock, he’s a fan of college football tailgates and still loyal to his favorite putter -- despite what his short game suggests.