3 Places You Should Never Use a Debit Card

Debit cards are a fast and easy way to pay. And they can feel "safer" than credit cards, because they don't allow you to rack up debt.

But in the wrong place, a debit card can expose your checking account to fraud, lock up your cash for days, or leave you scrambling to fix a mess.

Here are three places where using a debit card just isn't worth it -- and what to use instead.

1. Gas stations

Gas pumps are magnets for "skimmers" -- devices that thieves attach to card readers in order to steal your card info.

If a credit card is skimmed, then the thief can only steal from your card issuer. The fraud will likely be detected right away, and you won't be on the hook for any charges.

But if your debit card is skimmed, then the thief can take actual money from your checking account. Even if your bank refunds the fraud, you could be without that money for days.

Gas stations also place temporary holds (sometimes $100 or more) before the transaction settles. With a debit card, that's your own cash tied up.

A better choice

There are no-annual-fee credit cards that pay 3% cash back or more at gas stations. Not only are you better protected from fraud, but you'll get paid back for buying gas.

One of our top choices is the Bank of America® Customized Cash Rewards credit card. Here's why.

• $0 annual fee
• 6% cash back for the first year in the category of your choice (you can pick gas and EV charging stations), on up to $2,500 in spending per quarter, during your first year
• 2% cash back at grocery stores and wholesale clubs for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases
• 3% cash back after the first year from account opening in your choice category
• Earn a $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.

2. Travel bookings

Hotels and rental car companies often place large holds on your card to cover damages or incidentals. If you use a debit card, that money is actually frozen in your checking account. It can take a week (sometimes longer) to get it back.

Debit cards also lack the built-in perks that many travel credit cards have, such as:

• Rewards for booking travel
• Trip cancellation coverage
• Lost baggage reimbursement
• Rental car insurance

A better choice

I recommend a top travel card that rewards you for booking trips. And if you travel often, it may be worth getting a card that offers travel protections.

One great choice is the Chase Sapphire Preferred® Card (see rates and fees). Here's why:

• 5X points on travel purchased through Chase Travel℠
• 3X points on dining, select streaming services, and online groceries
• 2X points on all other travel purchases
• $50 annual credit for hotel stays purchased through Chase Travel
• Generous travel protections
• Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.

The annual fee is a reasonable $95. The hotel credit can cover more than half of that, and the sign-up bonus -- worth at least $750 in Chase Travel℠ value -- can just about cover the annual fee for the first eight years.

3. Bars, restaurants, and anywhere your card "disappears"

Anytime your debit card leaves your hand, you're trusting a stranger with direct access to your bank account. Restaurant skimming and card cloning are rare, but they still happen.

With a credit card, you can lock the account in seconds and dispute charges without putting your own cash on the line.

A better choice

Plenty of credit cards earn 3% cash back or more at restaurants. The Chase Sapphire Preferred® Card is a great card for dining as well as travel. But if you prefer a card with no annual fee, consider another of my favorites: the Chase Freedom Unlimited® (see rates and fees).

This card offers:

• $0 annual fee
• 5% cash back on travel purchased through Chase Travel
• 3% cash back on drugstores, restaurants, takeout, and eligible food delivery
• 1.5% cash back on all other purchases
• Intro Offer: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening

The dining rewards are great, but don't overlook the 1.5% catch-all rate, which makes the Chase Freedom Unlimited® a great "use for everything" card.

Credit cards are usually the better choice -- if you're responsible

Credit cards come with excellent fraud detection and zero fraud liability, and they can earn you rewards for your daily spending. The biggest "danger" is that they allow you to spend more than you can repay, so you can end up deep in high-interest debt.

But as long as you pay your bills in full every month, then there's no reason not to use credit cards for the security and rewards they offer.