Never Use Your Debit Card in These 5 Situations -- Here's Why

A few weeks ago, I prepaid for my kid's summer camp. It cost $1,300 total, and I put it on my credit card like usual.

But later that day, I noticed something weird. I got charged twice for the same transaction. Luckily, since I used a credit card, I just disputed it directly inside my bank's mobile app (thanks Chase!). It still took a couple of weeks to fix, but at least my real money wasn't touched.

If I had used a debit card? That extra $1,300 would've come straight out of my checking account. And I would've been stuck with a big hole in my savings until it got resolved.

Debit cards are fine for some stuff. But credit cards usually come with way better fraud protection and quicker resolution methods. Not to mention rewards and other perks!

Here are five situations where using a debit card is a bad idea.

1. Gas stations and convenience stores

The FBI estimates that card skimming costs consumers and banks over $1 billion a year. And gas stations and convenience stores are some of the easiest places for thieves to install card skimmers.

When you swipe your card, a skimmer can steal your numbers and PIN without you knowing. Before you realize, a thief has racked up hundreds or even thousands of dollars in charges that you have to dispute.

If you use a debit card, that money comes straight out of your bank account -- and it can take weeks to get it back.

Credit cards are much safer because fraud doesn't drain your real cash right away. You can dispute the charges without even touching your checking account.

2. When booking a trip

Whenever I book travel, I always use my Chase Sapphire Preferred® Card and book within the Chase Travel portal. Every dollar I spend earns me points -- and those points act like a discount on my trip.

For example, booking $1,000 of travel earns me 5,000 points (worth about $62.50 toward future travel with Chase). That's about a 6% return right there.

Plus, many travel cards typically offer:

• Travel insurance
• Rental car insurance
• Hotel and flight upgrades

Using your debit card forfeits all these rewards and trip protections.

Don't have a great travel card yet? Check out these best travel reward cards for May 2025 and start stacking points today.

3. When shopping online

Sketchy websites are everywhere. And if you plug your debit card into the wrong site, your bank account could get emptied before your products even arrive at your doorstep!

A friend of mine once ordered sneakers from a random online store that looked legit -- until his debit card got hacked. Luckily he caught it early when there was only about $200 in fraud charges. It could have been way worse.

For online shopping, stick to credit cards. It's safer, and you can dispute dodgy charges with way less hassle.

4. When buying big-ticket items

I don't know about you, but every time I buy something expensive with a 1-year warranty, it seems to break down on day 366, one day after the warranty ends.

That's why I always use a credit card when making big purchases. Some cards offer extended warranty and purchase protection benefits.

For example, my Chase Freedom Unlimited® automatically extends the manufacturer's U.S. warranty by an extra year on eligible purchases. If something breaks after the original warranty ends, I still have backup coverage.

Some cards also cover theft or accidental damage within the first few months. And if something shows up broken or missing? It's way easier to dispute the charge and get your money back when you paid with a credit card instead of a debit card.

Want to score these protections (and a sweet welcome offer)? See our top credit cards with the best sign-up bonuses available right now.

5. At bars and restaurants

I hand over my credit card pretty freely at restaurants. But I'd never let someone just walk away with my debit card -- even if I have to punch in a PIN.

There's a lot going on at busy restaurants and bars. And when a server walks away with your card, it's just too easy for someone to skim or clone your info without you even realizing it.

It's just not worth risking my bank balance over a plate of nachos (even if they're the best nachos I've ever had).