4 · SATURDAY, FEBRUARY 25, 2017 THE PERILS OF USING PLASTIC In the debate over using credit cards versus debit cards, it seems there really isn’t one when you ask the professionals. As long as you are able to pay your balance each month and don’t let debt accumulate, credit cards are the much safer option in the event of fraud. “Your debit card is actual money, so once your debit card is compro-mised you are losing real money out of your checking account and it takes a lot longer to recover from that,” said Heather Murray, manager of education at Advantage Credit Counseling Service, located in Pittsburgh’s South Side. “With a credit card, it’s much easier to have the changes reversed. Credit card companies are more ac-customed to dealing with that and it’s an easier process. With debit cards, you’re out actual money and usually for a sustained period of time. “Those charges aren’t reversed overnight, and it could be a matter of weeks before your money is returned, if it’s returned.” According to information pro-vided by the Bureau of Consumer Information attorney general’s of-fice in Pittsburgh, the difference lies in the amount of protection offered consumers by credit card compa-nies versus banks issuing debit cards, and depending on how long it takes to report a missing card a consumer may find no protection at all. As part of the Fair Credit Billing Act, the most consumers are re-sponsible for as long as they report a loss to the credit card company in a timely manner is $50. In the case of a debit card, however, if the consumer doesn’t report a loss within 48 hours, his or her liability can rise to $500, and after 60 days there is no limit. One way in which older adults might become more at risk for fraudulent activity is by not check-ing their statements carefully and often, as can be the case when cognitive impairment becomes an issue. Seniors might also be less aware of the ways to ensure a secure transaction or recognize a legiti-mate business online, said Caitlin Driscoll, of the Better Business Bu-reau of Western Pa., such as watch-ing for URLs with “https” instead of “http,” or seeing the lock icon on the toolbar. “I would say it’s definitely important to educate loved ones who may be against using a credit card of the risks as opposed to us-ing a debit card,” she said. “Also, the importance of checking statements and remembering that an unauthorized charge can occur even if you have the card itself.” Driscoll recommends only using debit cards with merchants that are trustworthy and always using credit cards for online transactions or any transaction in which the card leaves one’s sight, such as at restaurants. Gas stations are another place where credit cards should be used instead of debit cards because of the possibility of skimmers on the card readers that can be used to steal information. Always know who you’re talking to on the phone before releasing any personal information, Driscoll said. “Even if it’s someone who you have a business relationship with, it’s always best to hang up and then initiate that call yourself so you can be certain who you’re dealing with if they’re asking for sensitive finan-cial information,” she said. If a loved one still insists on using a debit card or is reluctant to use credit cards for fear of amassing debt, he or she should avoid link-ing the account to other accounts, particularly savings. “Then both accounts could be drained,” Driscoll said. Credit cards often carry more protection than debit While debit cards can be convenient, credit cards are often the safer option unless you are dealing with a trusted merchant. GETTY IMAGES
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