An Indepth Look At Credit Cards Vs Debit Cards For Road Trips
Generally, the typical American household will have four debit or credit cards. The use of these cards and their overall efficiency and effectiveness becomes more pronounced if you are constantly on the road in your travel trailer. This is usually the case since when traveling; most people don’t like to travel with cash. When looking for a card, it is important to pick the card that’s the best fit for your specific needs, the overall convenience, fraud protection levels, interest levels as well as rewards or offers that the card may offer the user from time to time. To fully appreciate the pros and cons of credit cards vs debit cards for road trips, it is important to first understand what both forms of payment mean.
A debit card is different from a credit card in that the funds are deducted from the account immediately, whereas a credit card uses what is termed as a line of credit that is repaid at a later time. A debit card is solely issued by a bank to its customers while a credit card doesn’t necessarily have to be issued by a bank. Most debit cards have two main features which can make them more desirable when traveling; the ability to buy items at stores that have automated credit or debit card machines as well as the ability to withdraw cash from ATMs that are associated with the bank account.
If you are using your debit card for an online purchase, you will most likely not be required to enter your PIN but will be required to enter the four or three digit security for the card in question and the funds will be deducted from your account immediately. However, if you are using a credit card, you will most likely be required to enter your PIN and the amount of money used will not be deducted from your account immediately.
It is also important to note that when it comes to security, this does vary from the card that you opt to use. With credit cards, you are only liable for up to $50 of any fraudulent use. However, for a stolen or lost debit card, the financial loss is limited to $50 only if you report the loss or theft of your PIN code or card within 2 days after you learn about it. For both credit and debit cards, if you fail to report any unauthorized charges on the card within sixty (60) days of the date of the statement listing were made, then you could be held liable for any unauthorized withdrawals afterwards
With a debit card, in the event that there is a dispute, the amount of money will already have been debited from your account, forcing you to wait for a settlement of the matter at hand before the said funds can be returned. If you are traveling and short of cash, this can really affect your plans if your money has been wrongfully debited and you are then forced to wait for an inordinate amount of time. On the other hand, if you are using a credit card, you won’t be out of any money as the unauthorized charges are being investigated.
In the event of unauthorized charges on either your debit or credit card, it is always recommended that you contact the vendor or business that made the charge. You should request to be given a copy of the signed receipt as well as any other information they can provide you with about that particular purchase and let them know that you will be reporting the anomaly to the local law enforcement agency. You should ensure that you have kept a file of all the calls, conversations and reports you have had with various law enforcement, banks and businesses involved in one way or the other with the misdemeanor.
Another area of concern is the rewards. Even though both cards tend to have some rewards system or perks, credit cards tend to have more attractive rewards such as travel insurance as well as extended warranty of purchased items such as refunds or replacements on defective goods ordered online.
Lastly, if you are keen on enhancing your credit rating then a debit card won’t do you much good since they don’t enhance your overall credit rating since you are using your own money. Due to this fact, debit card transactions don’t get reported to credit agencies or companies.
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