MINNEAPOLIS (WCCO) — We know you’re looking for the easiest and smartest ways to shop as we get closer to Christmas. This week we are getting to the bottom of some of your holiday shopping questions.
For Tuesday, we decided to take a look at that card you’re swiping with many of your purchases. Is it better to press “debit” or “credit”?READ MORE: One World Surgery: Twin Cities Surgeon-And-Nurse Duo Create World-Class Medical Center In Honduras
As it turns out, swiping credit will protect you more than the debit option. The threat comes from thieves who can get your account information after you type in your PIN.
You have greater protection under federal law when you use a credit card, especially if it gets stolen. Your maximum liability is $50 on a credit card, but for a debit card you could have unlimited losses. Once your money is gone, it’s gone.
It’s also safer to make a debit card purchase using the “credit” option if the card has a Visa or MasterCard logo on it. That’s because the credit card company’s zero-liability protection policy applies to this transaction.READ MORE: Many Restaurant Job Applicants Aren't Showing Up For Interviews
Also, using a credit card can be even more useful for online purchases because if account info is stolen and not the physical card, you have no liability under federal law.
WCCO asked a New York-based credit card analyst from Bankrate.com about this and she says the best policy for holiday shopping and beyond is to leave the debit card at home.
“I don’t carry debit cards at all rather credit issuer deals with losses and not me,” Janna Herron said.MORE NEWS: Memphis Man Killed By Semi In St. Paul While Walking On Highway 52
So what if you don’t want to use a credit card? Herron recommends withdrawing cash from the ATM before you head out to shop. That will also ensure you don’t spend more than your budget.