New debit card protections still not enough.

As we have said many times, credit cards are a much better deal for you than debt cards IF you pay them off every month. Credit cards offer far more protection that debit cards if something goes wrong.

If you have a problem with a vendor, every credit card bill has a form on it that you can use to have your credit card company straighten out the problem for you. Not so with debit cards.

If someone steals your card or uses it without authorization, your loss is limited by federal law to $50. Debit card laws give you a $50 limit for unauthorized use only when you notify them within two days. After that, the limit jumps to $500, and in 60 days even that protection is removed.

Banks want you to use debit cards because they make more money, so some are now offering “zero-liability” protections, but there is a catch. Usually these protections apply only when you sign for your charges (because the banks get more fees when you sign) instead of using your PIN, but th merchants want you to use your PIN. That offers no extra protection.

All in all, credit cards are still better.

For more information on credit cards, click here.

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