Is your credit card safer?

The common opinion about credit cards is that they are safer than a debit card.   But a debit card is just as safe when used in the credit function (not using the PIN number), as stated on Visa’s own website:  http://usa.visa.com/personal/using_visa/personal_finance/debit.html

Benefits of a Visa Debit card:

* Convenience – The Visa Debit card frees cardholders from having to carry bulky checkbooks, multiple identification cards and large amounts of cash.
* Security – Visa offers debit cardholders Zero Liability in cases of card fraud, theft or unauthorized card purchases for signature-based transactions, provided cardholders promptly notify their issuer of such fraud, theft, or unauthorized purchase.

I have been living without a credit card for a number of years.  There are so many other benefits that Visa does not post on their site about debit cards:

• The lowest interest rate in town!  The interest rate on my debit card is the lowest you can get – ZERO PERCENT!
• I spend less: Dunn and Bradstreet did a study reporting that on average you will spend 12-18% more when making a purchase with a credit card as opposed to cash.  While a debit card is still a swipe instead of spending cash I find that I make different, smarter choices when making purchases.
• No annual fee or account fees.
• No “gotcha fees”.  There are no late payment fees, over the limit fees (although there would be an overdraft on a debit card, see next point).
• No pay-off or pre-pay fees for paying the balance in full (keep an eye out for many credit card companies to charge a fee for this soon).
• More attention to spending: I’m spending my own money and I can’t spend what I don’t have in the account.  This creates a healthy habit of paying attention to my accounts, upcoming expenses, and my credit bureau – which I should be doing ANYWAY.
• No difference with retailers: If you run your debit card through the machine like a credit card then the transaction is handled exactly like a credit card – same processes and protections apply.

If my debit card is stolen:

…then I would have to change my account, but my bank will handle that for me.  Otherwise they will not get my business and I will find one that does – and right now BANKS REALLY WANT MY BUSINESS.  Credit card companies want my business, but only to the extent that I pay them interest or fees.

So which is safer?  Given the benefits of paying attention to my spending and financial accounts, I vote for the debit card over the possibility of over-charging, over-spending, and miss-management of the Credit Card.