It has been reported by Visa Inc that consumers are spending more money on debit cards than with credit cards now. It was reported by Visa that in 2008, consumers spent $206 billion on Visa debit cards. This figure is slightly higher than the $203 billion which has been spent using Visa credit cards by the consumers during the same year. In the past, consumers were spending more on credit card than debit card and the flip flopping of preference is attributed to the recession.

Nowadays consumers have started focusing more on ways to reduce their debt and they are trying to avoid any such things that become the reason of creating more debt for them, and so they have turned towards the use of debit cards to purchase anything they need as the debit cards gives them the ability by which they can avoid more debt accumulation. Now all the debit cards can be used by the consumers at every place where credit cards are accepted, it makes sense that American’s would start making the switch.

Fraud Protections Not Created Equal Between Debit and Credit Cards

In most cases, the fraud protections of credit cards still enjoys superiority over debit cards. In case if your credit card is stolen, then according to law the maximum amount for which you are responsible to pay if there is any unauthorized transactions is $50. On the other hand if your debit card is stolen, as long as it takes you to become aware of it and report it to the debit card company, the more you may be responsible for repaying.

However, the same credit card-style fraud protection coverage as they give to their credit cards is offered by some banks to their debit cards also. It is said by Visa that they have instructed all banks issuing debit cards with the Visa logo on them to deal with any consumer who reports fraudulent use of their card in the identical manner as they would if it was a credit card. What it means is that getting the money back to the consumer in a timely fashion. It is being expected by some consumers that their should be government regulations involving debit card protections, but right now government has not made any regulations regarding this matter.

Due to security concerns credit cards or debit cards are not used by some of the consumers. The facility of ATM only cards is being offered by a number of banks. By these cards it becomes possible for the consumers to withdraw cash from an ATM but as these cards do not contain a Visa or MasterCard logo so therefore they cannot be used like a credit card at a retailer or online in order to make purchases. Using the ATM-only card has a benefit over a debit card and that is with it you can quickly access cash even though if the banks are closed but in case if someone has stolen your ATM card, it will not be possible for them to make any purchases using it. The only way by which they could steal from you is if they have also figured out your PIN (personal identification number) number to make a cash withdrawal from the ATM.

Debit Cards are Familiar in Appearance and Functionality

It has been thought by some specialists that the reason behind the popularity of debit cards is that they look and work almost exactly the same as a credit card do. To complete your transaction you just have to whip it out, slide it through the payment terminal or handover it to the cashier, and that’s it you have completed your transaction. In case of credit card you have to pay the balance back later with interest, while the debit card simply pulls your money from your bank account and due to the reason that it’s your own money you don’t have to pay anything extra in interest fees. Since you can only spend the money that you have in your account, so you don’t have to worry about costly bills every month that you can’t afford to pay.

Just like credit cards, debit cards can also be used to buy things by phone or internet, what you have to do is just to give your card number, expiration date, and sometimes you also have to give the little three digit code on the back of the card.

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