Some random differences between Debit Cards and Credit Cards that often slip our minds when choosing which to use.

• Using a credit card is likely to end up costing you interest charges.
• Tight credit encourages managing your money and that leads to spending control through the use of a debit card
• Living within your means and using your own money suggests you’ll be checking balances more regularly and therefore have a better control on expenditure
• Look for Debit Cards with government guaranteed funds protection.
• The majority of Bank issued Debit Cards will actually allow you to overdraw your account – guaranteeing you end up paying fees to them. It’s estimated the banking industry earns $38 billion a year in overdraft fees.

Ways to protect your account
It is interesting to note consumers are relying on debit rather than credit cards. Figures show in America, for 2008, there’s been a 13% increase in debit purchases. For the same period, credit cards showed a three per cent rise.

When it comes to card theft, the typical scenario for credit card theft is for the thieves to charge merchandise, sell that and recognize the money. Debit cards on the other hand, are an instant “cash out” financial instrument. For thieves and debit cards, they’re going to be targeting your PIN number — to extract cold hard cash from your bank account. Skimming is the technique by way of setting up equipment to capture keypad information as well as Mag strip data when you enter these at merchants, petrol stations, restaurants and ATM machines.

Use recognized ATMs.
When you think about it, a thief needs to be able to attach as well as retrieve their skimming devices so they are able to use the gathered data. They’re more likely to install these devices in non-bank settings where there is less traffic and no surveillance equipment.
With this in mind, it’s wise to frequent ATMs in a banking environment.

Accounts should be closely monitored.
The quickest way you’ll probably detect fraudulent activity is by using debit card accounts that can be accessed online rather than waiting for monthly statements to arrive. Bear in mind, the majority of countries require you to report the theft or loss of your card or PIN before they’ll accept their listed liability for the unauthorised withdrawals.
Debit cards (as well as credit cards, for that matter) should always have easy online account management

Be wary of pumping petrol
Some countries have higher skimming incidents at petrol stations. And especially where cards are use right there at the petrol pump. There’s only a few manufacturers of these pumps and obtaining a key to a pump from a disgruntled employee would be a relatively easy task. So again, avoid entering a PIN number and opt for signing for the purchase.

It’s certainly no coincidence that debit cards are becoming the more popular financial instrument of the everyday person.

Visa recently advised their branded debit cards had overtaken their credit card line, in terms of overall dollars spent on purchases. This sort of trend is nothing new either. The Nilson Report indicated that the 2006 figures for debit transactions exceeded credit transactions in 2005 – this is a steady gaining market share ever since.

Consumers are becoming more and more responsible for their spending. The recent furore in the financial markets highlight the fact we all need to both watch our pennies as well as better manage money through cost effective, secure and benefit rewarding financial instruments. Debit cards provide this.

Todays’ savvy consumer would almost certainly carry cash, a debit card as well as a credit card. Different circumstances dictate the better use of one of these. Paying with either cash or a debit card will see you less likely to overspend as you’re living and paying for items within your means – a true debit card will only allow you to spend what is within the debit card.

Look out for debit cards that also provide real time and real world consumer rewards such as immediate Merchant discounts.