Debit vs. Credit Card Liability

Most credit cards offer fraud liability, which means you will not be out any money, or at least not more than fifty dollars if you are a victim of fraud or theft. Of course, you need to be current on your payments and are required to report any loss or theft as soon as you discover it.

Debit card users need to notify the bank or credit union within two business days of discovering the loss or theft of the card. The bank or credit union cannot hold you responsible for more than the amount of any unauthorized transactions or $50, whichever is less. Also for debit cards, if you wait more than two days, but fewer than 60 days after receiving your statement, you can be liable for up to $500 in charges. If you wait more than 60 days to report debit card fraud/theft, you could be liable for all the money taken, plus funds in a savings or other account linked to your debit account.


A recent survey showed 66 percent of Americans say they are more likely to trust debit cards than credit cards. Those folks should think a bit more about what it could cost them to use a debit card vs. a credit card.