What are the dangers of using a debit card online?
Emma Miller
Updated on February 17, 2026
Here’s the short version of the dangers of debit:
- Loss Limits. Like credit cards, federal law limits your liability for fraudulent transactions on a debit card to $50.
- Pay Now/Reimburse Later.
- Merchant disputes.
- Phantom charges.
- Overdrafts, overdrafts and more overdrafts.
- Skimming.
- More on MoneyWatch:
What are the dangers of debit and credit cards?
Fraud protection With a credit card, your liability for fraudulent charges typically maxes out around $50. With a debit card, you may be responsible for up to $500 of charges you didn’t make. Plus, some banks will hold you 100 percent liable if your debit card is used fraudulently for pin-based transactions.
Why is it bad to have a debit card?
Building credit If you don’t have a credit history yet or you are trying to rebuild your credit score, a debit card won’t help. On the flip side, if you frequently forget to make credit card payments, sticking with a debit card may prevent you from doing further damage to an already weak credit report.
What are the cons of using a credit card online?
Some credit cards come with insurance which could cover certain items purchased on that card. What are the cons? Probably the most significant con for using a credit or debit card online is that there has been an increase in online credit and debit card fraud as online payment activity increases.
Is it bad to use a credit card to shop online?
Using credit cards for online shopping can be dangerous if you are an impulsive spender. When you shop with a credit card, you are borrowing money that you have to pay back later, so if you shop too much you could accumulate a large amount of debt.
What are the risks of having a credit card?
Below we’ve listed five risks of credit cards, as well as tips on how to manage them. Getting into credit card debt. Missing your credit card payments. Carrying a balance and incurring heavy interest charges. Applying for too many new credit cards at once. Using too much of your credit limit.
