One man warns that using your debit card every time you fill up at the gas pump could compromise your bank account information.
In a video with over 2.6 million views, financial expert Steve Saxton (@stevesaxton_) tells viewers to “stop using your debit card for transactions.”
“In the event that someone clones your debit card, steals your card, puts a skimmer on a gas station pump, your bank account is at risk,” he warns. According to Webroot, a data protection company, card skimmers found on gas pumps and ATMs are one of the most common forms of fraud.
In many cases, a PIN protects debit cards. But if a thief can access your account, you may incur overdraft fees or unauthorized transactions.
He suggested, “Only use your credit card for all your charges. Lunch, groceries, everything you buy, put it onto a credit card.”
Is credit card use actually linked to higher spending?
Saxton acknowledges a common belief that credit cards are linked to higher spending and debt. For instance, many cards have high interest rates if you don’t pay off a monthly statement balance.
Nearly half of Americans don’t know the APR—the interest rate—of their credit card, according to CBS News. This statistic could spatially explain why some people feel anxious about swiping credit instead of debit.
“People believe if they put something on a credit card, they’re going to be charged interest. It’s just not true,” he explains. “Just because your debit card says Visa, doesn’t mean it has the same protections [as a credit card]. It’s tied directly to your bank account.” The Daily Dot emailed Visa for further information about its debit card protections.
For those who are anxious about accruing credit card debt, Saxton recommends paying off the balance every day or weekly.
“Certainly pay it off before your payment is due. You’re never going to be charged any interest,” he says.
Many viewers agree with his suggestion, sharing they don’t carry credit card debt.
“I put everything on my credit card and I’ve haven’t paid interest in years. You do have to be financially disciplined to do this though,” one writes.
“Yes! Using your CC does not mean spend more. Use it and pay it off Twice a month and collect your points or cash back from your CC. Watch your credit score go up and up,” another says.
“I do this every month. I use credit card for everything then pay it off at the end of the month. No interest paid ever,” a third shares.
Why are credit cards safer than debit cards?
Saxton points to several advantages that credit cards have over debit cards.
“You get fraud protection. You get airline bonus points. You get cashback. It’s not tied to your bank account,” he lists. “There are so many reasons to put everything onto a credit card.”
But what’s a debit card good for then? Saxton recommends only using it to “get cash from the ATM.”
“I’ve been looking at credit for 25 years. This is one of the number one things where people get hurt, their bank accounts drained because they’re using their debit card,” he explains.
Can you get your money back from a stolen debit card?
If someone steals your debit card, your stolen funds aren’t gone forever. It just may take longer to remediate the situation.
“You can file with your bank. It usually takes 48 hours to five business days to get that money back into your account,” he says. However, U.S. News reports that debit card account holders may be responsible for $50 to the full amount of fraudulent purchases depending on card protections.
The advantage of a credit card is that your bank account is safe if the bank flags an authorized charge. So, you won’t have to worry about missing bill due dates while the bank investigates the missing funds.
In the comments, several viewers say this is why they’ve swapped their debit for credit.
“I started using credit cards only and I’m getting SO MUCH cash back! And it’s safer! Best decision ever,” one writes.
“Our parents made us afraid of credit cards. Once you change that mindset and you are financially literate, you understand how to use credit cards,” another says.
@stevesaxton_ It’s simple. Stop using a debit card.
♬ original sound – SteveSaxton
The Daily Dot reached out to Steve Saxton via Instagram and TikTok direct message.
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