With companies going into liquidation due to uncertain financial futures at the moment, I recommend you never purchase an item on a Debit Card. As Frank Abagnale portrayed by Leoardo Decaprio in Catch me if you Can film said in this Google Talk
“Every time you use a debitcard, you put your money and your bank account at risk.”
When you use a credit card, you are borrowing the credit card company’s money to pay your bill and your money is earning interest in a bank account, then at the end of the month when the statement is due you pay it off.
If you purchase a service that was never given or an item that was faulty or never showed , and the provider refuses a refund , then you are protected with your credit card with the service called ChargeBack. You can call up your CreditCard company who will take your information about the service and the reason why you are raising it , and put the money back into your account while they speak with the provider to confirm why this was not delivered.
Also when there’s a large data breach , or your card gets cloned ( Especially when you travel abroad ) and a criminal does somehow get your credit card number and charges $1 million on it, you are protected and your credit card company will cancel the card , remove the amount off your statement send a new one within the next couple of days and lodges a fraud investigation to try and regain the money.
With credit cards, law limits your liability if there’s an unauthorized use of your card so you won’t be responsible for any purchases made. If the same thing happens and the criminals get your debit card information, you will lose the money in your bank account and have a difficult and lengthy time recovering it.
** Next tip , Never , ever , ever borrow money on a credit card
Credit card borrowing rates are up there with PayDay Loans in regards to fees and interest rates. Its cheap for you to borrow from your bank.