Key Post Is paying with a credit card safer than paying with a debit card?

Brendan Burgess

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This comes up from time to time, where people say they pay with a credit card because it's safer.

(This first post will be a summary. I have copied in posts from other threads to highlight some of the issues - Brendan )

My understanding is that there is no difference in practice, in Ireland at least.

If you apply for a chargeback
If you buy a €1,000 suite of furniture and the company goes bust, the bank will refund you whether it is a credit card or a debit card.

If someone fraudulently uses your card details
Again, the bank will refund you whether it's a debit card or a credit card.

With a debit card, the fraudster could clear your bank account, and although you will get the money back, it could take some time leaving you with no money.

There is no provision in Irish law for this, it is a matter of practice by the debit and credit card companies
In the UK, Credit Card companies are jointly liable with the retailer, but that does not apply in Ireland.
 
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Your chargeback was under the Visa scheme rules. Visa don't care if it's a debit card or a credit card. The same rules apply.

In the UK there is extra protection for credit cards (section 75) but there is no such differentiation here.
 
For travel and holiday bookings you have the additional benefit of chargeback.
 
Credit card charge back is faster and more effective; which is why I always use CC for holiday/flight bookings.
 
ATC110 said:
This must be a private scheme operated by an individual credit card provider as there is no statutory purchase protection in ROI, unlike the UK's exemplary Section 75 cover
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You are correct, i had thought there was better protection for purchases on a credit card, but there is not, the same chargeback and dispute resolution, is in place for both debit & credit cards.
 
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You need to be careful using debit cards on the internet. If you card details are comprised and there are fraud transactions on your account you are straight away down money. There can be some time delay before its refunded to you. If you use a credit card then when you have fraudulent transactions the transactions will be marked as fraudulent and you won't be liable for them. At the very least you have time to sort it out.

A virtual card (like Revolut provide) or an account with limited funds is another option.
 
Brendan Burgess said:
If someone fraudulently uses your card details
Again, the bank will refund you whether it's a debit card or a credit card.
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A downside of debit cards in this scenario is that the fraudster might clear out your current account, potentially leaving you without money to pay for food, mortgage payments etc. At least with a credit card you have some time to let the bank confirm it was fraudulent behaviour and get the balance sorted out before it impacts you.
 
So does paying with a prepaid card like Revolut give you a lot of comfort?

I keep around €200 in my Revolut card. If it is ever hacked, I will lose at most €200.

Come to think of it, it is automatically topped up, so I suppose they could get more.

Revolut messages me every time I use it, so it's probably safer than my AIB debit card anyway.

I think that when I use my AIB debit card online, they send me a message telling me that I have used it.

Brendan
 
If your phone and your wallet both go in the same event it’s harder to stop your auto top up.

I pretty much keep the CC just because it’s so much more secure if something goes wrong. I’ve had the discussion with the bank when a DC has been used and the CC company when that’s been used and always the CC is easier to resolve with way less stress
 
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Hi Big 40

There should be no difference between resolving a problem with a Credit Card and a Debit Card. They have the same rules.

From what you have said, the difference seems to be between the "bank" who issued the debit card and "CC Company" which issued the Credit Card.

Brendan
 
TheBig40 said:
If your phone and your wallet both go in the same event it’s harder to stop your auto top up.
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Interesting point. Let's tease it out.

Someone robs by Revolut card and my phone.

The use my Revolut card but I am not aware of it as my phone is gone.

But they can only tap it for amounts less than €50. After that, they will be asked for the pin.

And after tapping it a few times, they will be asked for a pin.

So it's pretty safe.

If they buy something online for €400, it won't go through as there won't be enough money in it.

Brendan
 
That’s not my experience. With the CC the balance was restored and the CC fraud team involved the guards etc it. My ability to use my CC was restored in a few hours. With the debit card it was put to me to prove I had not made the payment and it was hard to get the funds returned for anything up to the point I reported the suspicious behaviour.
Now I just use the CC or revolut for everything and clear the balance every month.
 
TheBig40 said:
With the CC the balance was restored and the CC fraud team involved the guards etc it. My ability to use my CC was restored in a few hours. With the debit card it was put to me to prove I had not made the payment
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Sorry, I had misunderstood your earlier post.

Can you confirm that both the credit card and debit card are with the same bank.

So the difference is down to the type of card, and not the different bank.

Brendan
 
Brendan Burgess said:
Sorry, I had misunderstood your earlier post.

Can you confirm that both the credit card and debit card are with the same bank.

So the difference is down to the type of card, and not the different bank.

Brendan
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Yes at the time it was BOI CC and BOI DC on my current account. Night and day experience. I researched it more after the fact but your protection with CC is much greater.
 
I'd agree with there being a difference.
A few years ago i had a fraudulent debit from my CC and it was refunded straight away.
Only yesterday, my wife showed me a text purportedly from ulster bank stating there was faudulent activity and to expect a further text. She then got a text from a +44 number (not unsurprising I guess being UB) asking if the listed transactions were genuine. We would have ignored as a scam except that it genuinely displayed the last 3 transactions. One was a debit of 0.69 for a 'Golden Moon Chinese' which should clearly not have been there.
When we rang up UB, it was very unusual in that UB had 'caught' the fraud on her card, but there was actually another one that got through on my card.
Relating to this thread, it was only when i specifically asked about a refund (however small) that they said they would then initiate fraud proceedings.
To add insult to injury, we are both now without access to the joint acct until 2 new cards arrive, plus i cannot even do an online transfer to Revolut as that is an international transfer and its been disabled until i receive the physical card!
Just as well i have a CC as a backup to the backup...
 
Hi fme

I am trying to follow your story.

1) You had a fraud on your credit card. Your credit card was cancelled and you were refunded immediately. So you weren't really inconvenienced because you don't rely on your credit card as much as your debit card.

2) You had a fraud on your debit card. It was cancelled immediately, which is much more inconvenient than having your credit card cancelled.

So you would say that the lessons are:
1) Pay by credit card online wherever possible as if it's compromised, it is less inconvenient.
2) Pay by Revolut card online as it won't matter if it's compromised. (Except that I would guess that it's a lot more hassle getting bad transactions reversed on Revolut)
3) Don't use your debit card except in person or where you are getting a lower price for paying with a debit card.

Brendan
 
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