Brits urged to stop using debit cards for 1 purchase | Personal Finance | Finance

Experts have revealed which purchases you should avoid making with your debit card, with an alternative method of payment proving safer and more beneficial. Most Brits have debit cards, which allow them to purchase items using the money in their current account. You can also get a debit card for services like Monzo and Revolut, both of which people use to transfer and manage their money.

While debit cards are incredibly handy for millions of Brits, there is another form of payment that proves more beneficial (and sometimes safer) for certain purposes. The experts at Money To The Masses have shared the benefits of credit cards versus debit cards, explaining why the latter is often better than the former for certain types of purchases. According to the expert, you should avoid using your debit card to pay for holidays. 

When booking a holiday, which is typically done well in advance, many people prefer to spread the cost out, which can be done using a credit card. However, this isn’t the only benefit. 

If an airline goes bankrupt or travel plans have to be rearranged, people can lose thousands of pounds as a result, especially if they have paid upfront using their debit card. However, there are certain protections in place when you use your credit card. 

If the holiday provider goes out of business and you have paid with your credit card, then you would be protected by Section 75 of the Consumer Credit Act. This applies if the purchase was between £100 and £30,000.

This law makes your credit card provider equally liable if something goes wrong with the supplier, meaning you can claim if the supplier fails to remedy the problem. 

While this protects payments made via credit card, it does not cover payments made with a debit card. So when it comes to big purchases like a holiday, it’s best to use a credit card when you can. 

Under this section of the act, you are covered if the goods you receive are faulty, if the supplier of the goods or services goes bust, if goods do not match their description or if services aren’t delivered.