The Risks of Prepaid Debit Cards
Many people who cannot get a regular credit card because their credit rating may choose to get a prepaid debit card instead. While there are advantages to using debit cards, there are also some risks that consumers need to be aware. Check out the list below of the risks associated with debit cards and how you can avoid them.
Limited liability protection. Owners of credit cardholders are usually provided with a zero liability protection against fraudulent transactions while some credit cards that offer $50 liability protection.
Meanwhile debit cardholders can enjoy the $50 liability protection on unauthorized charges but only if they are able to report the fraudulent charge within 2 days after the transaction was made. Beyond that time period, a debit cardholder can pay up to $500 or pay the entire bill, whether it was made with or without consent.
More difficult to get refunds. In case there is a problem with your purchase, getting a refund can prove to be more difficult if you used a debit card for payment. This is because your purchase is instantly deducted from your account the moment confirm your order.
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