Study: Shoppers are ditching their credit cards

December 16th, 2010 - 7:20 pm ICT by Aishwarya Bhatt  

New York, Dec 16 (THAINDIAN NEWS) Shoppers are currently using their debit cards instead of their credit cards when they go out shopping.

Debit cards’ popularity has soared over the years. In 2009 for example, every one in three non-cash transactions was done with debit cards. The Federal Reserve data revealed that about 8 million Americans stopped using their credit cards and this year, the number is expected to go up even further.

However some experts are warning against the use of debit cards. Experts say that the use of the cards is dangerous and can lead to some serious compromise on your money.

The Director of the Privacy Rights Clearinghouse, Beth Givens said that, “We are very clear on that matter. We do not recommend that people use debit cards. We think they can be dangerous.”

They warn that it is difficult to resolve fraud when a debit card is used because it can take much longer time to detect such a fraud. However with a credit card, the responsibility is on the credit card company to detect the fraud and that can be done much more quickly.

Again, the experts warn that in case of a dispute arising from transaction, canceling payment with a debit card is close to impossible. However that can be done with credit card.

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