| There are three types of cards available in the market | | | | Credit cards are issued by banks or card companies |
| - debit cards, ATM cards and credit cards. There are | | | | extending credit to the cardholders. It is a kind of loan |
| risks associated with each of these cards and you | | | | which must be paid back with interest and penalties, if |
| should be aware of those. | | | | you do not pay your balance within a fixed time. This |
| ATM cards offer limited convenience of withdrawing | | | | card is not attached to your checking account. |
| cash from the ATM machines. These cards cannot be | | | | There are a lot of on-line shopping opportunities where |
| used for making any purchases, in stores or on-line. | | | | identification of the credit card holder is not required. |
| There are limited risks associated with this type of | | | | Thieves use stolen credit cards to towards these |
| cards. If your card is stolen, it can be misused by the | | | | opportunities. |
| thieves on ATM machines. While you are using your | | | | The risks associated with debit cards are more and |
| card, a thief may be waiting behind you to watch your | | | | then with the credit cards. The money is immediately |
| actions. Then he will try to steal the card from you. If | | | | taken from your checking account when you use your |
| he is successful, he can empty your bank balance | | | | debit card. The banks will expect a very quick |
| within no time. If you take care of your wallet properly, | | | | intimation for any misuse of your debit card because |
| the risks with these cards are much less. | | | | once the money is taken out from your checking |
| Debit cards provide better facilities than ATM cards. | | | | account; it becomes very difficult for the banks to |
| With these cards you can shop on-line or in stores. It is | | | | recover it. To the contrary, the liability with the |
| not a credit card, but it offers similar services. The only | | | | fraudulent use of credit cards is limited to $50 if you |
| difference is - when you swipe your debit card, money | | | | notify your card company promptly. |
| is immediately withdrawn from your checking account. | | | | So should you stop using your cards altogether? Well |
| This card poses maximum problems when used | | | | that is not possible in real life. What you can do is take |
| fraudulently by thieves. When you swipe this card in | | | | some precautions. You can request your bank to issue |
| the machines of retailers, your information is | | | | you an ATM only card which you can use only for |
| automatically stored inside that machine. With the help | | | | cash withdrawals. You should stop using debit cards |
| of this information, thieves can easily access your | | | | altogether. Regarding credit cards, you should regularly |
| account. When they make on-line purchases, the | | | | check on-line the transactions so that you can locate |
| money directly goes from your checking account. This | | | | any fraud immediately. |
| is risky as compared to a credit card. | | | | |