Debit Card vs Credit Card: Which Is More Secure Online?

Updated on December 11, 2024.

Credit cards are more secure than debit cards for online use because they offer better fraud protection and make it easier to receive a refund if you fall victim to fraud. According to the Federal Trade Commission (FTC), the most common type of identity theft so far in 2024 has been credit card fraud. Credit card fraud can occur if your payment information is revealed through a data breach or cyber attack, but credit cards provide stronger protection than debit cards when used online.

Continue reading to learn the differences between debit cards and credit cards, why you should use a credit card for online purchases and how to keep your payment information safe online.

Debit card vs credit card: What’s the difference?

Debit cards withdraw money directly from your checking account to make a purchase, whereas credit cards borrow money from a credit card issuer, which you pay back later. Since debit cards rely fully on the funds in your bank account, they are riskier to use online since any transaction links directly to your bank account. Using your debit card online allows cybercriminals to access your banking data more easily if they intercept your transaction, whereas using a credit card does not reveal your bank account information or put your saved money at risk.

What is debit card fraud?

Debit card fraud happens when someone uses your debit card without your knowledge or consent. Your debit card can be compromised if you lose your wallet containing the card or if it is stolen. Once someone steals your debit card information, they may use it to make purchases in person or online, relying on the money in your bank account. Someone with access to your debit card could also withdraw money from an ATM, taking the funds you have saved.

How debit card fraud is handled

If your debit card is stolen and fraud is committed, the money stolen from your bank account is unlikely to be returned. Even if you report your lost debit card to your financial institution and they investigate the unauthorized activity, it is rare to recover all the stolen funds. However, you have a better chance of recovering any lost funds if you report unauthorized charges to your bank as soon as possible.

What is credit card fraud?

Credit card fraud occurs when someone uses your credit card without your knowledge or consent. Although some credit card fraud involves cybercriminals stealing your physical card, they can also use your credit card without having it by tricking you into sharing your card number in phishing scams. Once someone gains access to your credit card, they can make large purchases that negatively affect your credit or create debt, which can have long-lasting impacts. Depending on how much information they steal, a cybercriminal who commits credit card fraud can successfully steal your identity and impersonate you to commit crimes.

How credit card fraud is handled

If you become a victim of credit card fraud, you need to contact your credit card issuer immediately to report unauthorized activity. Since your credit card is not linked directly to your bank account, your financial institution is typically responsible for repaying any fraudulent charges. They will investigate fraudulent charges, most likely cancel your current credit card and send you a new one. It is crucial to report credit card fraud and any unauthorized purchases as soon as possible to maintain zero liability for the activity.

Why you should use a credit card over a debit card online

You should use a credit card instead of a debit card for online purchases because credit cards offer better protection against fraud and keep your personal money safe by using borrowed money from your financial institution. Using a credit card for online purchases helps protect the money in your bank account and savings from being stolen by cybercriminals.

	Debit Cards	Credit Cards
Federal law that protects consumers from unfair billing	Electronic Fund Transfer Act (EFTA)	Fair Credit Billing Act (FCBA)
If lost card reported before any purchases were made on it	Zero liability	Zero liability
If lost card reported and unauthorized purchases were already made on it	If reported within two business days, could be charged $50 for unauthorized purchases. Afterward, could be charged $500, or the entire amount of the unauthorized purchases.	If reported within 60 days of receiving the account statement with the transaction, zero liability. Afterward, could be charged $50 for the unauthorized purchases.
If someone uses your card but doesn’t have the physical card	If the loss is reported within 60 days of receiving the account statement with the transaction, zero liability. Afterward, liable for the charges.	Zero liability

What if I don’t have a credit card?

If you don’t have a credit card, here are some steps you can take to protect your finances and identity:

• Keep a low balance in your checking account. If all your earned money is in your checking account and someone steals your debit card information, you could suffer great financial loss.
• Disable overdraft protection, which will cause your bank to decline a transaction if you don’t have sufficient funds in your account. If a cybercriminal steals your debit card information and tries to withdraw money you don’t have, your bank will not charge you overdraft fees.
• Consider using other methods of payment, such as Apple Pay or Google Pay. These methods increase security because your debit card number is not shared during transactions, maintaining your privacy.

How to keep your debit and credit card information safe online

You can protect your debit and credit card information while shopping online by never storing your card information on websites or apps, being cautious of phishing scams, avoiding transactions on public WiFi and enabling transaction alerts.

Never store your card information on websites and apps

Protect your card information by not storing it on websites or apps where you have accounts. Never store your card information online because a company with which you have an online account may suffer a data breach, exposing your login credentials for anyone to log in to your account. If your payment information is stored within your online account and an unauthorized user gains access, they could use your card information to make purchases without your permission.

Instead of storing your card information on websites or apps, secure it by keeping it in a password manager like Keeper^®. With Keeper, you can store your card information in an encrypted vault, and your card details will autofill on websites when you shop online using the browser extension. Storing your card information in a secure password manager is safer than storing it on websites or apps because online accounts are at a higher risk of being compromised.

Be cautious of phishing scams

Imagine receiving an email from your bank warning you of suspicious activity. To verify that a transaction was legitimate, the email asks you to click a link and enter your bank account details. Once you click the link, you are redirected to a website that appears to be your bank, where you enter your private information. Unfortunately, if you’ve done this, you have likely fallen for a phishing scam and your private information has likely been sent directly to a cybercriminal. These phishing scams are designed to trick you into sharing private information, such as your bank account number or credit card details, so cybercriminals can steal your money or identity.

It’s important to know the common indicators of a phishing attempt to avoid becoming a victim of fraud or identity theft. These signs include the use of urgent or threatening language, offers that seem too good to be true, spelling or grammatical errors, unsolicited links and requests for personal information. In phishing scams, cybercriminals often create emails impersonating trusted companies, including your bank or credit card issuer, to make you believe you are entering your information in a legitimate website. However, cybercriminals design spoofed websites that are almost identical to legitimate company websites. These websites take the information you enter and send it to the cybercriminals who created them, allowing your payment information to be used for fraud and identity theft.

Avoid conducting transactions over public WiFi

You should avoid conducting transactions over public WiFi because cybercriminals can intercept public networks and steal your data in a Man-in-the-Middle (MITM) attack. If a cybercriminal successfully manipulates the network, they can see any data transmitted between you and your recipient. This means any transaction you make on public WiFi can be intercepted, revealing your payment information. To avoid this, you should connect to a Virtual Private Network (VPN) to encrypt your data and keep your information private.

Enable transaction alerts

Transaction alerts notify you when a transaction is made on your debit or credit cards. You should enable these alerts because, if an unauthorized transaction occurs, you will know about the fraudulent activity and can act quickly. On your credit card issuer’s app, you can log in to your account and enable these notifications within the settings. Similarly, you can enable alerts on your bank’s app to be notified when transactions, transfers or deposits are made.

Protect your debit and credit card information with Keeper

Even though it is safer for you to use your credit card rather than your debit card online, you should protect both types of payment information by storing them in a secure password manager like Keeper. Storing your card information in Keeper Password Manager ensures your information is encrypted and easily accessible for you to autofill while online shopping.

Start your free 30-day trial of Keeper Password Manager today to better protect your financial information from being used by cybercriminals to commit fraud or identity theft.