I use my debit card for one activity only–withdrawing cash from an ATM. Notice I didn’t say ATM machine since that redundancy drives me crazy. I also only use what I consider a “trusted” ATM, usually at a bank. I don’t trust those stand-alone ATM’s in gas stations and random locations. I have Ally Bank, and I can use any bank’s ATM and be reimbursed up to $10 per statement in fees automatically.

I learned my lesson never to use my debit card in any other fashion because of the prevalence of fraud. I don’t know how these crooks get the information, but the worst nightmare is having your debit card hacked. When your debit card is hacked, that’s your REAL MONEY going out the door. Yes there will be an investigation, and you should get your money back from the bank, but in the meantime you are out the money.

For online purchases I use PayPal, Apple Pay, or one of my credit cards. Amazon is the only site where I have my credit card saved. If Amazon gets hacked, it’s probably the end of the world anyway. If your credit card gets used for fraud, you aren’t out any money. It’s inconvenient because the card is canceled and you have to wait for a new card. At least the lost money is the credit card company’s problem not yours.

Yes, I use credit cards. I pay them off every month to avoid interest. You should avoid paying to rent money. I also get points for hotels and flights, which accumulate quite nicely over time.

Be careful how you use your debit card. That is one key to the kingdom that you don’t want anyone else to have.