Five Debit Card Traps

1)  Disputing bogus charges on debit is much more difficult. US laws clearly protect you when you get ripped off with borrowed money (Credit Billing Act and Truth-in-Lending don't address debit cards as cash). When your cash gets ripped off (i.e. a debit transaction) you're at the mercy of the card agreement / merchant)

2)  Debit is off the credit bureau grid. Valuable FICO points are lost if you stay off this grid. Your credit report score can be inflated with small payments made on time. Bureaus make no distinction between $25 or 25,000 paid on time. A debit card doesn't count nearly as much in recording on time payments with the bureaus. Keep using debit especially if you have existing loans or credit cards you're trying to ratchet down.

3)  Select "credit" vs 'debit' at checkout when using your debit card. It's “authorization hold” vs. instant money zap on your debit card.

4)  Expiration dates are dropped from processing to ease recurring payments. Think thrice before using a debit to pay for monthly anything. A credit dispute is possible and easy. A debit dispute is very difficult.

5)  track purchases on paper with debit transaction recorder

bonus)  dispute in writing and online. Phone support is easy but you reserve no rights. Cut and paste and letter and post the same thing online similar to Las Vegas coffee bean dispute

bonus #2)  Turn your credit card into a debit. Normally, a debit card draws strait from a checking account. Now you get a credit card that does auto pay from your checking account. Set an alert for when you spend $400 that goes to your cell phone. Request a low credit line (below $2000).

Debit is great if you already owe and are minimizing interest and debt. Just know how the rules work and maximize what's best for you.