CUNA advises on 10 places not to use a debit card

MADISON, Wis. (3/18/10)--There are 10 situations where consumers should keep their debit card in their wallet, according to CreditCards.com. Susan Tiffany, the Credit Union National Association's director of consumer periodicals, provides some of the advice.

"You don't use a debit card online," Tiffany told the publication. Not using debit cards online was No. 1 on the list. Since the debit card links directly to a checking account, "you have potential vulnerability there," Tiffany said. The Fox Business Network (March 17) also picked up the CreditCards.com article (advice.

Tiffany also gave advice on using debit cards in restaurants. Most lists warn against letting a credit or debit card out of sight at a restaurant, but restaurants are one of the few places where the consumer must let the card out of sight to use it. Avoiding such situations isn't workable. "The conventional advice of 'don't let the card out of your sight'--that's just not practical," Tiffany said.

As for using the card at gas stations and hotels, Tiffany said it depends on the individual business. Some gas stations and hotels will place holds to cover customers who may leave without settling the entire bill.

That means that even though the consumer bought only $10 in gas, the hotel can have a temporary banking hold for $50 to $100, Tiffany said. The practice isn't as noticeable if paying with a credit card but can be problematic for debit card users with just enough funds in the account to cover the purchase.

Don't use debit cards for:

1. Online;
2. For big-ticket items;
3. When a deposit is required;
4. At restaurants;
5. If you're a new customer;
6. When you buy now and take delivery later;
7. For recurring payments;
8. For future travel;
9. At gas stations and hotels; and
10. When the ATM looks "off."