There are too many risks with debit cards in their current form, therefore I don't use them. I've never quite understood why anyone would want or need one, but that's probably because my financial needs are quite simple compared to many these days. Everything goes into my accounts via direct deposit, and when I need some pocket cash I use an ATM only card at my banks ATM. Most purchases of any consequence are put on a rewards type credit card that pays me back 1%, and the balance is always paid in full so there is no interest or other cost to me and I'm basically using the bank's money for up to a month for free. Until the banking industry starts charging interest from the date of the transaction (which I expect to see eventually), this method beats the heck out of a debit card that transfers the money from your account immediately.
For those who can't use credit cards, for whatever reason, then maybe debit cards make sense if structured properly. But I've always looked at them as something the banks pushed to cut their costs and shift more risk onto consumers. Maybe we should put all the plastic away for a month and just write checks and use cash; that might cause a banker or two, and a lot of retailer's, to scratch their heads and look at the issues seriously at least.
Jerry
Author
Topic: Debit cards, credit cards and the Target hack (Read 4434 times)