If there’s an unauthorized charge made on your credit card account, no money is taken from you. There’s no immediate financial hit while you straighten things out. But if someone gets hold of your debit card information, your bank account will be drained depending on the nature of the transaction.
Differences between a credit card and a debit card:
Debit cards fall under a different federal law than credit cards. Regulation E, the Electronic Fund Transfer Act, says after two days, you could be liable for up to $50. After 2 days liability jumps to 500.00. Beyond 60 days, you could be liable for all unauthorized transactions. Otherwise, federal rules are on the bank’s side. Beyond 60 days, there’s likelihood you’ll never see your money again.
Federal law protects you from unauthorized charges made with your credit card number rather than with the actual card. In the event the credit card is in a thief’s hands, you’ll be liable, but only for a maximum of $50, provided you report the problem to the credit card company. However, in many cases a zero liability policy may kick in.
There are many things that can go wrong. Best solution is to pay close attention to your statements, online or via a mobile app, frequently. Report if there’s a malicious transaction.