10 Times to Never Use Your Debit Card, Financial Experts Say

Having a debit card in your wallet comes as a major convenience. The small pieces of plastic can safely replace wads of cash while avoiding some of the overspending risks or fees associated with a credit card. But just because technology has made it easier to swipe them in more places than ever doesn’t necessarily mean they’re always the best option. Read on for the types of purchases or other times where you should never use your debit card, according to financial experts.

RELATED: Never Use Your Credit Card for These 6 Purchases, Financial Experts Say.

1. Filling up the gas tank

Keeping your vehicle fueled up can often feel like the biggest drain on your budget. Of course, recent sky-high prices have all but assured that most trips to fill up will require a swipe to cover the cost. But even as gas prices begin to fall back to normal, you may want to break the habit of using your debit card at the pump.

“Many gas stations pre-authorize a certain amount before you pump gas, which can result in a temporary hold on a large sum of your funds,” says Tim Doman, the newly appointed CEO of TopMobileBanks. “If you do not have enough funds in your account, this can result in overdraft fees and other penalties. Using a credit card instead allows you to avoid these holds and potential overdrafts.”

2. When you’re missing out on potential rewards opportunities

Even if you’re on a budget, spending money on necessities is still a fact of life. That’s why experts say you should ensure you’re seeing the benefits of money going out by using the correct form of payment to potentially get something back.

“Using a debit card over a credit card to pay for a purchase could cause you to miss out on earning valuable rewards in the form of cashback, points, or airline miles,” consumer expert Andrea Woroch tells Best Life. “Review your spending habits to figure out where you spend the most and find a credit card that gives you more rewards for that category to maximize your earning potential.”

3. For high-value items or big purchases

It’s rare for anyone making an expensive purchase to show up with cash to cover the cost. But if you’re in the market for big-ticket items such as jewelry, electronics, or household appliances, experts caution that you’re safer using a credit card than a debit card.

“Debit cards are risky to use because the fraud protection benefits are much more limited compared to credit cards,” says Robert Farrington, founder of The College Investor. “If there are any issues with transactions, the money comes right out of your checking account. That could put you in a tough spot when it comes to paying bills or rent.”

Credit cards also allow you to take advantage of the extended warranties or special return policies on these expensive items.

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4. When you don’t have much in your bank account

One of the benefits of using a debit card over a credit card is that you can avoid overspending. But while this is true for long-term budgeting, you can also ultimately pay a lot more if you swipe while you’re low on funds.

“When you spend more than you have in an account, the bank can charge an overdraft fee, ranging anywhere from a few dollars to dozens of dollars,” warns Riley Adams, founder and CEO of WealthUp.com. “Make a few purchases that overdraw your account in a row, and it could result in hundreds of dollars in costly fees.”

Fortunately, there’s a relatively easy way to avoid this situation.

“Make it a habit to check your checking account balance on a regular basis and move money from savings to checking before you start spending,” says Courtney Alev, consumer financial advocate at Credit Karma. “You can also opt out of any overdraft protections your bank puts on your account so that your card is declined if you don’t have enough money to make a purchase.”

5. Any transactions abroad

There are plenty of benefits to swiping your card when you travel internationally. Apart from avoiding the costly fees associated with currency exchange, you’ll also avoid losing large sums of cash due to a misplaced wallet or theft. But before you swipe, make sure you’re not using a debit card to make your purchase.

“The conversion rate used by foreign ATMs or merchants can result in a lower exchange rate than what you would get with a credit card,” says Doman. “Also, foreign transaction fees can be significantly higher with a debit card. If you are traveling internationally, it is best to use a credit card with no foreign transaction fees or withdraw cash in the local currency using your debit card only in emergencies.”

6. When dealing with certain businesses

Running your debit card during a purchase is unquestionably a convenience for the customer. But for the business accepting your payment, it means they may be making less off the sale when you swipe or tap.

“Small retailers, utility companies, and other businesses may charge a processing or convenience fee when paying with debit rather than cash or check,” says Woroch.

Before you agree to eat the extra cost, review the potential fees before paying to decide if it’s worth it. “Otherwise, find a nearby ATM that partners with your bank or pop into a large drugstore or grocery store to request cash back to save,” Woroch suggests.

7. When making any recurring payments

Let’s be honest: Paying your monthly bills is never a fun activity. Fortunately, it’s a lot easier to manage them with online payments—some of which can even be made automatically. But just because you can settle your dues through your phone or computer doesn’t mean your debit card is a suitable option.

“If you have recurring payments for services such as a gym membership, a subscription-based service, or a utility bill, it’s best to use a credit card,” advises Doman. “If a recurring payment is made using a debit card, a temporary hold or pre-authorization can be placed on your account, potentially leading to overdraft fees or unavailable funds.”

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8. When you need purchase protection.

At face value, using your debit card and credit card can feel practically identical. But similarly to losing cash in your wallet, your debit card often has relatively limited protections compared to credit cards—meaning you could be on the hook for purchases you didn’t even make.

“If you report your debit card missing before any unauthorized charges are made, you’re not responsible for unauthorized transactions,” Alev says. “But, if you report it lost or stolen within two business days of learning about the loss or theft, your maximum financial loss is the lesser of $50 or the total amount of unauthorized transfers.” If you wait even longer, you could be responsible for $500 or more.

And when it comes to costly purchases you do make, you could miss out on the extra warranties or other benefits by swiping the wrong card. “Many credit cards offer additional consumer protections such as purchase protection that you’re unlikely to get from a debit card,” she says.

9. For online purchases

E-commerce has made shopping so convenient that it can sometimes be arguably too easy. But before you elect to have something shipped to you, experts caution that you should think twice about your payment method.

“I advise against using a debit card for online purchases, especially on sites that you are not familiar with or that have a questionable reputation,” says Doman. “Debit cards are directly linked to your bank account, making it easier for hackers to access your funds if your information is compromised. On the other hand, credit cards offer greater protection against fraudulent purchases, as you can dispute the charges and your money is not directly tied to the card.”

This can also make events like data breaches or identity theft more expensive to deal with.

“Yes, if there are fraudulent transactions, the bank will reimburse you up to the limits allowed by law—but it could take upwards of 60 days,” Farrington explains. “Furthermore, depending on when you notify your bank, you could be on the hook for some of the issues. If you notify your bank within 48 hours, you could still owe $50—and after two days, you could still owe up to $500!”

10. Hotels and other travel expenses

From meals out on the town to exploring a new city’s shops, it can feel much easier to spend money when traveling. But before you go to check into your accommodations or pull off the rental car lot, you should consider having a credit card on hand to pay for them.

“People should know when they’re traveling that renting a car using a debit card can result in a hold on a large sum of money from your bank account. And many hotels will pre-authorize a certain amount on your debit card for incidentals such as room service or internet usage,” Doman tells Best Life. “This can result in a hold on a large sum of your funds, making it difficult to access your money for other expenses. Using a credit card instead can help avoid these holds and potential overdrafts.”

“Additionally, car rental companies may also check your credit score when you use a debit card, potentially leading to further holds or declines,” he adds.