These 3 Bills Should Never Go on a Debit Card

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

[[{“value”:”My father-in-law just booked an $8,000 vacation — through a travel agent. (Honestly, I didn’t even know travel agents still existed.)Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But that’s not the wildest part — he paid for the whole thing with a debit card.I know better than to tell my FIL how to handle money, so I kept my mouth shut. But on the inside I was screaming, because not only did he just forfeit hundreds of dollars in credit card rewards, but he also missed out on potential travel insurance. If anything goes wrong on the trip, there’s very little recourse without insurance.Here are three situations when paying with a credit card is a far better choice than a debit card.1. Booking travelBooking flights, hotels, or vacation packages with a debit card is a rookie move. You should always use a travel rewards card. Here’s why:Credit cards offer rewards, like cash back, points, or miles. And most travel cards have a higher earning rate for travel bookings, like 5% of the cost of a flight.Trip protections are often built in. Many travel cards offer trip delay reimbursement, lost luggage coverage, and rental car insurance.Included travel perks — just by using the right credit card, you could get hotel upgrades, flight status upgrades, or even airport lounge access.Take my father-in-law’s $8,000 trip. Had he used a travel rewards card earning 5 points per dollar spent, he could’ve banked at least 40,000 points. This could be worth about $400 or more towards his next vacation. Also, if there’s a flight delay or issue, his card’s insurance might’ve kicked in.Are you earning the most travel rewards possible? Compare the best travel credit cards here, perfect for your summer travel plans.2. Major purchasesThinking of buying a new laptop, fridge, or Peloton? Skip the debit card and use a credit card.Many credit cards come with:Purchase protection against damage or theft within the first 90 to 120 daysExtended warranties that tack on extra coverage past the manufacturer warrantyEasy dispute processes if the item shows up broken or never arrivesLet’s say you drop your new iPad two weeks after buying it. If you used a credit card with purchase protection, your card company might pay for a repair or replacement.Extended warranties can be a life-saver, too. For example, one of our favorite cards offers amazing protections for shopping (and travel!), including extending the manufacturer’s U.S. warranty by an additional year. Read the full card review and details here.3. Online shoppingFraud is way more common online. And while both debit and credit cards offer some fraud protection, the difference is in how fast and how well things get resolved.With debit cards, any fraudulent transactions hit your bank account immediately. It can take days or weeks to get refunded, and meanwhile you’re out of pocket.With credit cards, you’re not liable for fraudulent charges (thanks to the Fair Credit Billing Act). You can easily dispute shady transactions before money comes out of your bank account.If you spot fraud, act fastNo matter what card you use, it’s always a good practice to check your transactions regularly.If you see something weird, call your bank or card issuer ASAP. They’ll put a lock on your card to stop more charges and help you file a fraud report.Debit cards have their place. But for travel, online shopping, and big-ticket buys, credit cards come out on top with better rewards, better protection, and more peace of mind.Check out our top pick credit cards for May 2025, packed with the most rewards and protections.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

My father-in-law just booked an $8,000 vacation — through a travel agent. (Honestly, I didn’t even know travel agents still existed.)

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

But that’s not the wildest part — he paid for the whole thing with a debit card.

I know better than to tell my FIL how to handle money, so I kept my mouth shut. But on the inside I was screaming, because not only did he just forfeit hundreds of dollars in credit card rewards, but he also missed out on potential travel insurance. If anything goes wrong on the trip, there’s very little recourse without insurance.

Here are three situations when paying with a credit card is a far better choice than a debit card.

1. Booking travel

Booking flights, hotels, or vacation packages with a debit card is a rookie move. You should always use a travel rewards card. Here’s why:

• Credit cards offer rewards, like cash back, points, or miles. And most travel cards have a higher earning rate for travel bookings, like 5% of the cost of a flight.
• Trip protections are often built in. Many travel cards offer trip delay reimbursement, lost luggage coverage, and rental car insurance.
• Included travel perks — just by using the right credit card, you could get hotel upgrades, flight status upgrades, or even airport lounge access.

Take my father-in-law’s $8,000 trip. Had he used a travel rewards card earning 5 points per dollar spent, he could’ve banked at least 40,000 points. This could be worth about $400 or more towards his next vacation. Also, if there’s a flight delay or issue, his card’s insurance might’ve kicked in.

Are you earning the most travel rewards possible? Compare the best travel credit cards here, perfect for your summer travel plans.

2. Major purchases

Thinking of buying a new laptop, fridge, or Peloton? Skip the debit card and use a credit card.

Many credit cards come with:

• Purchase protection against damage or theft within the first 90 to 120 days
• Extended warranties that tack on extra coverage past the manufacturer warranty
• Easy dispute processes if the item shows up broken or never arrives

Let’s say you drop your new iPad two weeks after buying it. If you used a credit card with purchase protection, your card company might pay for a repair or replacement.

Extended warranties can be a life-saver, too. For example, one of our favorite cards offers amazing protections for shopping (and travel!), including extending the manufacturer’s U.S. warranty by an additional year. Read the full card review and details here.

3. Online shopping

Fraud is way more common online. And while both debit and credit cards offer some fraud protection, the difference is in how fast and how well things get resolved.

With debit cards, any fraudulent transactions hit your bank account immediately. It can take days or weeks to get refunded, and meanwhile you’re out of pocket.

With credit cards, you’re not liable for fraudulent charges (thanks to the Fair Credit Billing Act). You can easily dispute shady transactions before money comes out of your bank account.

If you spot fraud, act fast

No matter what card you use, it’s always a good practice to check your transactions regularly.

If you see something weird, call your bank or card issuer ASAP. They’ll put a lock on your card to stop more charges and help you file a fraud report.

Debit cards have their place. But for travel, online shopping, and big-ticket buys, credit cards come out on top with better rewards, better protection, and more peace of mind.

Check out our top pick credit cards for May 2025, packed with the most rewards and protections.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More