Why is it generally considered better to use a credit card rather than a debit card for online purchases?

• A. Debit cards always provide higher reward points than credit cards.
• B. Using a credit card guarantees that you will not be charged any interest on your purchases.
• C. Credit cards typically offer better fraud protection and limit your liability for unauthorized transactions.
• D. Debit cards allow you to spend more than your account balance, which is safer for online shopping.

Answer: (C)

Verified step by step guidance

1. Understand the key differences between credit cards and debit cards in terms of fraud protection and liability for unauthorized transactions.
2. Learn that credit cards typically offer better fraud protection because they are not directly linked to your bank account, reducing the risk of losing funds in case of unauthorized transactions.
3. Recognize that credit card issuers often limit your liability for unauthorized transactions, meaning you are less likely to lose money if your card information is stolen during online purchases.
4. Compare this to debit cards, which are directly linked to your bank account. Unauthorized transactions on a debit card can result in immediate loss of funds, and recovering the money may take time.
5. Conclude that using a credit card for online purchases is generally safer due to enhanced fraud protection and limited liability, making it a better choice for online shopping.