Are debit cards safe? Here’s what to know

When you head out, chances are you bring your debit card. Tucked into your pocket or uploaded to your digital wallet, a debit card is a must-have if you need to withdraw cash or pay for anything with the money in your checking account.

In short, a debit card allows instant access to your money.

“It has the convenience of a credit card, but it doesn’t charge you interest,” says Kevin Smith, director of a financial services company. “It doesn’t allow you to overspend what you have.” 

Most debit cards are the standard cards that banks issue to customers. But there are a few other types of debit cards, including Electronic Benefits Transfer (EBT) cards, which are issued by government agencies to provide financial assistance. Another type of debit card is a prepaid debit card, which must be loaded with money before use. 

But are debit cards safe? Smith walks you through what you need to know about debit card safety below. 

Debit cards have a variety of security features, including a personal identification number (PIN). Only you should know your PIN. This is the most common way to access the money in your checking account.

“My first debit card had a magnetic stripe on the back,” Smith says. “I would swipe it, I would enter a PIN number and then it would process my transaction.”

Now, in addition to those magnetic stripes, debit cards usually have a microchip, or “chip” for short. Smith explains that the magnetic stripe, while reliable, could be copied by scammers. “Chips prevent cloning of cards much more effectively,” Smith says.

To pay with a chip-enabled debit card, insert it into the card reader. If both the card and reader support contactless payments, you can simply tap your card to pay. It’s quick and easy to pay for your groceries or coffee by just tapping your Capital One contactless debit card at the register.

The owner of the debit card has more control over debit card security than any new technology can provide, Smith says. It all comes down to being aware of how debit card fraud can happen and staying alert.

“When you go to a restaurant and you go to pay, sometimes they bring a terminal out to you at the table, but sometimes they bring the debit card to the back,” Smith says.

Smith suggests not letting your debit card leave your sight: “You don’t know if they’re going to the back room to write down your name, your debit card number, your CVV code and expiration code.” (The CVV code is the card verification value code, a three- or four-digit number usually found on the back of your card.) That’s all the information a fraudster needs to go on an online shopping spree with your card.

“To me, that’s the biggest risk—someone writing down your card details or taking a picture of it,” he says. He also recommends using cash if a gas station or store seems suspicious and avoiding that business in the future.

Smith says that online shopping is often the most secure way to use your debit card.

Before making an online purchase, check that the website address starts with “https”—the S stands for secure. Most browsers also show a padlock icon next to the address bar as a sign the site is safe. If a site isn’t secure, your browser will usually warn you before you visit it.

When using an ATM, pay attention to your surroundings, especially if you’re withdrawing cash after dark and alone. Scammers can place small devices called “skimmers” on ATMs and card machines, often at gas stations, to steal your debit card number and use it to make fraudulent purchases.

In all situations, make sure that no one is looking over your shoulder as you enter your PIN. And if you don’t need a receipt, don’t print one. They sometimes contain account information. Capital One makes accessing your money simple by allowing you to complete cardless ATM withdrawals at select machines—no physical debit card needed.

While most merchants use chip readers, be aware of machines that only allow you to swipe the card. While these machines are less common today, they still exist and are more likely to have skimmers.

Adopting some debit card security best practices can go a long way toward making sure it’s safe and secure to use your debit card. Plus, many of these also double as good habits that you can build with your debit card.

PIN numbers are another way to keep your account safe, and they’re more secure than a simple signature. But it’s important to keep your PIN safe. Smith says not to keep a record of your PIN in the same place as your actual physical debit card and to avoid giving your PIN to others.

“If you really want to be secure with your PIN, you should change it once in a while,” he says. Ideally, you’d update your PIN every few months. But Smith says that even once a year would keep most consumers ahead of the curve.

Some banks that issue debit cards will send alerts or notifications about overspending or suspicious activity, which can help you spot a fraudulent charge.

Depending on your bank, you may also be able to set up alerts for account balances, large withdrawals and changes to your login or contact information.

“If you’re using your debit card for mostly online purchases, your biggest risk is not so much the security of the card,” Smith says. “The biggest risk is general overspending.” To avoid that risk, overdraft protection can help you save on fees by using money from a linked account, such as an online savings account, to cover a negative balance.

Banking should be on your side. That's why you won't pay overdraft fees with Capital One 360 Checking.

If you lose your card, have it stolen or notice a fraudulent transaction, you need to know the steps to take.

“Lock the card immediately,” Smith says. You can do this by calling your bank or disabling the card through your bank account’s website or app. If you ever misplace your 360 Checking debit card, it’s easy to lock and unlock it instantly right in the Capital One Mobile app.

After locking the card to prevent any further fraudulent transactions, you may wonder: Can I track my debit card if it’s lost or stolen? Unfortunately, that’s not possible. Unlike smartphones, debit cards don’t feature any location-tracking technology.

If you think you’ve just misplaced your card, you may want to disable it for a short time.

But regardless of whether your card is lost or stolen, you should closely monitor your account activity to see if any additional fraudulent transactions occur when the card is out of your possession.

If you’re still wondering, “Are debit cards safe?” Smith says the answer is yes. Just make sure you keep his best practices in mind so that your debit card information doesn’t fall into the wrong hands.

• Protect your PIN. Keep your PIN private, don’t store it with your card and consider changing it from time to time. 

• Monitor your account and set up alerts. Regularly review your transactions and enable notifications for suspicious activity, large purchases or low balances. 

• Act quickly if your card is lost or stolen. Lock or disable your card immediately, contact your bank and watch your account for unauthorized transactions.

Now that you have a few tips on how to safely and securely use your debit card, you can empower other people in your life to do the same. For example, you can give your teen independence with their MONEY Teen Checking account while still having the ability to lock their card from the Capital One Mobile app if needed.