6. Rental or Security Deposits

For hiring a car on rent or any heavy duty machine, avoid the use of debit card. The reason is because the business will actually take the money out of your account in the form of a security deposit. You’ll get the cash back when you return the car. If you use your credit cards you will be saved from making payments made from your earned money, as it’s your credit card company who will make the payments on your behalf .which means your money would only be ‘frozen’.

7. Setting up Automatic Payments

Using a debit card to set up automatic payments is like allowing someone to debit money directly from a checking/savings account. Once such permission is set, it can be stopped and modified, but don’t forget that such an automatic payment is permitted. You should make sure that all the details and information regarding deductions and remained balance should be clearly mentioned in the bill provided by the company.