Credit and Debit Cards_ What You Need to Know

Debit or credit? Pay now or pay later? The New York Times has a story that looks at the pros and cons of credit and debit cards. In July I took a stab (story link) at the issue as well. You should read both stories. I’m more biased toward credit cards, but I’m not one of those fanatics who says that debit cards are evil and should be avoided at all costs. But, given the choice, I’ll take credit over debit. From the Times:Federal law also protects you if you need to dispute charges on a credit card, but not if you use a debit card or other forms of payment. If you paid cash or used a debit card, the retailer already has your money. So you have a lot less leverage, and there’s no guarantee you’ll get that money back. But if you pay for something with your credit card and aren’t happy with the purchase, your card issuer can legally withhold payment from the retailer until they resolve the dispute, and you won’t be charged.