What’s the Safest Way to Pay for Holiday Shopping? Credit Cards, Experts Say

In the final push to finish up my holiday shopping, I love the convenience of using a credit card instead of lugging around cash or keeping track of debit transactions. Plus, I can earn rewards on my purchases. But, there’s another reason I use credit cards for practically everything I pay for: their built-in consumer protections.
All of my rewards and travel credit cards come with $0 fraud liability protection, and federal law adds another layer of protection that makes credit safer than debit cards or cash. Those safety features can come in especially handy when I’m in a rush and maybe not paying as close attention during these last hectic days of the holiday shopping season.
Why you should use a credit card instead of a debit card or cash
One of the biggest perks of using credit cards is their increased protection against fraud.
While federal law limits liability to $50 if you report your credit card missing or stolen after someone uses it, credit cards tend to have a $0 fraud liability coverage.
Comparatively, if your debit card was lost or stolen and used for fraudulent charges, you could be on the hook for up to $500 if you reported your card lost two or more days after you learned it was gone (but within 60 calendar days after your statement is sent to you).
I wish I could say that’s where the trouble with debit cards ends. But if you report loss or fraud on a debit card more than 60 calendar days after your statement is sent to you, you could lose any money that was stolen from your linked debit accounts, according to the Federal Trade Commission.
Using a debit card as your primary payment method could lead to more problems if it’s stolen, according to money-saving expert Andrea Woroch. If someone has your debit information, they could steal money from a connected checking account. The money in your account could be tied up while the issue is resolved.
But your losses are limited if your credit card is stolen.