Prepaid Cards can Protect you from Credit Card Fraud
You go out to eat at a local restaurant and pay with your Debit Card. The waiter copies the Debit Card information and buys a new 42″ HD TV. You are now a victim of Bank Card fraud (not Identity Theft). $513.44 disappears from your checking account. Your rent, power and cell checks bounce. The bank charges you NSF fees of $105 that causes more payments to bounces. Now you have to proof you did not purchase the TV. You have to beg the bank to refund the $513.44, plus the NFS fees.
Ok, let’s say you used a Credit Card rather than a Debit Card. The waiter steals the Credit Card information and buys the TV. Now you call the Credit Card company and tell them the charge is not yours. They remove the charge. No extra fees, but you do need to get a new card. Plus you need to update all those auto payments.
It is easier to say you will not pay a fraudulent charge than it is to beg for the return of your money.
Another option is to pay with cash. The forth option is a Prepaid Card. You load an amount on the card. If the card information is stolen, then you are only out the money you loaded on the card. There are fees for using Prepard Cards, so you need shop around.
Tip: Do not use Debit Cards.