6 Reasons Why I Never Use a Debit Card for Travel

I used to travel using a debit card and thought I was being financially responsible, but I’ve learned over the years that it’s risky and inconvenient.

For years, I used debit cards exclusively for both travel and other purchases for years because I worried about going into debt. But I learned to treat my credit card like a debit card. I still follow a budget while tracking expenses, and I pay the balance in full when my statement due date comes.

Here are more reasons why I made the switch years ago and don’t plan to go back.

1. Booking Travel Gets Complicated

Debit cards often make refunds more of a hassle. I usually book directly with airlines or hotels or through a major travel portal such as Chase Travel or Capital One Travel — smoother experiences when using a credit card. But using a debit card was messy when I needed to cancel or make a change.

For example, I once had to cancel a flight and rebook with a different airline. I’d paid with my debit card, and it took several days to get a refund. That’s money I could have used when rebooking my flight.

The U.S. Department of Transportation requires prompt refunds from airlines, but credit card refunds get priority. Credit card refunds must be processed within 7 days, while other payments can take up to 20 days and still be considered prompt enough for the DOT.

When I book flights now, I usually use The Platinum Card^® from American Express, as it earns 5 points per $1 on directly booked flights and on AmexTravel.com (up to $500,000 per year), and offers travel insurance benefits. If I need to get a refund on flights, I can expect to get it within a week on my Amex Platinum card, which should be well before that month’s Amex bill is due.

The same delay applies to hotel bookings. When I cancel a refundable hotel reservation paid for with a debit card, the refund can take days to hit my account, even if the hotel processes it quickly.

Rental car companies typically accept debit cards with a Visa or Mastercard logo, but they may apply stricter conditions. Rental agreements often require a ticketed return flight and limit the car types you can rent with a debit card. These aren’t issues when I pay with my Chase Sapphire Reserve^®, which offers primary rental car insurance.

2. Authorization Holds Freeze Your Funds

Tying up funds is one of the main reasons I stopped using a debit card for travel. Travel usually comes with authorization holds, and those holds came out of my bank account when I used a debit card.

When paying with a debit card, rental car companies and hotels typically expect the full cost of the reservation plus security deposits. When I pay with a credit card, holds use the credit card issuer’s money — not money in my bank account.

When I checked into a hotel or picked up a rental car with a debit card, I had to pay for what I owed as well as authorize a higher amount to cover potential incidentals. That money wasn’t technically spent, but it was unavailable until the hold was released — which could take days or over a week. That meant it was money I couldn’t spend while traveling.

In other words, when I pay with a credit card, holds only eat into my available credit, but with a debit card, it locks up money in my bank account.

For example, I used a debit card to check into a hotel for 4 nights that had a $100-per-night authorization hold. That was $400 out of my bank account that I didn’t get back until we were home — but that I would have liked to use it while traveling.

Gas stations do this too, with pay-at-the-pump authorizations for $100 or more, even when I only need about $35 worth of gas. On a road trip, those extra authorizations can add up fast.

With a credit card, I don’t have to worry about holds cutting into my available funds and can keep track of what’s actually charged to my account compared to what’s only pending. And if there’s anything wrong on my account, I have time to deal with it before my credit card bill is due.

3. Fraud Puts Cash on the Line

Another big reason I stopped using debit cards for travel is the way fraud is handled. Although debit cards offer some fraud protection, my debit card is tied directly to my bank account. Any fraud that hits the account comes out of my available funds. I can contact the bank and get a provisional credit, but that money is at risk until the fraud gets resolved.

Federal law limits cardholder liability for unauthorized credit card transactions to $50, though most credit card issuers have zero-liability policies. Often, Visa and Mastercard debit cards have zero-liability protection, but the dispute process can take longer and require provisional credits, unlike credit cards that handle disputes using the issuer’s funds.

Using a credit card for all travel transactions gives me a buffer between my bank account and fraud. If there’s a problem, I can contact the issuer and resolve it before my credit card bill is due. Just like incidental holds at hotels or rental cars, using a credit card allows me to put the credit card issuer’s money on the line rather than mine. Whether it’s a duplicate charge, a merchant error, or actual fraud, using a credit card gives me time to handle it without having to make up the difference in my bank account.

4. No Travel Insurance

Debit cards lack the travel protections that come with many travel credit cards. These protections, including trip cancellation and interruption, trip delay, and baggage insurance, can offer financial relief when travel plans go wrong.

I booked a flight with my Chase Sapphire Reserve card and got a comfortable place to sleep when the flight was delayed overnight. I didn’t pay a penny out of pocket, as my trip delay claim was approved before my card’s statement closed.

I can book and travel confidently knowing that if I need to change my plans for a covered reason, my trip cancellation and interruption coverage can pay me back for nonrefundable expenses. Baggage protection on my credit cards, including baggage delay and lost luggage reimbursement, means I don’t have to panic if my bags don’t make it to where I’m going.

My Chase Sapphire Reserve card is the only way I pay for rental cars, as it offers primary rental car insurance. All I have to do is decline the rental car company’s insurance and pay with the card. It provides protection for damage or theft of the vehicle, and I don’t have to involve my personal auto insurance.

5. Debit Lacks Travel Rewards and Benefits

Even if debit cards worked smoothly for travel, I still wouldn’t use them, because they lack rewards and significant benefits. Some offer cash-back, but most don’t offer travel rewards and perks such as airport lounge access or expedited security.

When I book a $500 flight directly with the airline using my Amex Platinum card, I earn 2,500 Membership Rewards points. According to our valuations, those points are worth $55, so it’s like getting an 11% discount on my flight.

Credit cards also unlock benefits that make the trip better. My Amex Platinum card offers lounge access, expedited security screening, and elite status with Hilton Honors and Marriott Bonvoy upon enrollment, among other travel benefits.

Those benefits help me get into the airport faster, relax with complimentary food and drinks, and get special treatment at hotels, such as early check-in, late checkout, and room upgrades.

6. Foreign Transaction Fees Add Up

Some checking accounts offer no foreign transaction fees on debit card purchases, but waived foreign transaction fees are much more common on travel rewards cards. Most debit cards charge foreign transaction fees of 1% to 3% on every purchase, which can add up.

For example, a 3% foreign transaction fee on $300 is $9. My travel cards don’t charge foreign transaction fees, which means savings when I’m traveling abroad.

Final Thoughts

I don’t use a debit card to book travel, but it still has a place in my wallet. I still bring a debit card just in case I need to withdraw cash, but I don’t swipe it at stores, restaurants, or other merchants, as it’s too risky. It’s much easier to use a credit card that offers layers of insulation between my cash and transactions and lets me review charges before paying.

Credit card benefits and rewards are too valuable to pass up, especially when making travel purchases. It’s been a game-changer for me to choose good travel cards, treat them like debit cards, and never carry a balance — while still taking advantage of the savings and convenience I get from credit card rewards and benefits.

For the extended warranty benefit of The Platinum Card^® from American Express, eligibility and benefit level varies by card. Terms, conditions and limitations apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

For the purchase protection benefit of The Platinum Card^® from American Express, eligibility and benefit level varies by Card. Terms, conditions and limitations apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

For Capital One products listed on this page, some of the above benefits may be provided by Visa^® or Mastercard^® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.