Another big benefit of credit cards is the fact that they almost all come with 0% fraud liability. This means that, if someone makes a fraudulent purchase with your credit card or card number, you won't be on the hook.
The absolute most you may be liable for under the Fair Credit Billing Act (FCBA) is $50 for credit card fraud, and even that's rare since most cards extend zero liability coverage.
Read more: A security expert says credit cards are still the safest way to pay, but you should "lie like a superhero" when you set up the account
But liability on debit cards doesn't work that way. According to the Federal Trade Commission (FTC), your liability with a debit card is limited to $50 if you report a loss within 2 days of finding out about it but up to $500 if you report the loss within 2 to 60 days of your statement being sent to you.
If you don't report the fraud within 60 days after your statement being sent to you, on the other hand, you could lose "all the money taken from your ATM/debit card account, and possibly more; for example, money in accounts linked to your debit account," notes the FTC.
Read more: How to set up fraud alerts and freeze your credit