Under federal law, if someone steals your credit card you're only responsible to pay the first Rs. 50 (for example) of unauthorized charges. However, if you notify the credit card issuer before a thief is able to make any charges you may be free from all liability. If the credit card is not physically present when an authorized or fraudulent purchase is made, such as over the internet, you're also free from liability for those charges. MasterCard and Visa offer zero-liability protection where you won't pay any charges if someone uses your credit card to make an unauthorized purchase. The protection offered to debit card fraud is similar but with a few exceptions. For example, your liability under federal law is limited to Rs. 50, the same as for a credit card, but only if you notify the issuer within two business days of discovering the card's loss or theft. Your liability for debit card fraud can jump up to Rs. 500 if you don't report the loss or theft within two business days. And if you are the type of person that gives a passing glance to your monthly bank statement, you could be totally liable for any fraudulent debit card charges if you wait 60 days or more from the time your statement is mailed. Visa and MasterCard zero-liability protection applies to your debit card but only for transactions that do not involve the use of your PIN (personal identification number). Additional protection against fraudulent use of your credit or debit cards may be available through your homeowner's or renter's insurance. Check your policy or with your agent for more information about your coverage. Also be aware that you should contact your card issuer by certified letter, return receipt requested, after you're contacted them by phone to protect your consumer rights. As for which card to use for that type of purchase, most experts agree that you should use your debit card for the same of purchases you'd make as if you were using cash. Therefore, it makes more sense to use your debit