Get a free, no obligation personal loan quote with rates as low as 6.99%
Get Started You can apply with no effect to your credit score

Using your debit card to pay for drinks and food at a bar is an obvious choice for most, and it’s probably even helped a lot of people cut down on their credit card debt. The convenience factor is high, no worrying about racking up a huge credit card bill and ruining your credit, it’s small and easy to store in your pocket and you can create a tab with it so you only have to pay once at the end of the night.

But, what you probably don’t know is that debit cards are just as susceptible to fraud as credit cards and the ramifications are sometimes way worse. Your debit card is attached to all your hard earned money and it could potentially be all gone with a simple swipe of your card one Friday night, so think hard before you take your debit card to the bar with you.

Below are six reasons why you shouldn’t use your debit card at a bar.

1. Dishonest Employees

Whether it’s the bartender or the waiter, leaving your card with them can be a seriously bad idea. Almost all bars require you to give your card to your server to open a tab which means it’ll be out of your sight all night long and probably won’t be stored in a safest place. Obviously not all people working at bars are criminals or out to rip you off but even if you trust the bar or your server there are countless other people (who have been drinking) wander around the bar and who knows that they’re all up to or what might happen.

2. ATM Fees

Now that you’re too scared to open a tab at your local bar you’ll probably head to the sketchy ATM conveniently located right next to the door when you first walk in. This is also a bad idea as the fees you’ll pay to use the ATM could pay for another drink that night or another night. Instead make a quick pit stop at your bank before you head out for the night or better yet do it on your lunch break or first thing in the morning that way you won’t be tempted to skip the stop before the bar.

3. ATM Fraud

Let’s say you decide (against your better judgment) to use the ATM at the bar, well not only will you have to pay the fees but someone has put a “skimmer” on the machine to read all your card and bank information and can now use your money to pay for their drinks. It’s a bar not a bank so people probably aren’t paying that much attention to the ATM in the corner, identity fraud is not what you want to wake up to in the morning so go to the bank.

4. No Points

Using your debit card to pay for fun activities and nights out is technically a great idea because you’ll be spending the money you actually have and won’t be tempted to rack up a huge credit card bill. But, if used properly and responsibly a credit card can earn you points that you can use towards a vacation, a fun purchase or even to simply buy more drinks the next time you go out.

5. Over Spending

Going to the bank to withdraw cash before heading to the bar for the night has many advantages, like the ones we discussed above. But it could also prevent you from over spending especially if that’s a bad habit of yours. Taking out X amount of cash from the bank as a sort of budget for yourself is a great way to keep your spending in check.

6. Dealing with Fraud

Dealing with fraud associated with your debit account is one of the biggest hassles you never want to face. It’s different for every bank and every situation but let’s put it this way, if you happen to miss the fraudulent activity and only realize months later you could have some serious trouble getting your money back or you might never see it again.

Debit is convenient but in certain situations the risk out ways the convenience. There are countless benefits for choosing to take cash to a bar over using your debit card, think smart and plan in advance before you head out for the night. Because if your card is stolen or copied and all your money is taken we can guarantee that your landlord won’t care when you don’t have the money to pay your rent.

Caitlin Wood, BA avatar on Loans Canada
Caitlin Wood, BA

Caitlin Wood is the Editor-in-Chief at Loans Canada and specializes in personal finance. She is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. Caitlin has covered various subjects such as debt, credit, and loans. Her work has been published on Zoocasa, GoDaddy, and deBanked. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security.

More From This Author

Special Offers

More From Our Experts

https://loanscanada.ca/wp-content/uploads/2023/09/GlobeMailTopCompanies2023-1.png
Loans Canada places No. 228 on The Globe and Mail’s fifth-annual ranking of Canada’s Top Growing Companies.

By Caitlin Wood, BA
Published on September 29, 2023

Loans Canada is excited to announce it has made it onto the Globe and Mail’s Top Growing Companies list for the second year in a row.

https://loanscanada.ca/wp-content/uploads/2023/09/Finder-Awards.png
Finder Awards Finalists: Personal Loans Customer Satisfaction Awards 2023

By Priyanka Correia, BComm

Loans Canada is happy to announce it received the finalist award in the Best Personal Loan Search Platform category.

https://loanscanada.ca/wp-content/uploads/2016/12/caution-1.jpg
Beware of Fraudulent Lenders Impersonating Loans Canada

By Caitlin Wood, BA

A note to our clients about fraudulent lending practices and illegal upfront fees.

https://loanscanada.ca/wp-content/uploads/2022/10/How-To-Pay-Your-Taxes-With-A-Credit-Card-Through.png
How To Pay Your Income Taxes With A Credit Card

By Lisa Rennie

If you’d like to pay your taxes using a credit card, you’ll need to use a third-party service provider like Plastiq or PaySimply.

https://loanscanada.ca/wp-content/uploads/2021/08/Climate-Action-Incentive-CAI-1.png
What Is The Canada Carbon Rebate (CCR)?

By Bryan Daly

The Climate Action Incentive Payment (CAIP), or Carbon Tax Rebate, is quarterly benefit paid to eligible Canadians in

https://loanscanada.ca/wp-content/uploads/2021/03/Canada-Workers-Benefit-CWB.png
Can You Claim The Canada Workers Benefit (CWB) In 2024?

By Bryan Daly

The Canada Workers Benefit is a refundable tax credit for individuals earning a low taxable income of $3,000 - $24,112.

https://loanscanada.ca/wp-content/uploads/2020/12/Student-Tax-Credits-and-Deductions.png
Student Tax Credits In Canada

By Chrissy Kapralos

Similar to how there are specific tax credits and deductions for businesses, seniors, and parents, there are student tax credits in Canada.

https://loanscanada.ca/wp-content/uploads/2021/04/Pay-Less-Taxes-Canada.png
How To Pay Fewer Taxes In Canada

By Bryan Daly

People are always trying to figure out how to save money on taxes in Canada. We present the best ways to legally pay less tax in Canada.

Recognized As One Of Canada's Top Growing Companies

Loans Canada, the country's original loan comparison platform, is proud to be recognized as one of Canada's fastest growing companies by The Globe and Mail!

Read More

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Free
Service
Expert Tips
And Advice
Exclusive
Offers

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.

Koho Prepaid Credit Card