Often it’s tempting to loan a debit card to a friend, complete with your pin, so that a purchase can be made more conveniently. But this can lead to a number of complications and should be avoided as far as possible. At the end of the day you are responsible for any transactions made with your card.

Debit cards directly access the card holder’s associated bank account. This may be a transaction account, or it may be a more substantial savings account, mortgage offset account, or even a home loan.

Loaning your debit card to anyone, even your best friend, is most times a bad idea. Not only are you at risk of losing money, you’re credit score and your personal information at risk too.

Reasons to loan out your debit card

So what do you do if you have a friend who asks you to let them borrow your debit card? You might be wondering whether or not it’s actually a good idea.

It could be a good idea if:

You trust your friend and you want to help them out in a difficult situation. Maybe they have an emergency expense or need to buy something important that they can’t afford right now.

You know you have enough money in your account and don’t mind sharing it with your friend. You know that your friend will pay you back as soon as possible and won’t abuse your generosity.

You have a really good relationship with your friend and you both won’t risk losing it over money. You think that lending your card is a nice small gesture that shows your friendship and loyalty.

It could be a bad idea if:

You don’t trust your friend and you think they might use it for something illegal or irresponsible. They might have a history of lying, drugs, stealing or problematic gambling and you don’t want to be involved in their problems.

You know you don’t have enough money in your account for both yourself and your friend. The money you do have you need for your own expenses. You can’t afford to lend your friend money that you might not get back.

You have a bad relationship with your friend and you think they might take advantage of you or betray you. You don’t want to lend your debit card because you fear that they might not pay you back.

Other things to try

So, if you do think your friend needs help, what are some other options rather than loaning out your debit card?

Maybe your friend needs money for an emergency? You could offer to lend them cash instead of giving them your card. This way, they’re not tempted to overspend and you can set a clear amount and repayment plan. You’ll also be avoiding any unauthorised fees and charges on your card.

If your friend needs money for a specific purchase, you could offer to buy it for them using your card, and have them pay you back later in instalments. This way, you can control what your card is used for and you’ll be present when the transaction is made.

There’s also other options like Buy Now Pay Later services that could help your friend out. Your friend could consider putting the purchase on Afterpay with the payments spread out fortnightly.

Potential next steps

Remember, it’s okay to just say “no” if someone asks you to loan them your debit card. It’s not selfish or mean by any means, you’re just looking after your money. By setting healthy boundaries with your friends, you’ll establish a level of trust that benefits everyone in the long run.