Some people still pay cash for everything, but more people carry plastic cards instead of a wallet full of money. There are credit cards, debit cards and prepaid cards, all with their own pluses and minuses. What’s the right choice for you?

Credit cards have the most protection against fraud: if your card is stolen, you are responsible for no more than $50.00 in unauthorized purchases. The cards build credit history, and some offer rewards. But some folks fear they’ll overspend.

Debit cards limit how much you can spend—the amount in your bank account. But if the card is stolen and you don’t report it promptly, you may be liable for all the charges on it.

Most prepaid cards don’t offer protection against unauthorized use, except for those payroll cards that employers use to pay wages; they work like debit cards. It’s smart to check your account regularly for any suspicious activity.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.

He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

http://www.nickersonpa.com/