Canadian here, and I find that most of my peers (30s) use their credit cards for almost everything and their debit cards collect dust. The reasons are several:
1) CCs offer rewards (travel, cash back), usually in the range of 2% of purchases
2) CCs offer insurance and extended warranties on some purchases.
3) CCs help you build a good credit rating, which is important for someone who intends to apply for a mortgage at some point.
4) CC offer superior protection to debit cards. Yes, CC fraud may be easy, but as the card holder you will almost never be on the hook.
I've had my CC compromised, the bank detected it immediately and issued me a new one. Never was there any question who would bear the cost of the 5-figures that the fraudster spent. My brother had his debit card compromised once and the story was completely different. The bank wanted him to prove that the fraudulent transactions were not his and he had to go to great lengths to do so.
I do to for similar reasons. But I will use debit if the merchant extends me a discount, one of the gas station here for example gives me 2 cents off per liter which works out as more than the rewards.
However, I never do cash cause I never have cash on me. It's Credit for reward and then debit.
That said, I know a lot of people who don't do the rewards maximizing. Programmer/engineer crowd tends to self-select for people who are logical and number inclined.
On the other side of the fence, also Canadian, my debit card has been compromised many times. Bank always shuts it down immediately and lets me know, then returns the money. I have never been asked to prove anything. Usually they ask me to double check and see if any other charges than the ones they caught were fraudulent.
This has been as simple as someone using a copy of my card to buy candy and video games, something I could have done but didn't in this case.
Really impressed with the services of my banks when it's come to debit fraud.
1) CCs offer rewards (travel, cash back), usually in the range of 2% of purchases
2) CCs offer insurance and extended warranties on some purchases.
3) CCs help you build a good credit rating, which is important for someone who intends to apply for a mortgage at some point.
4) CC offer superior protection to debit cards. Yes, CC fraud may be easy, but as the card holder you will almost never be on the hook.
I've had my CC compromised, the bank detected it immediately and issued me a new one. Never was there any question who would bear the cost of the 5-figures that the fraudster spent. My brother had his debit card compromised once and the story was completely different. The bank wanted him to prove that the fraudulent transactions were not his and he had to go to great lengths to do so.
My personal preferred order of payment is:
CC
Cash
Debit (last resort)