Cash, Debit or Credit: What's the Best Way to Pay on Black Friday?

To borrow a phrase from Capital One, what’s in your wallet?

Come Black Friday, shoppers will need to know that answer as they hit midnight sales across the nation.

But what is the safest monetary choice when tackling Black Friday’s retail chaos?

CreditFYI.com spokesperson Carrie Coghill Kuntz says, “Debit cards aren't much different from carrying cash wherever you go—so you need to be careful."

Debit vs. Credit

While debit cards may seem the safer choice–using real money to pay instead of a line of credit–Kuntz said this is not always the case.

Because debit card transactions are made in real time, the money is immediately withdrawn from your account and this can mean overdraft fees or multiple charges if in the chaos, your card is swiped twice for the same purchase.

Using a credit card allows you to resolve disputed transactions before payment is made and banks will monitor suspicious credit activity.

However, while Kuntz recommends credit cards, she cautions customers about discount credit card deals.

Discount offers to open up a credit card during checkout (often to receive extra discounts) may be appealing, but Kuntz reminds that even if you plan on paying off the card or canceling it soon after, a new card means a pulled credit report. And too many "hard" inquiries to your credit can be damaging, according to MSN Money. 

Cards vs. Cash and Checks

So debit cards are a no, but what about cash and checks?

While the people behind you line will despise you for using this method, Kuntz said this is also a safe way to conduct transactions, as there is no credit number to steal and no way for a store to charge you twice without your knowledge.  

Prepaid Cards

For those who prefer shopping cashless, a prepaid card bearing the Visa or MasterCard logo are another option. Although these cards are still used primarily as gifts, they do offer a unique way to limit your spending without carrying cash. And because they are not credit cards, they do not impact an individual's credit.

When shopping on Black Friday, these cards allow shoppers to limit their spending. On Cyber Monday, a prepaid card offers added protection to online shoppers as they do not have to give out the account numbers of their higher-limit credit cards.

But regardless of what you choose to use, all Black Friday experts share this one piece of advice: set a spending limit before heading into the sales abyss.