[uiri]

The essential difference is in the name! A debit card creates a debit from your account. It is your money that is used to complete the transaction. A credit card creates a credit to a revolving loan account. It is the bank's money that is used to complete the transaction (and you repay the bank separately). The bank cares a hell of a lot more about its money than it does about your money. Sure, regulations come into play as well but they're not enough to bridge that essential difference.

[wpietri]

For what it's worth, I split the difference and use a charge card. The American Express card I have needs to be paid off at the end of every month. I pay them an annual fee, and in return for that plus credit card fees, they try to keep me happy. They have been very good for me with things like dubious charges and bad vendors.

[stiglitz]

Ultimately we are talking about a feature whereby someone steals my card and buys something, and then I contest the purchase and don’t have to pay for it. So abstractly, is there really a difference?

Edit- Is the crucial difference that the vendor ends up losing the money rather than the bank in the case of credit cards?