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Debit cards are wonderful things. Convenient things. Empowering things.

They also can be dangerous things.

That well-worn, frequently swiped chunk of polyvinyl chloride acetate wedged between your niece's snapshot and a faded WalMart receipt is actually an instrument of potential financial destruction. Yours may be printed with the same Visa or MasterCard logo that your credit cards bear, but it doesn't carry the same protections, and poses far more risk.

With a credit card, most folks feel secure that a thief won't be able to cause too much damage trying to use a lost or stolen card. Not so with most debit cards.

If you wait too long to report that card stolen, you could even lose everything in your account, with little recourse.

To a degree, the law does protect you from unauthorized withdrawals -- but only if you report an ATM or debit card missing to the issuer before it's used without your permission. If unauthorized use occurs before you report it, the amount you can be held responsible for varies, depending on how quickly you report the loss, according to the Federal Reserve Board.

* If you report the loss within two business days after realizing your card is missing, you are responsible for a maximum of $50.

* If you fail to report within two business days, but do report its loss within 60 days after your statement is mailed to you, are responsible for a maximum of $500.

* If you fail to report within 60 days after your statement is mailed to you, you risk unlimited loss -- that is to say, all of the money in your account and the unused portion of your maximum line of credit established for overdrafts. The institution has no obligation to conduct an investigation if you've missed that 60-day deadline.

Your only recourse is to fight with the bank to get the money back. That's far trickier than fighting with a credit card company to get disputed charges removed, according to the federation of state Public Interest Research Groups. And the Privacy Right Clearinghouse warns that it can take weeks for banks to restore money to your account, even if you are "protected." That could means weeks of not being able to pay bills.

And even if you act quickly, there's still some risk if you don't follow through. Don't assume you've caught things in time -- keep an eye on statements for unauthorized transfers, and challenge them immediately. The FTC says the best way to protect yourself is to notify the financial institution by certified letter, return receipt requested, so you can prove that the institution received your letter. Keep a copy of the letter for your records.

Your bank must acknowledge your complaint in writing within 30 days -- unless the problem has been fixed -- and must resolve the dispute within two billing cycles after receiving your letter.

To be extra safe, you could ask your bank to issue you an ATM-only card instead of a debit card. A PIN is needed to use these cards, giving them an added level of safety.

When you order items on the Internet or over the phone, be aware that debit purchases carry more risk than card purchases. Be sure the merchant willingly posts information about the process on the website or explains the process over the telephone. And be sure they ask for your permission to electronically debit your bank account each time.

Be especially wary if you have not initiated the call. And remember, in most cases, unlike with credit cards, the law does not give you the right to stop payment in an electronic fund transfer -- when it comes to getting your money back, you're on your own.

There is one exception. If you have arranged to make automatic deposits, you can stop them, so long as you notify your institution at least three business days before the scheduled transfer, according to the Privacy Rights Clearinghouse.

Bottom line, it's much safer to shop online with a credit card -- if the item arrives damaged, or never arrives at all, you'll be responsible for just the first $50 in most cases.

One pitfall of debit-cards has been eliminated. Not long ago, banks routinely processed charges even if there were insufficient funds in your account, allowing you to unknowingly dig yourself deeper into debt -- and pile on overdraft fees in the bargain.

Much to the card banks' disappointment, soon they no longer will be able to do this. On July 1, the Federal Reserve Board will begin prohibiting financial institutions from charging overdraft fees for ATM and one-time debit card transactions unless a consumer specifically consents, or "opts in," to the overdraft service for those types of transactions.

Beware of provider-specific rules and clauses. Some issuers begin charging fees after a certain number of uses each month, and others have maximum daily spending limits. And also beware of certain merchant policies that can cause trouble -- some hotels, gas stations, restaurants and auto rental companies will "block," or put a hold, on the money in your account. In some cases, the "blocked" amount can be far higher than the purchase amount , effectively blocking you from accessing your own money.

Debit cards are also more vulnerable to "skimming," where thieves mount a phony swipe pad and steal your card information. Gas stations are prime skimming spots -- Consumer Reports recommends that if you must use a debit card at the gas pump, choose the "credit" button on the pump. The money will still be deducted from your bank account, but it will be processed through a credit-card network, giving greater protection from liability if fraud does occur.

And remember -- if you use only debit cards, you're missing a valuable chance to enhance your credit rating through the prudent use of credit cards.