Why Your Debit Card Isn't Safe For Any Purchase

**Cucumber** · Apr 27, 09, 1:41 am

Where did that 12% number come from?

**debitcard guru** · 2:19 pm

Sorry Moderators, if I repeted this in another thread. I prefer debit cards myself. I am from the U.S.

Sorry for the long post.

I am for the debit cards.

Type of cards an how each work.

In the United States.

1. We have a restricted atm cards. This only works at your banks atm
2. We have an atm cards that will work at just atms (However, this card is becoming obsolete)
3. We have an atm cards that will work at atms and merchants.
4. We have debit cards that will work at atms and merchants and has a MasterCard or Visa logo

Number 1,2,3 can be assigned to either a checking or savings account.
Number 3 can be assigned to an unlimited checking account.
Number 4 is usually assigned to an unlimited checking account.

Numbers 1,2, and 3 can be only used as a pin transaction.
Number 4 can work as a pin or signature transaction either method will come of your checking account.

Credit and debit cards have protections. I think debit cards have a little better protection because the bank you use is usually local and you can go to the branch and fill out a dispute form.

Some experts say you can lose all your money in your account. You could do that with a credit card. You just have to report the debit card lost or stolen faster.

For debit card with 2 business days the loss is $50.00
2 to 60 business days the loss is $500.00
60 or more business days all the money plus any overdraft.

Both MasterCard and Visa has extended there zero liability to their debit cards. If you need to claim this. You may need to request a special form from your bank. This does not apply to pin transactions. (However, I think visa interlink may be covered under this but you would have to prove it went through this network).

Regulation E requires banks to give provisional credit within 10 business day of a written dispute. They have 45 days (90 days international) to investigate

Technically it is the 11th business day (even if the bank credits you on the 10th business day, you won't be able to use tell the 11th business day.)

Another rule that is sometimes overlooked is this

for unauthorized transfers involving only your debit card number (not the loss of the card), you are liable only for transfers that occur after 60 days following the mailing of your bank statement containing the unauthorized use and before you report the loss. This info was obtained from

Credit, ATM and Debit Cards: What to do if They're Lost or Stolen

For that rule above it does not matter if your card was used as a pin or a signature transaction.

Here are my tips for the U.S. debit card Users

Have two accounts preferably at a different banks both with debit cards.
Have one that is used only for web, mail, fax and phone transactions.
Have another checking that used for in person purchases and atms.
Do not use it at pay at pump, pay inside.
When using a pin cover the entry so people and camera do not see what you put in.
Lower your daily authorization limit to $1,000
Check your checking account(s) online at least every two business days.
Only write one or two checks that have debit cards attached to the checking account.
Find a bank that has instant capture, so you can see preauthorizations online.

**rickygips** · Jun 30, 09, 8:51 pm

Thanks to this, card users like me would now be aware about these kinds of things and at the same time, become more cautious in using it.

**debitcard guru** · Jun 30, 09, 9:11 pm

Originally Posted by rickygips

Thanks to this, card users like me would now be aware about these kinds of things and at the same time, become more cautious in using it.

I use my debit card all the time. I think it is because I have a decent bank that helps their customers.

For some strange reason. I avoided all of the debit/credit card breaches. I don't know if it is because I used my pin more vs signing for the purchase or if it is just where I shop.

**fffresh** · Jul 3, 09, 12:39 pm

This is exactly why I am wary of using my debit card frequently. I have heard far too many horror stories of unauthorized charges not being reported promptly enough, and in turn, the account holder takes a loss. In today's busy world, rarely can a person commit to always checking their bank account every two days all year long. With vacations, emergencies, and the like, it is all too common for even the most attentive consumers to once in a while go several days or more without checking their account.

For me to convert to debit cards as my primary payment method, I would need to see protection that is equal to or greater than that offered on credit cards, as well as cash back that compares to credit cards. Until this happens, I will stick with my American Express.

**debitcard guru** · Jul 3, 09, 1:42 pm

Originally Posted by fffresh

This is exactly why I am wary of using my debit card frequently. I have heard far too many horror stories of unauthorized charges not being reported promptly enough, and in turn, the account holder takes a loss. In today's busy world, rarely can a person commit to always checking their bank account every two days all year long. With vacations, emergencies, and the like, it is all too common for even the most attentive consumers to once in a while go several days or more without checking their account.

For me to convert to debit cards as my primary payment method, I would need to see protection that is equal to or greater than that offered on credit cards, as well as cash back that compares to credit cards. Until this happens, I will stick with my American Express.

I never said I was against Credit card, I have one. I dont go for the big banks. The Small and medium size bank, that will work with you. Banks that treat you like a person not a number and the ones that will help out, while a fraud is being investigated.

**razeila** · Dec 12, 09, 11:07 am

the small and medium sized banks, do you mean banks like credit unions?

I am now a member of one and haven't had any trouble with stolen info like I did with my other bank

**debitcard guru** · Dec 14, 09, 6:57 am

Originally Posted by razeila

the small and medium sized banks, do you mean banks like credit unions?

I am now a member of one and haven't had any trouble with stolen info like I did with my other bank :)

No, I don't mean credit unions. Share accounts are just to confusing for me.

5/3rd use to be a small bank but got to big. I am talking about hometown banks or state run banks.

Indiana
Star Financial Bank
Pacesetter (Several banks use that name and are not related)
Citizen State Bank (Several banks use that name and are not related)
MainSource Bank (There are big, but not to bank)
First National Bank (Several banks use that name and are not related)

There are much more I could list.

All but MainSource bank. The rest are state run banks.

Yes, some of the small banks and CU can be unfriendly. I am not saying all are. Just from what I have heard.

**Cucumber** · Dec 23, 09, 10:44 pm

2 to 60 business days the loss is $500.00

Doesn't that worry you??! I mean 2 days isn't long to catch fraud. I sometimes go like almost a week without checking my bank account.

**debitcard guru** · Dec 24, 09, 7:36 am

Originally Posted by Cucumber

Doesn't that worry you??! I mean 2 days isn't long to catch fraud. I sometimes go like almost a week without checking my bank account.

That is where banks and some consumers misunderstand the laws. In the U.S. the time limit you mentioned is if the card is lost or stolen. I would notice my card stolen or lost right away.

for unauthorized transfers involving only your debit card number (not the loss of the card), you are liable only for transfers that occur after 60 days following the mailing of your bank statement containing the unauthorized use and before you report the loss.

For that rule above it does not matter if your card was used as a pin or a signature transaction.

Example, if someone gets a hold of your debit card number and they go on a speeding spree and you didn't notice tell you statement prints out. You are not libel for any amount.

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Thanks for the info!