3 ms·
For instance using debit cards for the riskiest locales Do not do this. Credit can be fought because it is a future debt, debit is much more difficult because
by mmanfrin 10y ago
For instance using debit cards for the riskiest locales
Do not do this. Credit can be fought because it is a future debt, debit is much more difficult because the money is already gone.
Do not, do not, do not use your debit/check/atm card at riskier places.
- jacquesm 10y agoUnless it uses chip-and-pin.
- rodionos 10y agoTo be fair, I haven't had a single case of fraudulent withdrawals happen to me. But I'm curious why would a credit card transaction be more protected? It's the same purchase 'in obligation', isn't it? My checking account balance is way smaller compared to much larger credit card limits, so there is less risk in absolute terms.
- treyfitty 10y agoBecause most credit cards and debit cards follow different regulatory protections. Credit Card: FRB Regulation Z Debit Card: FRB Regulation E From a Fraud Prevention perspective, the companies are incentivized to take measures to prevent suspicious transactions from happening to begin with. With debit cards, there is a $500 liability that can be shifted to the consumer*, so less "pressure" to develop more stringent controls. Lastly, this calls for different customer experiences when you dispute Fraud (http://www.creditcards.com/credit-card-news/4-keys-zero-liability-policies-debit-credit-1282.php http://www.creditcards.com/credit-card-news/4-keys-zero-liab...).
- uiri 10y agoA checking account is money that the bank owes you. A credit card balance is money that you owe the bank. The bank cares a lot more about getting its money back than it does about getting your money back.
- ChuckMcM 10y agoI agree with this, with a caveat. Some banks will allow you to create a 'prefunded' debit card, where you add funds to it and those are the only funds it has available. It has no overdraft, it has no ability to acquire any funds other than those allocated. Those cards are quite useful for risky places because you can use them and then burn them after you're back in safety. (just withdraw the final balance and destroy the card) Oddly, the first experience I had with fraudulent card withdrawals was when the cards were compromised in the self checkout line of the Sunnyvale Safeway store. The self checkout stations had internal skimmers installed at some point.
- rodionos 10y agoInteresting, never heard of this option. The bank I use provides a switch in their online banking UI to instantly enable/disable cards. I find it useful.
- problems 10y agoDepends on your country. For example, in Canada we have a new Interac Flash (tap card debit) system which has 0 liability for buyers or sellers.